For friends trading contracts, spend a few minutes reading this. It might help you avoid some pitfalls and preserve your principal.

Are you often frustrated by these issues: the market moves against your position right after opening, you set a stop loss but it spikes immediately after closing; you correctly judge the direction but end up losing the most? Instead of blaming luck, ask yourself: do you truly understand contracts?

Honestly, trading contracts isn't about buying coins; it's a gamble against the exchange. The exchange acts as the house, sitting in the middle. The money you earn is paid by others, and your losses also go into someone else's pocket. The fundamental nature of this game means you can't just rely on guessing the right direction.

Many people underestimate funding rates, thinking they are insignificant. But when the funding rate stays positive for a prolonged period, you should be alert—this is the market clearly telling you that you're in a high-risk zone of being trapped. Once the crowd enters and follows the trend, you can get locked in your position.

Leverage is the most deceptive tool. It seems to amplify your gains, but in reality, it proportionally increases risks, fees, and costs. Fees, funding rates, spreads, liquidation prices... the exchange chips away at you bit by bit through these details.

Some think that 10x leverage can handle 10% volatility, but they forget that liquidation prices are calculated very tightly. Without significant market swings, your account can be wiped out instantly.

The most dangerous thing is "rolling over" positions. After making a profit on one trade, you go all-in on the next, thinking the snowball will grow bigger and bigger. But a market turn can wipe out your profits and even your principal. Rolling over can work, but you must leave yourself a backup—only risk half of your profits, and keep the rest safe.

Don't always complain about "point-blank explosions." The market doesn't target anyone; it's just that you stood in the wrong place. I'm not a master of guaranteed profits, but I’ve been early into trades, fallen into enough pits, and survived to share these insights.