Many novice contract traders tend to fall into the same trap—experiencing a sharp decline in their accounts in a short period of time. Recently, a trader confided in me that his contract operations either resulted in liquidation or significant drawdowns, leaving him in self-doubt. After analyzing his trading records carefully, I found that those who get liquidated often share a few unavoidable common issues.

**Overleveraging is the first killer**. Many people go all-in as soon as they enter the market, and when the trend slightly reverses, their psychological defenses collapse immediately. Some say that small positions earn too slowly, feeling like they are stuck in place. But this actually reflects a dangerous mindset—always hoping for a sudden reversal. The market loves this. Light positions, on the other hand, give you more room for mistakes and trial-and-error.

**Refusing to admit mistakes is the second trap**. When the market turns, many traders still deceive themselves, thinking "it will come back if I wait a little longer." The reality is often cruel—what you get is not a rebound but a direct wipeout. This kind of luck-based thinking has caused many to fail.

**Lack of stop-loss settings is the third deadly flaw**. Some believe they can manually close positions by watching the screen. The problem is, when the market moves rapidly, you simply don’t have time to react. In the blink of an eye, losses become irrecoverable.

So, how do truly stable traders operate? Maintaining small positions is fundamental. Even if they make a wrong judgment, their losses are completely manageable. Over a month, this stable approach often outperforms those aggressive gamblers.

There is an important psychological turning point—when your account truly doubles, withdraw the principal immediately. Use the profits earned earlier to continue trading. At this point, your mindset becomes much more relaxed, and your decisions are more rational.

The essence of contract trading is not about who has the bigger guts, but about who can survive long enough. Survive steadily and safely, and you will be qualified to wait for the next real opportunity.