At 3 AM, the cold light from the phone screen hits Old Zhang's face - he just received a liquidation message from the exchange, and his 200,000 capital instantly went to zero. This is already the third time this year he has been forcibly liquidated, but the next day he silently deposited another 50,000 into his account, preparing to fight again…

This is not an isolated case. Open any contract community, and the screen is filled with the celebration of 'doubling overnight', but in the corners, countless liquidators lie in silence. Clearly knowing this is a 'man-eating' game, why do so many people still fly into the flames?

1. Gambler's psychology: In the face of the temptation of getting rich, no one thinks they are leeks

"10 times leverage, a 1% fluctuation means a 10% profit" - The exchange's advertisement precisely hits the weakness of human nature.

Last year's bull market saw someone showcase their contract account: turning 5,000 in capital into 800,000 in just 12 hours. Such stories spread virally in the community, making everyone delusional: 'If he can do it, why can't I?'

But no one tells you that the 'big shot' showcasing their trades may have opened 10 accounts, with only 1 betting on the right direction.

Survivorship bias + leverage temptation constitutes the most deadly trap in the cryptocurrency circle.

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2. Zero-sum game: Every penny you earn is the blood and tears of someone else's liquidation

In May 2024, Bitcoin dropped 8% in half an hour, with a total liquidation of 320 million dollars across the network. Someone wailed in the group: 'I just added 10 times leverage to bottom-fish, and I got liquidated…'

And at this moment, professional traders are already laughing coldly: 'Finally waiting for the long positions to be liquidated, it's my turn to pick up the bloody chips.'

The contract market is a hellish battlefield:

- Little White looks at K-line and fantasizes about getting rich

- The dealer precisely targets the liquidation line

- The exchange makes money from transaction fees

There is no win-win here, only naked harvesting. Those KOLs teaching you 'winning strategies' may be waiting for you to enter the market as fuel.

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3. Anti-human nature game: Those who survive are all 'cold-blooded animals'

The fiercest trader I have seen has set three iron rules for himself:

1. The single stop-loss should not exceed 5% of the principal

2. Never operate between 2-4 AM

3. Withdraw 50% of profits immediately

He said: "In the contract market, those who act on emotions are dead."

But what about ordinary people? When it drops, they hold on through thick and thin; when it rises, they chase high; when they lose their cool, they go all in with 100 times leverage. Those big influencers shouting on Weibo have long grasped the psychology of retail investors - the more you want to recover your losses, the easier it is for the dealer to cut you off.

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4. Dark forest rule: What you think is the bottom may be the fish pond of the dealer

In 2023, the Trump concept coin surged 200%, with 400,000 retail investors following the trend to go long. As a result, the project party suddenly withdrew the liquidity, and the price dropped to zero in just 3 minutes.

Old leeks all understand:

- Sudden good news? It might be a trap for you

- Everyone on the internet is bullish? Be careful of a double explosion in both long and short positions

- Pinbar market specifically treats disobedience

In this market, **technical analysis is not as good as understanding human nature, and watching news is not as good as watching fund flows.**

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5. Blood and tears lessons: Remember these 4 rules to survive

1. Do not exceed 3 times leverage (100 times leverage is seeking death, not investment)

2. Divide the principal into 10 parts (use only 1 part each time; even if you blow 9 times, you can still recover)

3. Lock in profits immediately (if you earn but don't withdraw, you'll eventually give it back)

4. Stay away from contract communities (many boast, but those who genuinely make money are quietly profiting)

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Conclusion:

The most ironic truth in the cryptocurrency circle:

> Those playing spot earn money during cycles

> Those playing contracts earn money from human nature

> The exchange makes money from everyone

So the next time you want to open a contract, ask yourself first:

Why do you think you are not part of that 90% of fuel?

(Follow me for next issue revealing the 18 tricks of the dealer harvesting retail investors...)