Why do I emphasize not to play with contract leverage?

1. Trading is counter to human nature
Contracts amplify human weaknesses
If you're tempted to trade contracts, I want to ask how you're doing with stocks? If you're not doing well with stocks, then trading contracts is just asking for trouble. If you've made money in stocks, what kind of money is it? Short-term trading profits? Technical analysis gains? Or corporate profits?
If it's technical analysis, congratulations, you're one step closer to the contract you want. If it's other types of money, then it's still early to celebrate.
Using leverage in contracts will rapidly magnify your losses and gains. Without rich trading experience, you simply can't hold on. Don't delude yourself into thinking you're an investment genius; such thoughts only exist in your imagination.
If you can't do it yourself, is copying others' trades an option?
Simply put, playing with contracts isn't suitable for ordinary people. Some might say, I don't trade myself, I copy others, I follow the big players. As long as the win rate exceeds 50%, isn't it just making money in the long run?
People who ask questions like this show they've given it some thought. I can tell you clearly, it's not feasible.
Why?
The most important factor is position management. Professional traders who are suitable for trading contracts have undergone systematic trading training, understand clear position management and cost control. Newbie copy traders often have the problem of going from zero to full position in one second.
In such cases, just one wrong judgment in following a trade can wipe out your capital, even leading to liquidation, leaving no chance to continue.
If you still hold onto a glimmer of hope that you can control your position, ask yourself—are you disciplined enough?
Most people probably aren't.
As someone with experience, I have deep insights.