2025-12-27 09:22:24

Why do some people always get liquidated in contract trading, while newcomers keep pouring in? Honestly, most people have never truly understood what contract trading is all about.

As soon as they see platforms advertising 5x, 10x leverage, their minds automatically jump to "This is a safe trading method." But in reality? With $10,000 in their account and a mental bottom line of losing no more than $500, they open a position worth $30,000. On the surface, it's 5x leverage, but the risk isn't calculated that way — you're actually exposing yourself to nearly 60% of your risk appetite to fight the market. The problem is, most people don't realize this and keep fooling themselves, thinking "My position is small, it's stable."

Those who truly understand contracts think completely differently. Contract trading isn't just about betting on the direction; the core is risk calculation and capital management. Profits often come from opponents taking on excessive risk in the wrong positions.

So, look at the trading style of professional traders. Most of the time, they are just waiting. They don't enter without a clear technical structure, and they don't place orders without a probability advantage. When they do trade, their goal isn't "hoping to get lucky and see how much I can make," but executing a trade with a clear risk-reward ratio.

The biggest challenge in contract trading is actually going against human nature — can you stay calm during market panic, and can you suppress greed during market hype? Should stop-losses be strictly enforced? It's not about regretting afterward. In terms of risk control, they usually keep single-loss limits within their capacity to bear, but once they step into a profitable pattern, they ensure the risk-reward ratio is significantly above 1:1.

Not every trade wins — but when you win, you must win enough.

Therefore, contract trading itself is not gambling. You get liquidated because you're using gambling mentality; some make money because they practice risk management. If you're still entering and exiting based on feelings or following emotions to add or reduce positions, contract trading will only keep draining your energy.

Trading isn't about staying up all night grinding; it's about knowing clearly when to enter and when to exit. Until you thoroughly understand the direction, position, and risk, any operation is just random gambling.

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NFTPessimist

· 5h ago

To be honest, most people haven't figured out how to calculate risk exposure at all. There are very few who can calmly cut losses. That's why the difference between professionals and retail investors is so big. Making money with contracts is essentially about equal probability, not luck. Emotional trading is doomed to fail, there's no debate about that.

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DegenMcsleepless

· 5h ago

Well said, most people are just fooling themselves. --- Finally, someone has seen through it—it's not the contract scammer, it's people digging their own graves. --- Wait, so my 5x leverage actually carries such high risk? I’ve always thought I was pretty stable. --- Professional traders are just waiting; retail traders are gambling. The difference is indeed huge. --- This anti-human nature part hits hard—every time it rises, I want to add to my position; every time it falls, I want to cut my losses. --- Contracts are like mirrors; what they reflect is how greedy you are. --- The concept of risk-reward ratio is the core—most people haven't even calculated it. --- Not staying up late to grind is correct, but I can’t sleep when I look at the market. --- It sounds right, but who can really implement it? It all comes down to intuition. --- Direction, position, risk—understanding these three thoroughly is how you make money. It sounds easy to say.

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TradFiRefugee

· 5h ago

At the end of the day, it's all about mindset; most people simply can't control it. This article hits the nail on the head—most retail investors are just fooling themselves. A profit-to-loss ratio of 1:1 or higher is the true logic of making money. Those who get liquidated haven't properly calculated their risk exposure, thinking that 5x leverage just equals 5x. Going against human nature is the hardest part; very few can stay calm during panic. Waiting for the right opportunity is much more difficult than frequent trading, and I have deep personal experience with this. Trading without a stop-loss discipline is just giving away money.

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0xDreamChaser

· 5h ago

Damn, this is my blood and tears story. Luckily, I’ve woken up now. This article hit home. I used to be the kind of person who got excited at the thought of leverage. It seems most people don’t take risks seriously; they just want to get rich quick. I understand now, stop-loss isn’t surrendering; it’s about staying alive to keep playing. Just waiting can make money? I feel like waiting is the hardest part. Forget it, I’ll take it slow. No more being controlled by margin calls.

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