Eight Years of Experience Summary: These Pitfalls in Contracts You Must Know!
Do you always feel like you've identified the right direction, but as soon as you open a position, it goes against you, and as soon as you close a position, it takes off? The money you were supposed to make ends up making you doubt life?
Today's hardcore guide to avoiding pitfalls will help you uncover the hidden rules of the contract market and save you from paying the intelligence tax!
Do you think you're trading Bitcoin? In fact, you're gambling with your life!
Contracts are not buying and selling coins but betting against the exchange. The money you make comes from other gamblers' losses; the position you liquidate becomes someone else's profit.
Going Long = Betting on Price Increase, Going Short = Betting on Price Decrease
But why do you still get liquidated even when you predict the direction correctly? Because the rules of the exchange are far darker than you think...
The 3 Major Secrets the Exchange Doesn't Want You to Know
Funding rate is not a transaction fee but a "harvesting signal"
Rate > 0: Longs give money to Shorts
Rate < 0: Shorts give money to Longs
Practical Tip: If the rate is continuously > 0.1% for 3 times, do not go long! It's highly likely that the exchange is going to harvest retail traders!
Liquidation Price ≠ Theoretical Price, the exchange will cut you one more time!
You think a 10x leverage with a 10% drop means liquidation? Wrong! The actual liquidation price is closer because the exchange will charge an extremely high forced liquidation fee, ensuring your margin gets wiped out!
High leverage is a double-edged sword; the fees can eat away at your principal!
100x leverage making 100 times? Naive! The opening and closing transaction fees are calculated post-leverage, and high-frequency trading can bring your principal to zero!
Core Strategy: How to Avoid Being Harvested?
✅ Use high leverage only for short-term trades
✅ Use only 50% of your profits to roll over
✅ Avoid "liquidation concentration prices"
Do you know why there’s always a wave of "false breakouts" before a big market movement that sweeps stop-losses? The real tricks are hidden outside of the candlestick charts...
Want to know more? Let you fight back against the exchange!