Liquidation is as common as daily meals, why do contracts still make countless people gamble their fortunes?

In the crypto world, the tragedy of liquidation occurs every day; some lose their entire fortune overnight, while others leave in silence.

Many newcomers are misled by influencers, thinking that 5x or 10x leverage is small, not realizing that they have mistakenly taken the platform's safe leverage as their own protective charm! The truly deadly risk leverage must be calculated using stop-loss and principal.

The correct approach is to open positions in stages, using a maximum of 10-20% of the principal each time, controlling total positions to 2-4 times the principal, and the stop-loss risk must not exceed 20% of the principal. Most of the time, you may even need to stay out of the market, waiting for the right opportunity.

Some may ask: what's the point of doing contracts if it's so troublesome? This is a huge mistake! In the speculative world, contracts are the most flexible "wealth leverage"! U-based is definitely not a useless option; when a bear market arrives, is it the safety of coins or the safety of U?

The core of contracts is "trading risk"; here, you can distrust technology, distrust market makers, and distrust K-lines, but you must thoroughly understand the word "risk"! How is risk calculated? How is risk controlled? How can money be made in risk? This is the key to survival.

Do you think the money made from contracts comes from nowhere? When you use 3x leverage to turn 100% profit into 300%, the extra money actually comes from others' liquidations being given to you as blood capital.

To catch this money, the first step is not to become that unfortunate victim of liquidation! Viewing the market from a risk perspective is completely different from the average person.

While those trading coins can stubbornly wait for price increases, contract players cannot afford to do the same; they will be out in less than three rounds!

The truly profitable contract players are the ones who go against human nature. When you feel the urge to go all in or increase your position, remember: go against human nature.

Those who make big money all feel like they are "picking up money", but the premise is — when the opportunity arises, you must be alive and have capital!

Trading contracts is like dancing on the edge of a knife; behind what seems like simple buying and selling lie countless deadly traps.

Just like on February 14, 2022, many teams used a strategy of "shorting most coins while timing long positions on BTC for hedging". It sounds simple, but in actual operation, how is the stop-loss set? How to balance long and short? How to handle technical coins?

In trading, on the surface, it's just buying and selling, but behind it are countless experiences built with real money.