Understanding liquidation only after your position blows up: survival depends on execution, not luck

When I first started trading contracts, my biggest mistake was holding on to losing positions. During the first market reversal and oscillation, I refused to admit defeat, clinging to the hope that "it will rebound soon," and stubbornly stayed up until 3 a.m., watching my margin get eaten away little by little. When the margin call SMS popped up, my mind completely shut down. That’s when I realized a truth — the market never gives hesitant traders a chance. When you hit the stop-loss line, you must cut your losses decisively; admitting defeat is more dignified than stubbornly holding on.

After that, I set a strict rule for myself: if I make 5 consecutive wrong trades, I must stop immediately. Last time, the market was volatile, and I stubbornly kept trading. After 3 consecutive losses, I still refused to quit, and the fifth trade wiped out all the profits from the past two weeks. Since then, whenever I reach 5 consecutive losses, I close the trading app, go for two laps downstairs, and sleep to calm my mind before looking at the charts again — this way, I won’t be driven by emotions.

I’ve learned deeply that the numbers in my account are just paper wealth. My current rule is simple: make 3000U profit, then transfer 1500U to a cold wallet and lock it up. Last time, the market suddenly plunged, but luckily I had already withdrawn quite a bit, or else all my paper profits would have been lost. Only the profits transferred into the wallet are real gains. Don’t always think about earning more and withdrawing; in the end, you might lose everything.

I no longer look at sideways markets. I used to open three trades impulsively, thinking it was safe because the fluctuations seemed small, but the combined losses from fees and stop-losses ended up worse than trending trades. Being swept in and out repeatedly made me anxious. Now, I only follow the trend — I wait until the daily chart breaks a key level with a clear direction before acting. This way, I earn steadily and avoid being tossed around by emotions.

I control my position sizes more strictly. I once foolishly thought I could go all-in to get rich quickly, but I lost half my capital in one go — a painful lesson. Now, I only risk 10-30U per trade, so even if I’m wrong, I won’t feel bad, and I can stay calm to analyze the market afterward. Many people lose money not because of technical issues but because of excessive gambling tendencies and greed. Frankly, contract trading is not a shortcut to get rich. Survival depends on execution, not luck — set your stop-loss, close positions, and withdraw funds when needed.

In the early days, I made many mistakes and figured things out through trial and error. Later, I realized that relying solely on guesswork in this circle is inefficient. Once I understood the patterns, I found a proven method and approach that reduced a lot of unnecessary detours. The key is whether you’re willing to follow the rules.