There is a well-known saying in the contract market: Rules kill emotions; being slow is actually fast.

That early morning at 3 a.m. left the deepest impression on me. The market on the screen was wildly fluctuating, and my position was suddenly forcibly liquidated. This was already the fifth time that month. I can still feel that heart-stopping sensation when I think back.

Initially, I also thought that high leverage was the fast lane to turnaround. Later, I realized a truth: perpetual contracts themselves are not a trap, but the misperception of them is.

**Why Do You Always Lose Money**

In the early days of entering the scene, I stepped into all the pits. Seeing a surge, I would FOMO chase the high; when it dropped, I’d panic and cut losses; blindly following the calls of certain "big V" influencers, only to end up being harvested; the most outrageous was obsessing over high multiples—50x, 100x leverage—constantly going all-in, thinking that was the synonym for high returns.

But the market has a kind of magic that cures all luck-based mentalities. Contract trading is a zero-sum game—you make money because someone else loses. In this ecosystem, emotional traders are the easiest targets to be liquidated. The only common trait among those who survive is discipline.

**The Truth About Perpetual Contracts**

Perpetual contracts are financial derivatives, with the core mechanism allowing you to profit without holding the underlying asset, by predicting price movements. The design of two-way trading indeed opens up new possibilities—profit from both rising and falling markets, and with leverage, even small accounts can participate in big trends.

The problem is, leverage amplifies not only gains but also risks. Many treat it as a gambling tool, which often leads to disaster.

**What Is the Survival Rule**

After experiencing multiple liquidations, I summarized a set of principles. The core of these isn’t complicated technical indicators, but two words: rules.

First, set a stop-loss bottom line. No matter how optimistic you are about a trend, always pre-set your stop-loss point. Emotions can deceive, but numbers won’t.

Second, the lower the leverage, the better. 50x or 100x leverage may seem like a quick way to get rich, but in reality, it’s just gambling on probabilities. If you must use leverage, 3x to 5x is a relatively safe range.

Third, don’t chase highs or bottom-fish. These two actions seem to present great opportunities, but in fact, they are emotional traps leading to death. Wait for clearer signals; better to miss an opportunity than get caught.

Fourth, position management is a matter of life and death. Even if you are right about the direction, going all-in at once can wipe you out on a pullback. Divide your funds into several parts and deploy gradually—that’s the long-term survival strategy.

Fifth, record every trade. Not to show off, but to discover which trading habits are profitable and which are losing money. Data speaks.

**From Emotions to Rules**

When you stop relying on feelings and strictly follow rules for entry and exit, amazing things happen. The frequency of liquidations decreases, and individual losses become manageable. Most importantly, you begin to truly understand the meaning of risk.

The crypto market is never short of stories. What’s missing are those who can resist temptation and stick to their rules.