# Why Do You Still Lose Money Even When You Guess the Contract Direction Correctly?

There's a harsh truth — you think that as long as you judge the direction correctly in contracts, you can make money. But that's not the case.

When I first started trading contracts, I lost 800,000 in just half a year. The most ironic part is that in those trades, my direction was actually correct. So what happened? I still lost everything.

Later, after carefully reviewing the settlement records, I realized I wasn't losing to market trends, but being repeatedly tricked by the strategies of the big players. They only have three tactics, yet they kept causing me to get liquidated.

## The First Trap: Impatient Entry

As soon as the market started moving, I couldn't resist jumping in. I would go all-in on any breakout, but just as I stabilized my position, the big players would spike the price and knock me out. It felt like you just caught your breath, then suddenly get knocked down.

## The Second Trap: Setting Stop-Losses Too Tight

To be "safe," I set stop-losses at 3% or 5%. Sounds reasonable, right? But in a highly volatile contract market, this is basically a gift to the market makers. I was swept out three times by "fake dips," watching helplessly as the price reversed and surged, while I was already kicked out. That feeling really makes you want to smash your phone.

## The Third Trap: Going All-In

This is the most deadly. Betting your entire assets on one trade, essentially handing over the life and death of your account to the market. Even if your judgment is correct, a few K-line reversals can wipe your account clean. That night I got liquidated, staring at the zero in my balance, I was completely stunned.

## My Three Iron Rules

After these lessons, I set three rules I must follow:

**1. Never go all-in** — Divide your position into three parts, leaving room for error. Even if you make a mistake, you won't lose everything.

**2. Follow the market with your stop-loss** — Don't stick to fixed numbers; adjust dynamically based on volatility. This way, you can truly avoid fake breakouts.

**3. Stay out of unclear markets** — Instead of gambling on luck, wait until signals are clear before entering. This greatly increases your chances of success.

## How Has It Worked?

From repeatedly getting liquidated to being able to profit steadily, these rules helped me triple my account in about a year. The money made in contracts never comes from luck or guessing the right direction; it’s earned by those who understand how to avoid traps and strictly follow discipline.