How to avoid liquidation in contract trading and pursue high returns?
Leverage is a double-edged sword.
With 10x leverage, a 10% fluctuation can double your investment or wipe it out; high leverage = high risk.
Countermeasure: Beginners are advised to use ≤5x leverage and reserve margin for additional purchases.
The logic of the market maker's harvesting.
Large funds specifically target stop-loss orders; the areas of concentrated long/short positions are easily detonated.
Countermeasure: Avoid heavy positions following the crowd; observe key support/resistance levels before entering the market again.
Survival rule: Safety > Profit.
Practice with the smallest unit (e.g., opening a position with 1U), set a 3% stop loss, and consider a small loss as tuition.
Before achieving stability, learn to control drawdowns rather than chasing high profits.
Core experience > Technical indicators.
Candlesticks and patterns are just the basics; the key is mindset:
Cut losses promptly when losing; do not hold onto losing positions;
Take profits in batches when winning; do not be greedy.
The breaking point for retail investors.
Market makers have an information advantage, retail investors need to be more flexible:
Trade with light positions to test the waters, and add to positions after confirming trends;
Avoid high leverage and high position volume 'death points'.
Summary: Accumulate experience through low-cost trial and error, enforce strict risk control, and patiently wait for high-probability opportunities. The dream of sudden wealth is unrealistic, but discipline can help you outperform most people.