Why is the crypto market so addictive? To put it plainly, the first thing it feeds you is hope.



But in reality, most people don't understand the true nature of leverage trading.

When the platform shows 5x, 10x leverage, do you really think you've opened a position with 5 times the amount? Consider this example: an account with 10,000 USDT, losing 500 USDT will result in liquidation. Yet, you insist on opening a 30,000 USDT position. On the surface, it looks like 5x leverage, but in reality, you're risking 60x to gamble with your life. Many haven't even calculated this properly and still think they can make guaranteed profits.

Anyone who has traded futures understands one principle: the essence of this is risk hedging, not speculative gambling. Where do your profits come from? From others' liquidation losses. Therefore, professional traders spend 70% of their time waiting; when the market isn't right, they stay on the sidelines. As soon as they act, they aim precisely at the target points for profit. Ordinary people, on the other hand, are constantly messing around in the market.

To win in futures trading, there are only two core words: go against human nature. When others panic, you must stay calm; when others are greedy, you need to take profits. Stop-loss must be rigidly enforced, with a maximum loss per trade of 5%. Conversely, when you profit, you must be more decisive than anyone else to cut and run. Take profit should be at least twice the stop-loss.

Some say futures trading is just gambling? That's not correct. You get liquidated because you trade based on feelings, while those who make money do so through logical calculations. The difference is that simple.

If you're still trading based on intuition, it's better to stop early—you can dream of earning everything in your sleep.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 3
  • Repost
  • Share
Comment
0/400
MEVictimvip
· 11h ago
Exactly right, it's that feeling of your brain flooding as soon as you leverage up, always thinking you're a genius trader, but a single pullback can wipe you out.
View OriginalReply0
GateUser-afe07a92vip
· 11h ago
That's right, but too many people are fooling themselves, really thinking that 5x is truly 5x.
View OriginalReply0
ser_we_are_earlyvip
· 11h ago
That's right, most people are indeed here to gamble.
View OriginalReply0
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)