Why do so many people lose everything in contract trading? Actually, it has little to do with luck; it's all self-inflicted.

I’ve summarized the 5 most common deadly mistakes made by beginners. Understanding these can help you survive longer:

**First Pitfall: Treat 100x leverage like a casino**

Beginners want to double their money right away, using the highest leverage with a lucky mindset. A 1% market fluctuation can wipe out your position instantly—game over in one round. The correct approach is to start with 3-5x leverage, get familiar gradually, and not think about getting rich overnight.

**Second Pitfall: Not setting stop-loss means waiting to die**

The phrase "wait a little longer" has caused many to fail. As soon as you open a position, set a 3%-5% stop-loss immediately, and gradually move it up as you profit. Many who get wiped out were actually close to breaking even—it's all about discipline.

**Third Pitfall: Betting your entire net worth in one shot**

Going all-in sounds exciting but is actually shooting yourself in the foot. Never risk more than 5% of your total capital on a single trade. Diversifying risk is fundamental to survival.

**Fourth Pitfall: Being driven by emotions**

FOMO and panic can cause you to buy high and sell low. The right approach is to plan your trades in advance, then follow the plan as a checklist, reducing subjective judgment.

**Fifth Pitfall: Not knowing you’re being manipulated by the exchange**

Manipulations like price spikes and slippage can directly affect your costs. Choose reputable, stable exchanges, avoid trading during major news events, and you can avoid many pitfalls.

Ultimately, contract trading tests your discipline and psychological resilience. Reject a gambling mentality to survive longer in this market.