💥 The Awakening After Losing 1 Million: The 3 Hidden Pits in Contract Trading Are the True Culprits for Harvesting Retail Investors!
Brothers, let's start with the conclusion: Contracts are not opportunities, they are a battlefield.
I personally paid 1 million in tuition to understand the tricks inside—if someone had revealed these pitfalls earlier, I could have avoided 3 years of detours.
Many people might have had this experience:
After opening a position, the market immediately moves against you;
After finally cutting losses, the price instantly moves in the direction you expected;
The general direction is correct, but the account still blows up…
Don’t think it’s just bad luck; in fact, you stepped into the hidden pits laid out by the exchange.
Hidden Pit 1: Funding Rate is the "Signal to Cut Leeks"
Most people only consider it as a fee, but it’s actually a clear signal from the market makers.
If the funding rate is greater than 0.12% for two consecutive days, it indicates that one side's position is overly crowded, and it's highly likely to be harvested next.
Experience: When you see this situation, don’t hold on stubbornly! Reversing often presents an opportunity.
Hidden Pit 2: The "Hidden Door" of Liquidation Price
Do you think 10x leverage = drop 10% to get liquidated? Wrong!
The exchange will add a forced liquidation fee, so the actual liquidation line is 1%-1.5% earlier than you think.
The result is that you think there’s still room, and suddenly it’s all wiped out.
Hidden Pit 3: High Leverage is a Slow Poison
100x leverage is indeed exciting, but fees and funding costs are calculated based on the enlarged position.
Holding overnight means your profits get completely drained.
Remember: High leverage should only be used for quick in-and-out, never hold positions overnight.
Two Life-Saving Techniques:
1️⃣ Roll Over 60% of Profits
Don’t be greedy; rolling over your entire position is suicide. Only roll over 40%, and the remaining profit is your chip to stay alive.
2️⃣ Prevent "Pointed Explosions"
Why do you always get liquidated at support levels? Because your leverage and stop-loss lines are crystal clear to the big players, and they will precisely take you out.
Finally, let me share my thoughts:
Short-term contracts: Quick in and out, profit from volatility;
Medium to long-term spot: Lock in value, resist risks.
In the next issue, I will break down a strategy for "Reverse Orders," teaching you how to fight back against the big players and gradually earn back the money you lost.
