Recently witnessed 3 newcomers in the crypto world selling their houses to pay off debts due to contract liquidations. As an experienced player through three cycles of bull and bear markets, I must clarify these hard-earned lessons learned through real money:
Contracts are not a wealth code, but a meat grinder for 99% of retail investors' capital!
The following 8 iron rules of contracts are filled with the 'DNA of liquidators,' please save and remember them!
⚔️01｜Leverage is the devil: 10x leverage = 10% volatility goes to zero.
In spot trading, you can still hold on through a 50% drop and wait for a rebound;
With 10x leverage in contracts, if the price moves against you by 10%, you are directly liquidated.
Data from a certain exchange shows: 82% of liquidations occur in the 10-50x leverage range, and what's worse than P2P is—you don't even have a chance to defend your rights!
🎰02｜Gambler's mentality: From small profits to big losses, it only takes 3 times.
Start with 100U → Earn 500U and increase your position → Earn another 2000U and start all in → Overnight loss returns you to square one.
This is the true portrayal of 95% of contract players.
You are not trading, you are gambling with your life. Your brain is dominated by dopamine, and the addiction is stronger than spending money on mobile games!
🧠03｜Emotional slaughterhouse: You are not making money; you are overdrawing your mental health.
Staring at the market at 3 AM, angrily smashing your phone during a spike, feeling guilty and losing sleep after liquidation—it's not that you lack talent, it's that you are mentally exhausted.
Research shows: The anxiety index of high-frequency contract traders is 7 times that of ordinary investors.
📉04｜Reverse harvesting: The market may soar, but it has nothing to do with you.
In spot trading, you can still 'lie flat and be a shareholder';
If a contract is liquidated, even if BTC increases by 100 times, it has nothing to do with you.
In 2024, BTC will break 100,000 U, and at that time, 63% of liquidated users had chosen the wrong direction and were instead harvested by a price surge.
🎭05｜Risk perception misalignment: Profit depends on luck, while losses are the norm.
You make a few short-term profits, and you think you've become a 'market operator';
But the reality is: you just happened to catch the right rhythm when the 'big players are releasing water.'
Data does not lie: Only 0.37% of contract players can maintain stable profits for over 6 months.
🪤06｜Platform hunting moments: Slippage / spikes / unplugging the network cable, specifically targeting you.
You think your opponent is the market, but in reality, your opponent is the exchange.
A spike incident on a certain platform in 2023: 5000 long positions were instantly cleared in 0.1 seconds. Technical malfunction? Heh, it has never happened in the spot market.
⚠️07｜Stop-loss mechanism failure: In extreme market conditions, life and death are only within 3 seconds.
In contract trading, stop-losses are often just psychological comfort.
Sudden black swan events and spikes can make your stop-losses virtually useless; 80% of liquidations happen within 3 minutes of extreme volatility.
🧟♂️08｜Energy harvesting machine: You think you are the operator, but you are actually a 24-hour financial worker.
Watching the market all day, calculating leverage, refreshing Twitter, observing the actions of big players, analyzing trends... You are not a free trader, you are a tool kidnapped by contracts.
The result is: capital goes to zero + eyesight declines + mental fatigue = you are still fantasizing about recovering your losses with the next trade.
✅Conclusion:
The contract market is not short of winners, but there are almost no long-term winners.
If you have not established a mature cognitive system, a strict risk control system, and a stable mindset, contracts are not tools for amplifying benefits, but scythes for harvesting your fate in advance.
