Newbies who don't know how to play contracts, look here!!!

Contracts, to put it simply, are leveraged spot trades.

If played well, you can turn things around in three days.

If played poorly, you can get liquidated in a day.

Many newbies enter the market thinking, "Let’s use some leverage to double up," only to find their funds educated by the market.

I've been in contracts for over a decade, experiencing bull and bear markets. If you really want to survive in contracts, remember a few points:

First: Position size is life.

The biggest problem for newbies is going all-in immediately. With 10x leverage, if the market takes a sharp downturn, your account goes to zero. Experienced traders never do this. My position habit is to first take a 20% position to test, and if the direction is confirmed, gradually increase the position. Never give the market a chance to knock you out in one hit.

Second: Don’t guess blindly at candlesticks.

Newbies love to go with their “feelings,” shorting when they see too much red and going long when they see too much green. The real key points are support and resistance levels. For example, if the price tests a certain level three times and doesn't go down, that's strong support, a chance to go long. Conversely, if it repeatedly fails to break through, that’s a resistance level, making short positions safer.

Third: Stop-losses are more important than take-profits.

When I first started trading contracts over a decade ago, I always thought the market would come back. As a result, I never set stop-losses, and lost hundreds of thousands. Later, I realized that setting a stop-loss isn't throwing money away, but a way to protect yourself. Setting a stop-loss is like wearing armor on the battlefield.

Fourth: Follow the trend to make profits.

The market is always richer than you. Going against the trend and challenging the major players will only lead to losses. For example, if the major trend is upward, and you insist on shorting, even if you make quick money off a downward spike, you'll eventually give it all back. Remember this: follow the trend to make profits, go against it and you’ll face losses.

Fifth: Mindset is the hardest lesson to master.

Many people get liquidated not because of poor skills, but because their mindset collapses. After two consecutive losses, they want to go all-in to recover, resulting in immediate exit. Experts always use a “slow knife to cut meat” approach, taking breaks when needed, not letting emotions dictate their actions.

Contracts are not complicated; what’s complicated is human nature. If newbies truly want to grow, they should first learn to manage their positions, then learn to identify key levels, and finally trade with the trend. Don’t think about getting rich overnight; if you can survive in contracts for a long time, you’ve already won against 90% of people.

If you can really do these points mentioned by experienced traders, contracts won't be a “hell mode,” but rather a cash machine for you.