Why do 99% of people lose when trading contracts? The correct way to use high leverage, which 90% of people get wrong!

"Don't touch contracts when trading cryptocurrencies!" — You've definitely heard this before. But the truth is: contracts themselves are not traps; using the wrong methods is the real pitfall.

What you think of contracts: A shortcut to getting rich

Betting everything on 100x leverage, turning a BMW into a motorcycle overnight

Opening positions based on "feelings" from K lines, winning against club models, losing and having to work in the field

Forever caught in the dead cycle of "stop when breaking even"

What experts see in contracts: Nuclear weapon-grade tools

Main trend accelerator: When BTC's weekly chart breaks through key resistance, 50x leverage captures trend profits with 10 years of traditional market returns

Hedging artifact: Spot holdings + contract short positions for hedging, even when a black swan event occurs, you can retreat unscathed

Precise targeting: Using 5% of your capital to bet on 20% volatility, clear stop losses, and a risk-reward ratio > 3:1 is the right expectation

The painful truth: 90% of liquidations are ruined by these 3 points

Leverage ratio ≠ return rate

Emotional trading > systematic trading (90% of ad-hoc decisions are money-losing)

Positions without stop-loss = time bomb (only realizing after liquidation: could have only lost 5%)

My survival rules in practice (3 years without liquidation)

Treat the contract account as "special forces": total capital ≤ 10%, single position ≤ 2%

Only take action in two situations:

Confirmation of major trend (Daily MACD golden cross + volume breakout)

Extreme panic/greed moments (Fear and Greed Index 85)

Must set stop-loss iron rule: set stop-loss point within 5 minutes of opening a position, move stop profit never below the cost price

Remember: Leverage is a surgeon's scalpel for experts, but a meat grinder for novices.

Is your current contract strategy really "investing" or "gambling with your life"?

If you are also a tech enthusiast and are delving into technical operations in the crypto space, consider following the Gongzhong account "Crypto General Instructor", where you will gain the latest crypto intelligence and trading skills.