What does contract trading really test? The direction or the rhythm?

Recently, I’ve seen frequent cases of beginners entering and being wiped out instantly. Looking through their account records, it’s always the same pattern—money can be gone in just a few seconds.

Below are 5 pitfalls that beginners must avoid. Be sure to remember them after reading.

**Pitfall 1: Maxing out leverage right from the start**

The moment they enter, they’re dreaming of doubling their money, going for 50x or 100x leverage. When the market slightly jitters, the account is gone.

Contracts are not about who has the bigger guts; it’s about who survives longer. 3-5x leverage is the normal way to play—able to withstand fluctuations and give yourself room to adjust.

**Pitfall 2: Entering without setting a stop-loss**

"Wait a little, and it will rebound"