Friends who have been doing spot trading for years recently want to switch tracks and try contracts. The reason is simple—want to make quick big money. I immediately dissuaded them after hearing this.

To be honest, these two paths seem similar on the surface, but their underlying logic is worlds apart. The rules of spot trading are straightforward: buy assets, wait for value appreciation. Short-term fluctuations are not a concern; at worst, hold on and accept the loss of principal if necessary. But contracts operate on a different set of logic. Leverage is a double-edged sword; it can amplify your gains tenfold or wipe out all your assets in the blink of an eye.

The problem lies here—people accustomed to spot trading often approach contracts with the mindset of "holding on." When opposite fluctuations occur, they hesitate to cut losses, thinking they can hold on for another wave. As a result, a small, unexpected market move can trigger a liquidation. When the account is wiped out, they finally realize how different the two are.

What’s even more painful is that the so-called "quick money" is essentially a gambler’s mentality. Contracts do indeed profit from short-term price differences, but true experts rely on precise judgment and strict trading discipline. They focus on stable risk-reward ratios and certainty, not luck to chase illusory huge profits. Many veteran spot traders end up losing everything in contracts because they fail to understand the fundamental differences between the two trading styles, stubbornly sticking to old methods, and ultimately losing all their years of profits.

There are too many stories of wealth creation in the market, but even more people rush in impulsively and end up liquidated. Instead of rushing into high-risk games, it’s better to stay grounded within your capabilities and secure the profits you’ve earned without risking them all.