Why do so many people still play in the cryptocurrency contract market despite frequent liquidations?

In fact, contracts are not meant for the average player.

1. Capital management must be up to standard. With leverage ranging from 0-100x, short-term losses are inevitable, and the risk per trade should generally not exceed 2%-3%, with aggressive players taking on 5%-8%. If the risk exceeds 8%-10%, adverse market retracements can reach 70%, and the average person's psychological breaking point is around 50%. Strict capital management must be enforced.

Many people prefer to trade with 5x or 10x leverage, operating at levels above 4 hours, where stop losses are generally set at 5%-15%. The single trade risk reaches 25%, and such an approach is tantamount to seeking death. To ensure risk levels while also maintaining high leverage, the time frame must be lowered to 1 hour, 15 minutes, or 5 minutes. The smaller the time frame, the fewer players can manage it; generally, the limit for average players is 1h-4h, while professional players can handle 5-15 minutes, and even professional players generally cannot manage the 1-minute level.

2. The trading system must be sound. Developing a trading system requires a long-term accumulation of trading experience. A successful indicator is not trading outside of the established model, with clearly defined conditions. This process requires continuous iteration and exposure to the trials of bull and bear markets. Given that it is leveraged trading with T+0 and frequent trades, one must prepare for the tuition of 90%x9. Many people start with hundreds of thousands to play, but they need to understand one thing: regardless of the initial capital, it is only enough to pay tuition once; there are still 8 more times to go. Therefore, it is essential to start with small amounts; a few hundred or a few thousand is fine. Do not increase capital just because of profits; withdraw profits and continue trading with small amounts. In the beginning, the system and operations will not be particularly refined, and many mistakes and unnecessary actions cannot be avoided. Many posts discussing losses seem meaningless to me; they are merely paying tuition once, without even touching the door, and the learning curve has not improved, which is no different from gambling.