Many beginners have an innocent idea before entering the market: as long as I choose the right direction, the contract can be consistently profitable. But I have to tell you a harsh reality—correct market direction does not necessarily mean you can make money.

During the first six months of trading contracts, I went through a dark period. My account lost 800,000 yuan in just half a year. What's the most ironic part? I basically judged the market direction correctly during those waves. So what was the final result? My account was wiped out completely.

Later, I reviewed each transaction slip and finally understood where I truly went wrong. I didn't lose because of poor market judgment; I was repeatedly harvested by three traps in the contract market, one after another.

**The first trap is called "Impulsive Opening"**. As soon as there's a hint of movement, I couldn't resist entering the market. Seeing a breakout pattern on the chart, I would go all-in and bet everything. And what happened? Within two minutes of entering, the main force would reverse and spike, and I would be forced out immediately. This happened too many times, each time painfully.

**The second trap is "Rigid Stop-Loss"**. I stubbornly set stop-losses at 3% or 5%, thinking that would keep me safe. But in the high-volatility market of contracts, fixed stop-losses are like giving gifts to the market makers. I experienced being "faked out" three times in a row, watching the market surge in my predicted direction, only to be forced out before the move. That feeling, looking back, still casts a shadow over me.

**The third and most deadly trap is—Heavy Gambling**. Going all-in once is like entrusting your fate entirely to the market. Even if your market direction judgment is perfect, a few reversed K-lines can wipe out your entire account. When I got liquidated that day, watching the balance hit zero on the screen, I became numb. I sat there for a long time before I regained my senses.

Since then, I set three ironclad rules to avoid making the same mistakes:

**Rule 1: Never go all-in; always diversify your positions**. I split each investment into three parts, so even if I get hit, I won't be wiped out completely. There’s always some buffer left.

**Rule 2: Follow the market volatility with your stop-loss**. Abandon rigid fixed stop-loss points. Learn to adjust your stop-loss based on real-time market fluctuations, so you can avoid fake breakouts.

**Rule 3: Don't hold a position without clear signals**. Don't force a trade when the market signals are unclear. Better to miss a trade than to get hit once and lose everything. Not all market movements are worth participating in; sometimes the biggest gain is avoiding losses.

With these three rules, I crawled out of the pit of continuous liquidation. I gradually started to make steady profits. Over a year, my account tripled.

Now I understand—profits in contracts are never really about "directional money." True gains come from sticking to your rules and avoiding traps. Don’t let greed and overconfidence ruin your correct judgment. That’s been my biggest lesson.