The truth about 90% of people’s contract liquidations
Do you think liquidation is due to sudden market changes? Wrong! It’s because you pressed the 'self-destruct button'. After reading this, you'll realize all your past operations were actively seeking death.
1. Leverage is not the killer, the position is
Fatal misconception: '100x leverage = high risk'
Truth: 100x leverage + 1% position = actual risk = 1x leverage full position
Case study: A professional trader uses 50x leverage, but single position ≤ 0.5%, with no liquidation for 3 consecutive years, annualized return over 300%
2. Stop loss is not admitting defeat, but rather a 'resurrection armor'
In the 2024 May 19 crash, 83% of liquidated accounts had one thing in common: they held on despite losses exceeding 10%
