Why do you always stumble in contracts? The problem might not be luck.

After nearly ten years of trading, I’ve discovered one fact: out of those who get liquidated, nine out of ten fail at risk control. The market isn’t out to get you specifically—it’s your own math that’s off.

Learn these tips below and you’ll pay less in tuition fees—

**High leverage ≠ high risk; it depends on how you use it**
Opening 100x leverage sounds scary? But if you only use 1% of your account to open a position, the actual risk you bear is no different from putting 1% of your capital in spot trading. Remember this formula: real risk = leverage × position size percentage. Don’t be fooled by the numbers—the key is how much real money you put in.

**Stop-loss is your lifeline, not admitting defeat**
In the 2024 crash, data shows 78% of liquidated accounts kept holding on after losing 5%. Seasoned traders all know one rule: the loss per trade should never exceed 2% of your capital. This isn’t cowardice; it’s giving yourself a chance to bounce back.

**Do the math before opening a position**
Here’s a simple calculation: your maximum investment per trade = (capital × 2%) ÷ (stop-loss percentage × leverage multiplier). For example, with $50,000 in capital, willing to risk a 2% loss, and using 10x leverage, the most you can put in a single trade is $5,000. Anything over that is gambling with your life.

**Take profits in batches; don’t expect to get rich in one go**
Take one-third off the table after 20% gains, another third at 50%, and close out the rest if it drops below the 5-day moving average. Last year, someone used this strategy to grow $50,000 to $1,000,000. Greed is fine, but you need self-control.

**Spend a little for insurance; it can save your life at critical moments**
While holding a position, use 1% of your funds to buy a put option (Put Option)for insurance. During the 2024 black swan event, people who used this tactic kept an average of 23% more of their capital. It’s like buying fire insurance for your house—you think it’s a waste until something happens, then you realize it’s worth it.

**Whether you make money can actually be calculated**
Profit expectancy = (win rate × average win) - (loss rate × average loss). Suppose you lose at most 2% per trade and take 20% profits, even with a win rate of only 34%, you’ll still make money in the long run. This isn’t mysticism—it’s math.

**Finally, four iron rules**
1. No single trade loses more than 2% of capital
2. No more than 20 trades per year
3. Risk-reward ratio at least 3:1
4. 70% of the time, stay out and observe

The market isn’t short on opportunities—it’s short on people who survive until opportunities arrive. Those who trade on gut feelings end up as someone else’s ATM. Stick to discipline, and you’ll be the one laughing in the end.