Having navigated the contract market for several years, I have transformed from a novice prone to frequent liquidations to someone who can consistently generate profits. I’ve come to understand a simple truth: this is not about luck or insider information, but about execution.

The trading framework I follow is straightforward, based on three ironclad rules:

**First: Diversify Risk**
Never fully commit your capital. Strictly control each position; if losses reach 2%, exit decisively. Better to miss out than to hold on and suffer bigger losses. This may seem conservative, but it’s this conservatism that has kept me alive until now.

**Second: Restrain Greed**
Limit yourself to 1–2 opportunities per day; only trade when you have high confidence. The market always offers opportunities, but the ones that truly belong to you are few. Precision beats frequency.

**Third: Mechanical Execution**
Set a 3% stop-loss and a 5% take-profit, and stick to these plans regardless of emotional fluctuations. Trading is about repeatedly following rules; emotional trading is the root cause of losses.

Most people's losses stem from three common mistakes: full-position gambling, excessive leverage, and stubbornly holding onto losing positions. My approach is exactly the opposite—small positions, low leverage, strict stop-loss.

A simple comparison of data makes this clear:
With the same 100,000 capital, one approach is full leverage and all-in gambling, which often results in a total wipeout after a single liquidation. The other approach uses only 20,000 as a base position, with monthly returns consistently above 8%. When compounded annually, this can reach over 150%. After one month or one year, the accounts of these two types of traders are worlds apart.

The contract market is essentially a survival competition. Only those who can stay alive and stick to the rules have a chance to pocket profits in the end. The mindset of quick wealth often becomes the ticket to elimination.

If you’ve already realized this and are willing to exchange discipline for profits, then it’s worth exploring more specific trading strategies together.