When it comes to contracts, many people treat them like a monster, harshly criticizing bloggers who introduce them. But that’s unnecessary. A contract is just a tool — the investor is the one who uses it. Like a sword, it can harm or protect.

If spot trading is like sticks and swords, then contracts are like machine guns and cannons — both are tools. If used properly, they can greatly improve capital efficiency and profitability. If used improperly, they bring bigger damage. Therefore, before using them, one must thoroughly understand the tool: how contracts are designed, their features, risks, pros and cons, and applicable scenarios. Simulation training is essential before real-money trading begins.

However, in reality, many investors don’t understand the product at all and jump straight into live trading. Sometimes they profit, but more often they lose money. Then they blame the tool and spread negativity, but this is entirely self-inflicted. Have you seen someone who has never flown a plane successfully pilot it with just a manual? Using your hard-earned money as capital in this way is reckless and leads only to destruction. Learning the basics and doing simulation training is essential — you must take responsibility for your money.

For beginners, a large amount of practice is critical. Don’t pay tuition with real money. Start with short-term timeframes like hourly or 15-minute charts. Only through enough practice can you quickly accumulate experience.

Simulated trading is not about blind, frequent trading — it must have a purpose:

1. Get familiar with trading rules and asset volatility patterns;

2. Build your own trading system in simulation, understand yourself, and develop your trading philosophy and entry/exit rules;

3. Practice maintaining the right trading mindset;

4. Identify causes of losses, common personal mistakes, and how to correct them;

5. Review trades, adjust system rules and parameters, and reflect.

During the simulation phase, focus on trading behavior, recognize your own habits, select a suitable trading system and timeframe, set parameters, evaluate profitability, and monitor your mindset — not the profit or loss. Even in the early stage of real trading, focus on the process rather than short-term results. Correct strategy, system, and training are more important than short-term gains.