Have you ever wondered why in contract trading, most people lose more than they earn?

Many experienced traders have this feeling: setting stop-losses, only for the price to hit right at that moment; not setting stop-losses, but then getting stuck at your liquidation price and going in circles. It seems like you're being "haunted."

But this isn't a luck issue; ultimately, it's a cognition problem.

You think you're battling the market, but in reality, you're using a set of trading rules that are extremely unfavorable to yourself. Your position size, leverage multiple, liquidation level—these data points are essentially transparent. What’s the result? Small gains when you win, and outright liquidation when you lose.

Making ten or twenty profits may seem calm and steady, but one misjudgment can wipe out all the hard-earned profits in an instant. This is the true root of long-term losses.

It's not that you can't understand the trend, but that the entire profit and loss structure is flawed from the start. When the combination of position size and leverage is inherently unreasonable, no matter how advanced your technical analysis is, it can't save you. That’s why some people lose money year after year, while others achieve stable profits—the difference lies in whether they have established a trading system that benefits themselves.