$BTC Why do beginners keep getting liquidated in contracts?
Do you think following the "big shots" will let you earn money effortlessly? In the end, you might lose all your principal. It's not the market targeting you, but you haven't understood these 5 painful lessons.
Leverage is not just a multiplier, it’s a death sentence
"50x leverage, wealth freedom in one shot!" — Then the market shakes, and your account goes to zero.
5x leverage: 20% margin of error, like wearing a bulletproof vest in battle.
50x leverage: 2% margin of error, equivalent to running naked into a minefield.
Remember: surviving is the key to turning the tables; 3-5x leverage is enough.
Stop-loss is a lifesaver, not a sign of weakness
"Just hold on a bit longer, I’ll be back to breakeven soon"
→ When it drops to 80%: "Cutting losses hurts too much"
→ After liquidation: "If I had known..."
The first thing smart traders do when opening a position: set a stop-loss line, just like buckling your seatbelt before getting in the car.
Full margin = gambling with your life
"This wave is stable, All in!"
→ A 5% reverse fluctuation, and it’s game over.
Remember the formula:
Single position size = the money you can afford to lose × 0.5
(For example, if you play with 50,000, don’t exceed 1,000)
Emotions are the biggest manipulators
FOMO chasing the rise: buying puts you at the peak
Panic selling: selling makes it rebound
The hand watching the market at 3 AM is always a step ahead of the brain.
Solution: Once you place your order, shut down your computer; the less you watch, the fewer mistakes you make.
The exchange's "legal harvesting"
Spike: A needle in the middle of the night, specifically targeting high-leverage gamblers.
Slippage: A crash happens, and you want to close your position? The actual transaction price makes you question your existence.
Survival rules:
Only trade on the three major exchanges
Avoid high-risk periods like the Fed's announcements or whale sell-offs.
The final truth
Contracts are not ATMs; they are meat grinders.
9 out of 10 newcomers get liquidated, and the remaining 1 pretends to be dead.
First, learn to survive with 100 for a month, then think about making money.
This market changes every day; you need to be precise about the timing before taking action. If you are still too confused, you might want to follow along; I usually share cutting-edge information and practical strategies. Feel free to come discuss and seize big opportunities together!
