Why do most people lose money and only a few make money in contract trading? Trading is self-destructive and goes against human nature. Most people hold on to their losses and are satisfied with making a little profit and then quickly running away, which leads to deeper and deeper recover losses. It is worth improving your own trading strategy, with stop loss being the top priority and good position management. It is crucial to have a good risk-reward ratio, with most being 1:3, while many experts use 1:20. You can also reduce position or take profits to pursue even greater profits after making a profit! It is essential to develop your own trading system and strictly follow it.