There's a saying I keep telling myself: Discipline beats talent. This is not some motivational cliché, but a truth I’ve come to realize after seven years in the market.

I still remember the days when I first started trading contracts—doubling my position in three days, excitedly adding more. But by the fourth day, I almost lost it all. From heaven to hell in less than 24 hours. I can still recall that feeling—sweaty palms, a blank mind. I've seen too many people go through this roller coaster; some have completely exited after just one ride.

Later, I slowly understood that many people enter the contract market with the wrong mindset. They treat it as a quick way to get rich in a casino, rather than a trading arena supported by a solid methodology. The outcomes of these two approaches are entirely different.

**Position Management: Staying Alive for Tomorrow**

My current approach may seem conservative, even a bit foolish. I divide my capital into five parts, using only one part for each trade. I limit single-loss trades to within 2% of total capital, meaning even five consecutive losses would only cost 10%.

Someone asked me why I am so cautious. My answer is: because the market will always present unexpected situations. Black swan events, flash crashes, liquidity dries up—these are not "if" they will happen, but "when." The only thing you can do is survive long enough to let probability work in your favor.

Regarding leverage, I never use more than 5x. Stories about 10x or 20x leverage usually end in liquidation. High leverage is like a dagger—it can cut through butter but can also pierce your heart. The problem is, you often can't tell which situation you're in.

**In the face of trends, personal judgment is worthless**

The second iron law I learned is: Going with the trend is always the most profitable choice.

In an upward channel, I do only one thing—wait for a pullback and go long. No guessing the top, no bottom fishing—it's that simple. In a downward channel, I do the opposite—only short the rebounds. It may seem mechanical, but this mechanical approach has saved me more than once.

Those trying to trade against the trend usually share a common trait: they think they can see through the market. In reality, no one can. The trend is like an elephant—you can't block its path, and the last one to get trampled will be you.

**Under black swan events, discipline is the only safeguard**

In these seven years, I’ve experienced many tense moments. Each time, it was strict stop-loss and limited position size that gave me the chance to keep telling this story. I’ve seen too many smart people—whose technical analysis skills are ten times mine—still end up losing due to poor risk management.

And I, an unremarkable trader, have survived thanks to these seemingly clumsy rules. That’s the truth of the contract market: survival is more important than making money; stability is more crucial than explosive gains. Those methods promising quick wealth often lead to rapid bankruptcy.