The liquidation rate in the cryptocurrency contract market has reached 99%! Why are people still rushing in to invest crazily?
Do you think low leverage is safe? Wrong!
90% of people can't even calculate 'real leverage'!
You are not losing to the market; you are losing to yourself.
Countless people get liquidated every day, but why do some still rush in? Because—those who get liquidated support those who make money.
'Leverage' is not what you think it is.
The '5x' or '10x' displayed by exchanges is just a risk control indicator of the platform and has nothing to do with your actual risk!
Real leverage = your position / your stop-loss funds.
For example, if your principal is 10,000 USDT, and you open 10x leverage, but set your stop-loss at only 100 USDT, then your real leverage is actually 100x!
90% of people die in these 3 traps:
'Anti-single'
'All-in'
'Emotional averaging up'
—— You get liquidated because you gave the market a 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 get liquidated!
Bull market? Bear market? It doesn't matter!
You can make money whether the market rises or falls; the key is whether you can survive to the 'money-snatching moment'.
Bull market: Retail investors FOMO chase the rise, you short at high positions.
Bear market: Retail investors panic and cut losses, you buy at low positions.
'Risk Manager' vs 'Dreamer'
Dreamer: 'This coin can rise 100 times! I’ll go all in!' (Result: liquidation)
Risk Manager: 'This position has a risk-reward ratio of 3:1, test with 5% of the position, stop-loss is clear.' (Survive and wait for opportunities)
The secret of professional traders:
'80% of the time in cash, 20% of the time picking up money.'
—— You are not here to trade; you are here to wait for others to make mistakes.
With the same strategy, 80% of people still lose money—because of human nature.
'If you can't control risk, don't play contracts—otherwise, you will be viewed as a 'corpse' by others.'
If you really want to make money, first learn to 'not get liquidated'.
Otherwise, you will always be someone else's ATM.
The more chaotic the market,
the less you should operate blindly!
