Make a record of #ETH empty order! Why did you get liquidated? Contract orders come with stop-loss; sometimes it just results in break-even losses or profit drawdowns. But why are there countless people getting liquidated in the futures market?

The real reason is related to human nature, and there are generally two psychological states that lead to liquidation.

The first is in a winning streak. When a person is on a winning streak, they develop loss aversion and cannot accept leaving with a loss, leading them to hold on or increase their position size. The more they add, the heavier it gets, and ultimately, they get liquidated.

The second is in a losing streak. At this point, human nature ignites a fearless attitude towards risk, thinking that since they have already lost, they might as well fight against the main force! Leverage amplifies this reckless psychology, and in the end, they get liquidated.

All techniques are just aids; even the best traders make mistakes sometimes. That’s not the point. The key issue is how you deal with it when you are wrong: do you follow the human emotions of fear and greed, or do you strictly execute your strategy and stop-loss?

Leverage trading is essentially an amplifier of human nature. Regardless of how skilled the trader is, in the end, they will all lose to their own nature. The traders who ultimately succeed are not those who conquer the market, but those who conquer their own human nature.