Contract trading profits don't necessarily require risking everything. The most common pitfalls many have fallen into are: being overwhelmed by multiple indicators on one screen, making ten trades a day just to make a little profit and then quitting, or staying up all night monitoring the market and ruining their health, only to find their account getting thinner and thinner.

What is the most common failure pattern? Wanting to win too badly. Forcing bottom fishing and top picking, chasing short-term trades frequently, and ultimately being repeatedly harvested by the market, which also destroys your mindset.

Actually, thinking in reverse makes it clear. Instead of entangling with complicated indicators, it's better to use the simplest method—only two moving averages, look at the 4-hour cycle, strictly execute stop-losses, and you can achieve stable profits. Some contract traders do exactly this, with a win rate of over 95%.

So how exactly to operate?

**First point: Simplify the choice of moving averages**

Only look at EMA21 and EMA55. EMA21 captures short-term trend direction, EMA55 represents the medium-term overall trend. When EMA21 crosses above EMA55, it's a buy signal; when EMA21 crosses below EMA55, consider shorting. Don't be distracted by fancy tools like RSI, MACD, Bollinger Bands—more indicators often lead to contradictions.

**Second point: Precise entry points**

The 4-hour candlestick is the core; ignore smaller timeframes. Only enter a trade when EMA21 truly crosses above EMA55 and the candlestick closes bullish for a long position; only consider shorting when EMA21 crosses below EMA55 and the candlestick closes bearish. In ranging markets, stay out; better to miss a few opportunities than to be whipsawed and suffer losses.

**Third point: Execute stop-losses strictly**

Set the stop-loss at the high or low of the previous 4-hour candlestick, strictly within 5% of your capital. Many people can't bear to cut losses and keep holding, resulting in 20%, 30% losses, and their mindset collapses. Conversely, traders who strictly cut losses become more stable over time because they always keep risk within manageable limits.

The beauty of this method is that it only takes about 10 minutes of operation each day, no need to watch the screen all the time, no need to stay up late, and most importantly, you can make steady profits without risking everything.