Why do some people still lose everything even with stop-losses?

The truth about liquidation:

🔥 Liquidation is not due to poor skills, but rather the flaws of human nature!

Many people believe that liquidations occur due to not using stop-losses, but the truth is: even with stop-losses, weaknesses in human nature can lead you step by step towards liquidation. 80% of liquidations in the market stem from these two psychological states.

1. Overconfidence after consecutive wins: From guaranteed profits to holding until death.

After winning three times in a row, 90% of people will experience loss aversion:

Typical behavior: Originally aiming to take profits at 20%, but when there is a sudden 5% pullback, they feel reluctant, thinking "it's just a shakeout", and not only do they not cancel their orders but they also increase their positions;

Path to liquidation: Going long on ETH at 2500, rising to 2600 without selling, holding when it pulls back to 2550, adding leverage when it drops to 2500, and finally liquidating at 2450—clearly, they could have made 100U, but ended up losing 500U.

2. Chasing losses after consecutive losses: "Since I've lost anyway, I might as well go all in."

After three consecutive losses, human nature triggers 'risk numbness':

Deadly move: Shorting BTC and losing 2000U, thinking "since I've lost so much, I might as well open 100x leverage and gamble", resulting in liquidation when the market moves 1% against them;

Data evidence: Exchange data shows that after three consecutive losses, the probability of users opening 100x leverage increases sevenfold, with 95% ultimately liquidating.

⚠️ The ultimate paradox for traders: Skills are auxiliary, human nature is fundamental.

No matter how excellent the strategy, it fears the loss of control of human nature: there was a trader who used a MACD golden cross strategy to win 10 trades in a row, but after losing the 11th, they were unwilling to accept it and adjusted their stop-loss from 3% to 10%, ultimately liquidating;

The essence of liquidation is the lack of "anti-human nature ability": those who can stop after consecutive wins and halt after consecutive losses are the survivors in the contract market.

💡 Three practical rules to conquer human nature:

1. Profit "33% rule": After winning three trades in a row, force yourself to take a day off and withdraw 30% of the profits to avoid overconfidence;

2. Loss circuit breaker mechanism: If the daily loss exceeds 10% of total capital, shut down; it's better to miss out on opportunities than to gamble with a reckless mindset;

3. Write an anti-human nature diary: Before each trade, write down "if I’m wrong, I will stop-loss"; after liquidation, reviewing the diary will reveal that 90% of losses were due to knowingly taking risks.

In conclusion: The contract market is not a battlefield of skills, but a battleground of human nature. Those traders who can survive long-term do not necessarily know K-lines better than you, but they understand restraint better than you; after all, in the face of leverage, human weaknesses are amplified 100 times.