Participating in prediction markets or on-chain perpetual contracts often involves a critical point that is easily overlooked: never approach it with a gambling mindset.

To put it plainly, if you lack confidence in your self-control, avoid getting involved early. This is not alarmist talk but the painful lessons learned by countless people.

Before entering, you must think through your hedging plan. Use strategies to lower participation costs, and more importantly, set proper stop-losses to protect your principal — this is the top priority, and profits are secondary. Many beginners get the logic backwards, and the results are predictable.

Look at those influencers who like to showcase their achievements, stories like "I earned points, made @E5@ U." I've heard many such stories. But they also have moments of failure; those stories are just less often shared openly. The truth of the market is that no matter how good you are at storytelling, risks will never bypass you because of your fame.

So, the last question to ask yourself before entering: Am I trading, or am I gambling? The answer is very important.