Crypto Contract: Why do most people lose money, yet some consistently profit?

Liquidation is not fate, but a gap in understanding

First Level of Understanding: Leverage is not the devil, losing control is

Many people think "low leverage = safe", but the real risk is not in the leverage multiple, but in position management and stop-loss discipline

Correct Leverage Thinking

Leverage = Tool, not an excuse for gambling

5x leverage ≠ 5x risk, the real risk depends on your stop-loss

Each trade should not exceed 10% of the principal**, total risk exposure controlled within 20%

Leverage amplifies not profit, but your trading logic

If you do not have a clear entry and exit strategy, even 1x leverage can lead to liquidation

Second Level of Understanding: The essence of contracts is "probability games"

The market does not target you, but your emotions do

Professional Trader Mindset

1. Profit and loss come from the same strategy

2. Do not predict the market, only respond to it

3. Long-term positive expected value > short-term windfall

Why do most people lose money?

Overtrading (always trying to catch every fluctuation)

Holding positions without stop-loss (hoping the market "breaks even")

Emotional trading (FOMO chasing highs and panic selling)

Fixed stop-loss (3%-5%), let profits run

Wait for high-probability opportunities, rather than frequent trading

Keep a trading journal, optimize strategy

Third Level of Understanding: How to find "high win-rate opportunities"?

The market will tell you when to enter, not your intuition

Three types of high-probability trading opportunities

1. Liquidity exhaustion point (sudden decrease in trading volume, prices prone to sharp fluctuations)

2. Key support/resistance breakout (validated by trading volume)

3. Market extreme emotions (panic selling or FOMO chasing)

Ultimate Strategy: How to make profits sustainable?

80% of the time waiting, 20% of the time trading

Risk-reward ratio of at least 1:2 (stop-loss 1%, target 2%)

Control drawdown (daily loss not exceeding 2% of total capital)

Final Question: What type of trader do you want to become?

The market will not change, the only thing that can change is yourself

Now you have two choices:

Continue to trade based on feeling, hoping for "luck"

Build a system that makes profit inevitable

Key observations: ETH BTB SOL XRP