Why is the liquidation rate in the crypto contract market 99%, yet there are still people frantically sending money?
"Do you think low leverage is safe? Wrong!
90% of people can't even calculate the 'real leverage'!"
You are not losing to the market; you are losing to yourself.
Every day countless people face liquidation, but why do some still keep coming back? Because — those who are liquidated support those who make money.
'Leverage' is not what you think.
The '5x' and '10x' shown by exchanges are merely the platform's risk control indicators and have nothing to do with your actual risk!
Real leverage = your position / your stop-loss funds.
For example, if your principal is 10,000 USDT, opening 10x leverage but setting a stop-loss of only 100 USDT means your real leverage is actually 100x!
90% of people die in these 3 traps:
'Anti-single'
'All-in'
'Emotional averaging down'
—— You face liquidation because you gave the market the chance to kill you.
Contracts are not investments; they are a 'body-snatching' game.
Question: Whose money is actually made in contracts?
Answer: The money of those who were liquidated!
Bull market? Bear market? Doesn't matter!
You can make money whether the market rises or falls; the key is whether you can survive until the 'money-picking moment.'
Bull market: Retail investors FOMO chase the highs, you short at the top.
Bear market: Retail investors panic sell, you buy the dip.
'Risk manager' vs 'dreamer'
Dreamer: 'This coin can increase by 100 times! Go all in!' (Result: liquidation)
Risk manager: 'This position has a risk-reward ratio of 3:1, test order with 5% position, stop-loss is clear.' (Survive, wait for opportunity)
The secret of professional traders:
"80% of the time in cash, 20% of the time picking money."
—— You are not here to trade; you are here to wait for others to make mistakes.
The same strategy leads to losses for 80% of people — because of human nature.
"If you can't control risk, don't play contracts — otherwise, you will be the 'body' in others' eyes."
If you really want to make money, first learn 'not to get liquidated.'
Otherwise, you will always be someone else's ATM.
