The Truth About Contracts: It's Either on the Rooftop or Safely Ashore
When playing with contracts, don’t harbor illusions. The market has only two outcomes: either it pushes you to the peak, or it directly cleans you out.
When I first entered the market, I also paid tuition: staying up late to watch the market, high-frequency trading, and as soon as my floating loss slightly magnified, my mindset collapsed; a single needle could take away all my capital. I later realized: a liquidation is not an accident, it’s the tuition that one must eventually pay for insufficient understanding.
High leverage is a gentle trap
Do you think 3x or 5x is safe? In fact, it just postpones the risk. Once the leverage is high, losses can increase exponentially, and when combined with fees and slippage, the account is slowly drained through frequent trading.
The cruelest thing is the mathematical rule:
Lose 50%, you need to double your investment to break even;
Lose 90%, you need to multiply by 9 times to recover.
Those who survive rely on a “crisis resistance system”
I no longer place orders based on feelings, but rather establish rules:
Use the BOLL indicator to observe tightening and loosening to judge trend momentum;
Set individual stop losses not exceeding 3% of capital, refuse emotional averaging down;
Trade no more than twice a day to avoid excessive trading.
Don’t challenge market probabilities with intuition
If you always place orders based on “I feel,” the problem has never been bad luck, but rather that you lack a sustainable system.
In this game of contracts, rules are greater than mindset, and systems are stronger than intuition.
Xiao Ge only trades in real markets, not in illusions. If you want to avoid pitfalls and make profits, don’t grope in the dark alone; keep up with Ge's rhythm to steadily gain.