Newcomers to the contract market often overestimate their risk tolerance. Fierce market movements are not the scariest part; the scariest is not reacting at all, with your principal evaporating in seconds.

Many beginners will fall into five traps, and you will definitely experience some of them.

**Trap 1: Leverage multiplied to the max right from the start**

Dreaming of 50x or 100x leverage to turn things around in one shot. But what happens? A slight market fluctuation immediately wipes out your account. The essence of contract trading is not about who has the bigger guts, but who can survive longer. For beginners, 3-5x leverage is enough. This level allows you to benefit from volatility while leaving room for mistakes.

**Trap 2: Never set stop-losses when opening positions, just hold on**

Always thinking that waiting a bit longer will recover your losses, but the more you lose, the harder it is to cut. The market will never show mercy just because of your persistence. Before opening a position, think about the worst-case scenario. After making a profit, immediately move your stop-loss up. Stop-loss is not about admitting defeat; it’s a survival tool.

**Trap 3: Going all-in at the first opportunity**

Feeling that the chance is rare and wanting to solve everything with one trade. This is not trading; it’s gambling. The risk exposure per trade should ideally be controlled at about 2% of your total capital. For example, if you have $10,000 in your account and use 10x leverage, your maximum loss per trade should not exceed $200. This way, even in extreme market conditions, you won’t be kicked out with a single blow.

**Trap 4: Letting emotions control trading**

Fearing missing out when prices rise, panicking when they fall, chasing gains and selling at losses becomes a conditioned reflex. Truly consistent traders have a clear plan before entering, then follow the rules strictly, not being led by the ups and downs of the K-line. Sometimes, staying up late to monitor the market yields far more than making a few extra trades.

**Trap 5: Insufficient understanding of platform risks**

Slippage, extreme market shocks, and sudden price impacts are often more severe than you imagine. Choosing a top-tier exchange is basic. Before major positive or negative news, avoid trading if possible, and wait until market sentiment stabilizes.

The contract market indeed shows no mercy. But it only harvests those who don’t understand the rules. Don’t rush to gamble with your principal; first learn how to survive in this market, then gradually grow. That’s how you can go further.