In the early days of entering the crypto trading circle, my understanding of contracts could be described as naively laughable — I thought I had found a way to quickly grow my principal, but I was harshly taught a lesson by the market in just the first week. A 50x leverage trade, and my account was wiped out in half an hour. That experience made me realize a brutal truth: contract trading is not a shortcut to wealth, but a true battlefield.

**Leverage is like holding a double-edged sword**

When I first used 50x leverage, my heartbeat was more intense than the fluctuations of the candlesticks. Seeing a 1% increase would make me ecstatic, but a 0.5% decline was enough to trigger liquidation. I later understood that this isn’t surfing; it’s bleeding your principal. High leverage amplifies gains but also amplifies risks proportionally. Any tiny misjudgment of the market direction can become a fatal blow.

**Stop-loss is not a curse, but a lifesaver**

The most memorable trade: a long position on Ethereum held for three days, constantly hoping to break even, refusing to cut losses. On the night of liquidation, I was full of regret staring at the screen — if I had set a stop-loss earlier, I could have preserved part of my trading capital. This lesson taught me: timely stop-loss isn’t admitting failure, but reserving bullets for the next opportunity.

**Mental state determines the usefulness of skills**

After three consecutive stop-loss triggers, my rationality completely collapsed. With red eyes, I chased the market, buying high and selling low, and in the end, I fully committed at the all-time high. I knew this was a mistake driven by FOMO, but I couldn’t stop my finger. At that moment, I understood: without a healthy trading mindset, even the most advanced technical analysis is just empty talk.

**Follow the trend, don’t go against the heavens**

I used to disbelieve this principle, repeatedly bottom-fishing in a bear market, convinced I could catch the bottom. It wasn’t until I was crushed by the market’s steamroller countless times that I had to admit a fact: in the face of big trends, individual judgment is negligible. Instead of fighting the trend, it’s better to learn to follow it.

**Four rules bought with blood**

✔️ Always trade with funds you can afford to lose
✔️ Treat stop-loss lines as untouchable red lines
✔️ Missing opportunities is better than making wrong trades
✔️ The crypto market is full of opportunities, but your principal is only one

Now, I see contract trading as "dancing with a knife" — it requires reverence for market forces, and also learning to find rhythm amid volatility. The essence of trading is not gambling, but through strict risk management and disciplined execution, to find certainty within uncertainty.