Only after entering the contract market do you realize that the most heartbreaking thing is not how fierce the market is, but the pitfalls you step into without noticing. Sometimes just a few seconds are enough to wipe out your entire principal. Recently, I’ve observed a phenomenon—many people go in and are wiped out immediately. Looking back, it’s mostly due to the same few mistakes.

Today, I will organize these common rookie pitfalls to help you avoid detours.

**Pitfall 1: Using outrageous leverage**

Starting a position and thinking about doubling your money, going all-in with 50x or 100x leverage—then, when the market moves slightly, your account is instantly wiped out. Contract trading is not about courage; it’s about understanding and managing risk. Excessive leverage is like handing your fate over to market volatility. In reality, 3 to 5x leverage is enough—it can withstand normal market fluctuations and leave room for adjustments. This way, you won’t be hopelessly unable to recover after a downturn.

**Pitfall 2: Not setting stop-loss orders**

“How about waiting a bit longer? The rebound is coming soon”—how many times have you heard that? After losing so much, unwilling to cut losses, the result is only sinking deeper. The correct approach is to set your stop-loss before entering a position. If you make a profit, remember to gradually raise your stop-loss. Staying alive and participating is more realistic than gambling everything for a big win. Stop-loss is essentially an insurance policy for yourself.

**Pitfall 3: Going all-in with a single shot**

Thinking that a good opportunity means you should go big—only to get liquidated directly. Trading is not gambling; risk per trade must be strictly controlled within 2% of your total principal. For example, if your account has 10,000 USDT, even with 10x leverage, your single trade should not exceed 200 USDT. This way, even in the worst market conditions, you won’t blow up your account.

**Pitfall 4: Being manipulated by emotions**

Chasing the market when it rises, panicking when it falls. Falling for FOMO makes you prone to liquidation. Truly consistent traders have pre-planned strategies and execute them calmly according to rules, not impulsively rushing in. Don’t stare at K-line charts late at night; don’t let your emotions fluctuate wildly.

**Pitfall 5: Ignoring exchange risks**

Many only realize the risks after suffering losses. The pitfalls of contract markets—such as slippage, extreme market conditions, and sudden spikes—often catch you off guard. Trade on mainstream platforms whenever possible. Before major news releases or during extreme market conditions, it’s best not to operate recklessly. The contract market is brutal, but opportunities always favor those who understand the rules and follow discipline. Don’t rush to gamble your principal; learn this logic steadily, trade carefully one order at a time—that’s the true path to wealth accumulation.