Many people clearly know that contract trading is extremely risky, yet they still rush in, ultimately ending up blowing up their accounts. Why is this? The core issue is that they have a fundamental misunderstanding of risk.
Many people mistakenly believe that 'using 5 times leverage is very safe', this idea is fundamentally wrong! Full position with 5 times leverage means that as long as the price drops by 20%, the account will directly blow up. The key to risk is not the level of leverage, but whether you accurately assess your account's capacity to bear losses, that is, the maximum retracement percentage you can withstand.
So, how do true contract trading experts operate? They do not seek to get rich overnight, but rather use leverage to amplify their own trading discipline. Each time they open a position, they only use 10%-20% of their capital, keeping the overall position controlled within 2-4 times the total funds. Most importantly, they absolutely do not go all in, risking all their funds.
Successful contract trading resembles a rigorous operating system: patiently waiting for the right trading opportunity → cautiously building a small position → strictly implementing stop-loss strategies → gradually increasing positions only after confirming signals. This is not gambling, but a meticulously planned hunting operation that requires patience and skill.
Why do most people suffer heavy losses in contract trading? It is not because their technical skills are lacking, but because the weaknesses of human nature are difficult to overcome at critical moments. When prices rise, they are eager to chase; when prices fall, they cannot resist bottom-fishing, knowing that risks are accumulating yet still unable to control the impulse to increase their positions. In speculative markets, the hardest part is not mastering the technique, but conquering one's own greed and fear.
So, in contract trading, why are some people able to sustain profits? Because there will always be someone who blows up their account, providing profits for the market. To become a profit-maker, one must first learn how to avoid blowing up their account.
Remember not to blindly go 'All in', and don’t constantly fantasize about 'regretting not bottom-fishing this time for the rest of your life'. Are you here to dream in the market, or to make money? Dreamers will ultimately be ruthlessly eliminated by the market; while those who truly understand risk can steadily reap profits when opportunities arise.
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