Why is the contract liquidation rate 99%, yet there are still people frantically sending money?
"You think low leverage is safe? Wrong!
90% of people can't even calculate 'real leverage'!"
You are not losing to the market, but losing to yourself.
Every day countless people get liquidated, but why do others keep coming back? Because — those who get liquidated support those who make money.
Leverage is not what you think it is.
The '5x' or '10x' displayed by the exchange is just a risk control indicator of the platform and has nothing to do with your actual risk!
Real leverage = your position / your stop-loss funds.
For example, if your principal is 10,000 USDT, and you open 10x leverage but set your stop-loss at only 100 USDT, then your real leverage is actually 100x!
90% of people die in these 3 traps:
'Anti-single'
'All in'
'Emotionally increasing positions'
You get liquidated because you gave the market the chance to kill you.
Contracts are not an investment; they are a 'body picking' game.
Question: Who's money is actually made from contracts?
Answer: The money of those who got liquidated!
Bull market? Bear market? Doesn't matter!
You can make money in both rising and falling markets; the key is whether you can survive to the 'money picking moment'.
Bull market: Retail investors FOMO and chase high prices, you short at high points.
Bear market: Retail investors panic and sell at a loss, you buy low.
'Risk Manager' vs 'Dreamer'
Dreamer: 'This coin can increase 100 times! Go all in!' (Result: liquidation)
Risk Manager: 'This position has a risk-reward ratio of 3:1, try a 5% position, with a clear stop-loss.' (Survive and wait for opportunities)
The secret of professional traders:
"80% of the time is spent in cash, 20% of the time is spent picking up money."
You are not here to trade; you are here to wait for others to make mistakes.
With the same strategy, 80% of people still lose money — because of human nature.
"If you can't control risk, don't play contracts — otherwise, you will be seen as a 'corpse' by others."
If you really want to make money, first learn to 'not get liquidated'.
Otherwise, you will always be someone else's ATM.