After getting liquidated, I finally realized one thing: those contract traders who refuse to cut losses are basically market’s little leeks.

Why do so many people end up losing everything in contracts? It’s not because the market is really bad; the fundamental reason is one—never taking stop-loss seriously.

I’ve seen firsthand someone turn 100,000 into 1,000,000, only to refuse to stop-loss once, and their account went to zero. I’ve experienced that feeling myself.

When Bitcoin was surging strongly, I stubbornly shorted against the trend, thinking "wait for a pullback and then exit," but what happened? The price shot straight up, and my position was wiped out. Even more ridiculous was when I chased highs with long positions, set take-profit orders, only to be stabbed back to the start by a long wick.

Every time I review a liquidation, the root cause points to the same thing— that deadly phrase "wait and see." Not cutting losses is essentially sealing your own exit.

From these painful lessons, I’ve summarized two iron rules:

**First, holding a position might seem like luck once, but continuously holding is courting death.**

**Second, what truly protects you isn’t "how much you make on this trade," but "how much you can lose at most on this trade."**

Now, I follow only three principles in trading contracts, each earned through losses:

**Principle 1: Stop-loss is life-saving.**

You must set a stop-loss when opening a position, and the higher the leverage, the more ruthless you need to be. For example, with 20x leverage, your stop-loss should never exceed 5%. Take losses properly—don’t try to turn the tide in one shot. That’s the mindset of a gambler, not a trader.

**Principle 2: Lock in floating profits.**

Paper profits aren’t for dreaming—they’re for protection. Once you’re in profit, move your stop-loss upward. Never let a large pullback eat away your gains. This is a variation of "lock in profits," but in contracts, it’s about "timely protection."

**Principle 3: Set a mental stop-loss.**

If you suffer several consecutive losses, stop immediately and cool down. Don’t let emotions drive your trades; when your mind is chaotic, you can’t make rational decisions. Rest is the best trade at such times.

My contract trading approach is actually very simple: low risk exposure, high reward-to-risk ratio. Let profits run in a bull market, and cut quickly in a bear. That’s how you survive longer in the market.

Finally, I want to say:

Stop-loss isn’t admitting defeat; it’s tactical retreat.

Those who survive until the end of the market are never those who never lose—such people simply don’t exist. The ones who truly survive are those who learn to control losses, preserve capital, and patiently wait for the next opportunity.

Remember this: **Market opportunities will always come again, but if your capital is gone, the game is over.**