The phenomenon of liquidation in the contract market is shocking, but have you ever wondered why so many people continue to rush forward?

The problem has never been platform design, but rather the traders' own misunderstanding of the rules.

It seems like 5x leverage, but in practice, it's a completely different story. An account with $10,000 in funds opening positions of $30,000 or $50,000—on the surface, following the rules, but in reality, playing with dozens of times the leverage. This self-deceiving position sizing will eventually pay the price for greed. The root cause of liquidation lies here.

How do truly knowledgeable traders operate? They treat contracts as serious risk battles, not as ATMs. They spend 70% of their time waiting—not idly, but analyzing. When the market is unclear, they can sit tight even with no positions—this discipline itself is a form of competitiveness.

Once they decide to act, their logic must be meticulous, and their entries must be precise. Every profit they make essentially comes from the principal of those who are liquidated on the other side of the market. Recognizing this is key to understanding that this is not a zero-sum game illusion.

Regarding the balance between stop-loss and profit: a single loss exceeding 5% of the account must trigger a stop-loss, preventing repeated mistakes. But when the direction is confirmed and the logic is sound, the profit target should be at least 2-3 times the risk; otherwise, trading fees will eat up most of the gains.

Those traders who constantly mess around in the market are often worn down by trading fees—frequent entries and exits, emotional trading, staying up late to operate. It may seem like trading, but in reality, they are just contributing fees to the platform.

To survive in contracts, there are only two words: go against human nature. Stay calm when others panic, hit the brakes when others get overexcited. This is not about cultivation; it’s a survival rule.