A couple of days ago, I saw LIGH at the 1.7 level, and I immediately sent a signal to a friend—short it. So what happened? His account had already bottomed out, and he couldn't even scrounge up 100U to trade. Now that the price has dropped, this wave of profit would be enough to buy a car, but unfortunately, it has nothing to do with him.

This really made an impression on me.

In this contract trading business, the scariest thing isn’t misreading the market, but having no capital when the opportunity comes. I always emphasize this to my friends who trade aggressively: don’t blow up your account. No matter how tempting the market looks, always leave yourself a way out—margin, emergency funds, whatever, just make sure you have some U on hand to use at any time.

Otherwise, you’ll end up like this guy, watching the meat get served right to your mouth, but you just can’t open your mouth to eat.

You can never say enough about position management. There’s always another opportunity in the market, but if you get liquidated, you’re out of the game for good.