Why do you always get liquidated when trading contracts?

Clearly following the 'experts', but always losing your capital? In fact, 90% of liquidations are due to not understanding these 5 key issues! 1. Too high leverage, dying too quickly Core issue: Newbies always want to 'double their money in one shot', opening positions with 50x or 100x leverage with their entire account, resulting in liquidation with just a slight market fluctuation of 1%-2%. Data comparison: | Leverage Ratio | Allowable Fluctuation Range | Liquidation Probability | | 5x | 20% | Low | | 10x | 10% | Medium | | 50x | 2% | Extremely High | Correct practice: Newbies are advised to use 3-5x leverage, survive first before talking about making money! 2. No stop-loss, holding on until the end Classic death method: - "Just wait, it will definitely go back up!" → As a result, it keeps falling deeper until liquidation. - "I've already lost 50%, cutting losses is too painful!" → In the end, loses 100%. Correct practice: - Fixed stop-loss: Set a stop-loss immediately after opening a position (e.g., 3%-5%). - Moving stop-loss: Gradually move the stop-loss line up after gaining profit to lock in profits. 3. Full position gamble, risking everything Newbie common mistake: - "Opportunities are rare, All in!" → As a result, the market reverses, directly leading to liquidation. - "I’ll just play this one round, if I make money I’ll stop." → Usually ends up losing everything. Position management formula: `Maximum single position = Capital × 2% / Leverage Ratio` (Example: 10,000 USDT capital, 10x leverage → Single position not exceeding 200 USDT) Correct practice: - Do not open a position exceeding 5% of total funds each time. - Diversify trades to avoid a single trade determining life or death. 4. Emotional trading, chasing highs and cutting losses Typical performance: - FOMO (Fear of Missing Out): Seeing a surge, chasing prices high → Resulting in losses. - Panic selling: Fear during a crash, selling at low prices → Just sold and the price rebounds. Data statistics: > 80% of liquidations occur during market volatility, with newbies making mistakes due to emotional loss of control. Correct practice: - Develop a trading plan and strictly execute it. - Avoid staying up late monitoring the market to reduce emotional interference. 5. Not understanding the tricks of exchanges, getting 'spiked' and liquidated Common tactics of exchanges: - Spike: Price suddenly plummets/rises, triggering a large number of stop-loss orders and then quickly recovering. - Slippage: During extreme market conditions, the actual execution price differs greatly from expectations. Correct practice: - Choose mainstream exchanges. - Avoid trading during extreme market conditions (such as Federal Reserve meetings, large liquidations). #美国加征关税