Many people ask me how a trader who lost everything in the contract market managed to get out of the predicament. To be honest, the process was filled with too much frustration and reflection.

I still remember when I first entered the contract market, I would stay in front of the K-line until dawn every day. Trend lines, Fibonacci, MACD, RSI—nothing was left out. I was so naive back then, thinking that if I studied all technical indicators thoroughly, making money would be a sure thing. But what happened? In less than half a year, all five of my accounts were wiped out. That feeling of hope plunging into despair still makes my heart ache when I think about it.

Later, I realized that liquidation was never due to insufficient technical skills, but rather because of my mindset and discipline being defeated.

**Frequent Trading—An Endless Pit of Fees**

I have observed many traders around me, and 90% of beginners make the same three mistakes. The most common one is overtrading.

At that time, I was trading more than 20 times a day, as if not trading would make me uncomfortable. Every fluctuation in the K-line seemed like an opportunity, and I was eager to seize every rise and fall. But ironically, the real money lost wasn’t from market moves, but from fees eating up 5% of my principal. During that period, I felt like I was working for the exchange—frequent entries and exits not only increased transaction costs but also made it easy to make reckless decisions driven by emotions. Looking back now, that wasn’t trading, that was gambling.

**Emotional Overleveraging—From Small Losses to Liquidation in One Step**

Even more terrifying was the unwillingness to accept losses. As soon as I was floating in profit, I would start to add to my position frantically, thinking that increasing my chips could turn the tide. A position that could have been closed with a small stop-loss was dragged into liquidation by me. That was definitely one of the deadliest mistakes.

I still remember very clearly the scene of my fourth liquidation. I lost a little on that trade, but I didn’t admit defeat in time; instead, I thought the price would rebound sooner or later. But what happened? The market didn’t move as I imagined; it kept sliding down. I became more and more panicked, adding to my position repeatedly in an attempt to save myself, until finally the market plunged instantly, and my account was wiped clean. At that moment, I truly understood what helplessness feels like.

**The Truth About Technical Analysis**

Many people think I’m here to praise how important technical analysis is. But honestly, my current attitude is: technical analysis is just a tool, never a guaranteed winning method. No matter how perfect a technical pattern is, it can’t prevent you from making emotional decisions. I’ve seen too many people who understand candlestick charts blow up their accounts, and I’ve also seen those who made it big using simple moving averages. The difference is discipline.

**The Turning Point**

Later, I started doing something that seemed boring—only 2-3 planned trades per day, strictly following preset stop-loss points. I didn’t make money in the first month, and I even felt a bit like I was losing. But by the third month, my account surprisingly started to grow steadily. That’s when I truly understood: surviving in the crypto market is more valuable than making quick profits.

Now, if a beginner asks me how to trade contracts, I’ll say one thing: control your mindset and risk management, technical indicators are just references. The real key to making money is discipline and patience, even if they seem the most boring.

This isn’t some secret trick; it’s the real experience I gained from five liquidation events. I hope it helps you avoid some detours.