Many novice traders share the same illusion: as long as they get the market direction right, contracts will be guaranteed profits.

I have to be honest with you—it's all just overthinking.

When I first started trading contracts, I lost 730,000 in just half a year. What's the most heartbreaking part? Those trades all had the correct market direction. So what happened? I ended up with nothing.

Later, I reviewed all my settlement slips and realized I wasn't losing to the market trend at all, but falling into three traps set by the market makers.

**First trap: Opening positions too early**

Before the market fully unfolds, you get so excited that your fingers tremble as you want to place an order. Seeing a slight breakout signal, you go all in, only to be knocked out immediately by a sudden spike. I’ve done this many times. Back then, I just wanted to trade whenever I watched the charts, afraid of missing out on anything. In the end, the mistake was in the trading itself.

**Second trap: Setting stop-losses too rigid**

Many people like to set fixed stop-loss points at 3% or 5%, thinking it’s safe. Little do they know, the contract market can easily multiply tenfold in volatility, and that small space is just a snack in the eyes of the market makers.

The most memorable experience was being wiped out three times by "false breakouts." Watching the market surge in the direction I predicted, only to be forcibly kicked out early. That feeling can drive you crazy. Later, I realized: stop-losses shouldn’t be fixed points; they need to adjust with market fluctuations. Keep your emotions stable and your strategy flexible.

**Third trap: Going all-in**

Betting everything on one trade is like handing your entire assets over to the market. Even if your direction is correct, a few opposite K-line swings can wipe out your account. When I got liquidated that day, I watched the balance zero out on the screen, and I was stunned. I couldn’t recover for half an hour.

**My later transformation**

After these disasters, I set three strict rules for myself:

First, never go all-in. Divide your funds into three parts for each position, entering gradually. This disperses risk and keeps your mindset steadier.

Second, let your stop-losses be flexible. Adjust them according to market fluctuations, rather than sticking to fixed numbers. Understand the current volatility and set your stops accordingly.

Third, don’t trade when the market is unclear. Holding cash and waiting for opportunities is also a form of position management. Many traders overlook this, but the most profitable moments often come when you do nothing.

With this logic, I gradually moved from frequent liquidations to steady profits. Over a year, my account grew threefold. It’s not an astonishing achievement, but for me, it’s a complete transformation.

In the crypto world, those who truly survive and make money are never the ones who just got the market direction right early on, but those who can survive the longest. This market is fast-paced, volatile, and full of traps. Relying solely on one’s judgment can easily lead to failure. Finding the right method and strictly following discipline are more important than anything else.