Why does trading contracts always lead to liquidation? Ten years of trading insights tell you that liquidation is definitely not due to "bad luck"!
Stop blaming market fluctuations! Your liquidation happens because you haven't understood these three hard-core truths:
🔥 Leverage ≠ Risk, Position Size is the Lifeline!
Using 100x leverage is not scary; what's scary is going all in! Students use 20x leverage, only utilizing 2% of their capital each time, and have zero liquidations in three years. The secret is controlling real risk!
🔥 Stop Loss is not a loss; it is the ultimate insurance for your account!
In the March 2024 crash, 78% of those liquidated lost more than 5% without a stop loss! Experts never let a single loss exceed 2%, installing a "circuit fuse" for their accounts!
🔥 Rolling positions is not gambling; compound interest is the way to go!
Laddered Position Building Method: Start with 10% for trial and error, increase position upon profit! If BTC rises by $7,500, increase position by only 10%, but the margin of safety increases by 30%!
Institutional-level risk control model revealed:
Position ≤ (Principal × 2%) / (Stop Loss Range × Leverage Factor)
For example, with a principal of 50,000 and 10x leverage, the maximum position is only 5,000!
Moreover, there are practical cases in 2024 where a principal of 50,000 made a million through two trend trades, with returns over 1900%!
Deadly traps revealed:
Holding a position for 4 hours, liquidation rate soars to 92%!
High-frequency trading monthly loss of 24% of principal!
Greed without taking profits leads to an 83% profit drawdown!
The ultimate mathematical formula tells you: as long as the win rate is 34%, with stop loss at 2% and take profit at 20%, an annualized return of 400% is easily achievable!
Ultimate Rules:
✔ Single loss not exceeding 2%
✔ Annual trades not exceeding 20
✔ Profit-loss ratio of at least 3:1
✔ 70% of the time waiting in cash for opportunities
Contract trading is not gambling; it is a probability game! Control losses, and profits will naturally run! Defeating emotions with discipline is the only path to sustained profitability!
