Contract trading (especially high-leverage contract trading) can lead to extreme wealth in the short term but is very likely to go to zero in the long run.

1. From a statistical perspective:

Over 90% of retail investors lose money in long-term contract trading.

Among them, users who use higher leverage and trade frequently have a higher probability of loss.

Mainstream exchanges have long concluded based on massive behavioral data: contracts are cash machines for retail investors but printing machines for exchanges.

2. Why is contract trading prone to liquidation in the long run?

High leverage amplifies losses.

The higher the leverage, the more likely liquidation is with slight price fluctuations, leading to the principal going to zero.

Human nature is hard to overcome.

Fear, greed, revenge trading, and failing to cut losses are all fatal points.

Trading costs exist implicitly.

Fees, slippage, forced liquidation costs, etc., continuously eat away at the principal.

Being harvested by large players.

Candlestick charts are not objective; they reflect the results of the struggle between market makers and institutions, with retail investors having no advantage.

Sustained profitability is difficult.

Occasionally making a profit, but the more you trade, the harder it is to resist over-leveraging, resulting in losses from a single trade.

3. Some real-world examples (common characteristics):

Making 100% profit, wiped out in one liquidation;

Making money for 10 days, but losing more in 1 day;

"I'll take my profit when I double my investment"—can't take it out;

Ultimately, very few people achieve "stable profits"; most either change careers or lose everything and stop.

4. Who is suitable for trading?

✅ Professional traders with a strict risk control system

✅ A minority who can maintain "cold-bloodedness, discipline, and stability"

❌ The vast majority of ordinary people (especially those with unstable emotions)

5. What should you do?

If you are not a professional trader relying on contracts for a living, but an ordinary person, it is recommended that you:

Treat contract trading as a form of behavioral investment, viewing each trade as a probability game, and set a funding limit.

Alternatively, simply stay away and turn to more sustainable ways of growth, such as:

Investing in quality assets through regular purchases

Stably holding platform tokens to earn commission rebates

Using a KOL identity to benefit from ecological dividends.