Recently, I've seen frequent liquidations and it reminded me of my own past pitfalls. To be honest, when I first started trading contracts, I also took some heavy hits, even very heavy ones. Market opportunities are everywhere every day, but once your principal is gone, it's really gone—this is the knowledge gained from real money.

**Why High Leverage Is Always Deadly**

At the beginning, I was very greedy, often using 20x leverage, thinking that's the way to "fully utilize opportunities." But in reality? Slight price fluctuations could wipe out my position. Leverage seems to double your gains, but essentially, it pushes you closer and closer to liquidation. Later, I changed my approach: a maximum of 5x leverage, with 2-3x for daily trading. The profits might not be as fast, but the key is to survive longer. Trading is never about who makes the fastest money, but about who can stay in the market the longest. Low leverage gives you the chance to make mistakes—you can set stop-losses, add to positions, or readjust your strategy. Once liquidated, everything is over.

**Stop-loss is not optional; it’s a survival line**

I used to always think "just wait and see," but in the end, small losses turned into big losses, and I was forced to cut my losses at the lowest point. Now, the rule is simple: set a stop-loss on every trade, and plan your escape route before placing an order. Set the stop-loss about 3% below support levels, and exit immediately if a key level is broken. This approach might cause you to miss some reversal opportunities, but more often, it prevents potentially huge losses. Protecting your principal always comes first.

**Position management is the real dividing line**

In the past, I was very prone to overestimating my judgment, wanting to go all-in on every good opportunity. Sure, I could make some small profits, but if I was wrong, the entire account would suffer. Now I understand that even the most certain opportunities require controlling position size. Diversify orders, enter in batches—this way, even if your judgment is wrong, your losses are manageable.