I've seen and heard a lot about beginner-level contract trading, ultimately leading to losses.
I always say that contracts are not dangerous or risky at all; all risks stem from your own actions and mindset.
Most losses originate from mindset and technical aspects:
1. Greed, leverage issues, not taking profits, poor fund allocation.
2. Reluctance, not stopping losses when needed, stubbornly holding positions without a plan.
3. Fear of market uncertainty, randomly closing and opening positions without calmness.
4. Unfamiliarity with operations, not understanding interface functions.
5. Lack of proper planning and layout, lacking the concept of minimizing losses.
6. Not considering capital and time, opening positions at inappropriate times.
7. Complete ignorance of price trends, news events, and various analyses.
Contracts actually amplify profits, not risks; your maximum loss can be seen from the moment you open a position, which is the capital you initially invested. It will not increase, but profits can grow.
Your profit comes from the mistakes of others and related adjustment indices.
The market can trigger your irrationality, leading to mistakes, which is the source of your losses. You must maintain a win rate; winning does not mean you won't incur losses.
Beginners should stay away from contract trading because you haven't grasped the basic concepts I've simply outlined above and often engage in irrationally bizarre operations.