3 "Death Traps" That Cause 90% of Contract Players to Lose Their Accounts

In the contract market, most losers do not lose because of “bad luck”, but because they unconsciously step into the 3 most dangerous traps — the traps that suck the wallets of inexperienced people dry. When you understand their nature clearly, you will see: account burn is not an accident, but an inevitable result of accumulated mistakes.

1. The “Death Trap” That Causes Newcomers to Continuously Burn Their Accounts Trap 1: Viewing leverage as a “profit multiplier” Many newcomers rush into opening 20x, 50x with the thought that “just one correct trade is enough to recover everything.” But leverage not only amplifies profits — it also amplifies risks: 10x → just a 5% reverse price movement and the account is liquidated 20x → just a 3% reverse fluctuation and the capital is wiped out 50x → 1.5% and the account is gone Not to mention transaction fees and slippage: even if you go in the right direction, profits are often “eaten away” almost completely. High leverage helps get rich quickly — it also helps lose everything quickly. Trap 2: Setting stop-loss like a “gamble” There are two classic types of mistakes: Placing stops too close: the market just needs to shake lightly to wipe out the orders and then rebound. Placing stops too far: losses balloon, and by the time you want to cut, you don't dare to cut. Frequent “whipsaws” or long wicks occur, turning an ideal stop-loss into a heavy loss stop-loss. Losing too deeply once means you need to win 3–5 times just to break even — which is almost unrealistic. Trap 3: The mentality of “one order can change your life” The most dangerous thought: “This order will reach the shore” “A strong trend is all it takes” The futures market is a game that exists beforehand - making money afterward. You can win 10 consecutive bets, but just one all-in and everything goes back to zero. Survivors are disciplined people, not lucky ones.
2. Guide to Avoiding Traps Based on Bollinger Bands (BOLL) BOLL is a visual and effective tool, especially for contract players. The strengths of BOLL are: has just announced the market range and warned of strong fluctuations that are about to occur. Signal 1: BOLL narrowing → the market is about to fluctuate When the upper and lower bands contract: Price range narrows Volume decreases The market accumulates energy → Do not open orders hastily, wait for the candle to break the boundary + increase in volume to confirm the direction. Signal 2: BOLL expands → trend formation When the upper band opens up and the lower band opens down, the candle body follows one of the two sides → the trend begins. Uptrend: enter orders around the lower band, stop loss at the middle band Downtrend: enter around the upper band, stop loss at the middle band Middle band = dynamic stop-loss line according to price → Reduce risk, avoid unreasonable stop hunting. Signal 3: Price breaks the range but bounces back → false signal The price broke above the upper band and then suddenly fell. The price broke below the lower band and then sharply reversed. → This is a false breakout (fake breakout) — a sign of stop hunting behavior. When encountering this signal: close the order immediately, preserving capital is more important than profit expectations.
3. Safe Trading Strategies for Beginners Only use leverage of 2x–5xAlways set stop-loss according to the middle Bollinger BandDo not enter orders when the Bollinger Bands are narrowingOnly enter when there is:A real breakout + increased volumePrice retest of the band + rejection of the breakoutOne order only risks a maximum of 1–3% of the accountNever go “all-in” no matter how good the signal is.
4. Final Advice for Newcomers If you are falling into the loop: burn account → deposit more → burn again Please stop. A contract is not a place to “try your luck”. It is a game: There is probabilityThere is disciplineThere is a methodThere is risk management Only reward those who understand the laws and know how to preserve capital before making profits.