Many people enter into contracts thinking they'll get rich overnight, believing that as long as they identify the right direction, they can just sit back and collect profits. But the lesson I learned from spending 800,000 yuan in tuition fees is: guessing the market direction correctly doesn't necessarily mean you can make money.

When I first started trading contracts, I lost 800,000 yuan in just half a year. The most ironic part is that the settlement statements I pulled out showed that my market judgments were actually correct several times, but in the end, I still got trapped and forced out. Only after repeatedly reviewing did I realize—I'm not losing to the market, but stepping into three carefully designed traps set by the market makers.

**Trap 1: Going all-in at the breakthrough**

Once I saw a breakout, I couldn't wait to go all-in. The result? Just as I entered, the big players quickly countered with a spike, wiping out retail traders like me in an instant. The worst part was, the market turned and moved in the direction I predicted, but I had no bullets left and could only watch helplessly.

**Trap 2: Sticking stubbornly to fixed stop-losses**

I habitually set fixed stop-losses at 3% or 5%, thinking this would ensure safety. Little did I know, the volatility in the contract market is much greater than I imagined. During that period, I was repeatedly stopped out by "false breakouts" three times. Each time I just settled, only for the market to rally in my predicted direction afterward, causing me to miss the best entry points.

**Trap 3: Going all-in with everything**

Full position trading is basically gambling. Even if your direction is correct, just a few counter-trend candles can wipe out your account entirely. After a margin call that day, seeing the balance drop to zero, I felt completely frozen.

After experiencing these, I set three bottom lines that I would never cross:

**1. Never go all-in—divide your position into three parts and enter gradually.** This way, even if you get wiped out once or twice, you still have a chance.

**2. Adjust stop-losses according to market volatility; never stick to a fixed number.** Learn to manage risk dynamically based on candlestick patterns and support levels.

**3. Stay out of the market when the trend is unclear.** Better to sit on the sidelines than to hold on stubbornly.

After strictly following these three rules, I finally crawled out of the hell of consecutive margin calls. Looking back now, making money isn't about guessing the market correctly a few times; it's about whether you can hold your bottom line. The truth of contract trading is: survive first, then have a chance to win.