Why do most people continue to incur losses, while a few can achieve stable profits?

In the cryptocurrency contract market, a common phenomenon is that a large number of traders fall into a vicious cycle of 'liquidation - reinvestment - liquidation' again. The fundamental reason lies in the cognitive bias regarding leverage and risk management.

Cognitive Misunderstanding: Nominal Leverage vs. Actual Risk

Many traders are misled by the platform's promotion of '5x, 10x' nominal leverage. For example, with an account equity of 10,000 U, the single loss tolerance is 500 U (5%), but they open a position worth 30,000 U. At this point, although the nominal leverage is 3x, the actual risk leverage has reached dozens of times. Any regular market pullback can lead to forced liquidation, resulting in a permanent loss of principal.

Professional Thinking: Contracts as Risk Management Tools

In contrast, professional traders view contracts as a precise risk management tool rather than a speculative tool. Their profits come from the liquidity premiums and losses contributed by irrational traders during market sentiment fluctuations.

Operational Rhythm: The Art of Waiting vs. Frequent Traps

The operational rhythm of professional traders is '70% waiting, 30% trading'. They patiently wait for high-probability trading opportunities, and once they act, they strive for precision. Most losers, on the other hand, fall into the trap of 'over-trading', exhausting their energy and principal in chaotic and frequent operations, ultimately becoming 'fee contributors' to the platform.

Survival Rule: The Core is 'Restraint'

To survive in a high-leverage market, the only rule is 'restraint'.

Counter-Human Nature Operations: Stay calm during market panic and look for opportunities; remain cautious during market enthusiasm and avoid risks.

Scientific Profit Strategy: Once a floating profit appears, use trailing stop-loss or staggered take-profit strategies to let the profits grow fully, rather than locking them in too early.

The essence of contract trading is not gambling, but a game based on probability and discipline. Those who view trading as gambling are participants without any strategy and blindly over-invested. True winners rely on a validated trading system and strong execution.

Personal exploration is certainly valuable, but in the complex financial market, experienced guides can help you establish the correct trading framework, avoid common traps, and move steadily towards profitability.