There is a saying in the crypto world: Become a contract, fail as a contract!

Why does this phenomenon occur:

Leverage Effect: Contract trading often uses leverage, meaning that one can operate with a larger amount of funds using a smaller capital. This makes profits seem more enticing, but once the market reverses, losses can also be magnified.

Emotional Fluctuations: Many people are driven by emotions during contract trading, easily failing to set stop-losses due to overconfidence or greed, which can lead to massive losses from a single mistake.

Insufficient Risk Management: Due to the high-leverage nature of contract trading, many investors lack comprehensive risk management strategies, especially during periods of significant price volatility, making them susceptible to failure due to improper operations or lack of patience.

How to avoid the fate of 'failing as a contract'?

Risk Control: Contract trading must have strict stop-loss and position control, avoid excessive leverage, and maintain rationality. Emotional Management: Never make emotional decisions due to temporary market fluctuations; stay calm and rational, and follow your trading plan. Long-Term Vision: In contract trading, while one may earn more in the short term, it's important to avoid overly frequent short-term trades and to manage and plan long-term capital effectively.