2025-12-29 09:27:31

When starting with contract trading, I also fell into that common trap—studying various indicators on the candlestick chart, repeatedly drawing trend lines, Fibonacci levels, MACD, RSI, staying glued to the screen at night, afraid of missing any fluctuation. As a result, my account shrank, and my mindset collapsed.

It wasn't until the fifth liquidation that I realized how absurd my approach was.

Why do so many traders frequently get liquidated? It's not due to a lack of intelligence, but because they keep falling into the same pitfalls: frequent trading eats up profits with fees and slippage; after losses, they can't accept it and keep adding to their positions, sinking deeper; they fantasize about rebounds on falling positions and never proactively set stop-losses. I used to be confused like that too.

The turning point came when I completely changed my strategy. I set three unbreakable rules for myself: only trade at key levels—don't try to guess the top or bottom; wait for clear trend breakouts or pullbacks before entering; only consider adding to winning positions—never average down with losses, let existing profits run; set stop-losses in advance—any single loss limit is 2% of the principal.

It sounds simple, but the market tempts you every second to break these rules.

The real breakthrough was changing my expectations of the market. I no longer pursue daily profits but wait for high-probability opportunities. I spend 80% of my trading time in flat positions observing, only actively trading during the most clear signals, and only then. After making profits, I protect the principal and never let greed cause me to give back the gains.

Thus, starting from a $5,000 account, it gradually grew to $130,000.

People often see contract trading as a gamble, but seasoned traders know it's a matter of probabilities. The market doesn't give you high-probability opportunities every day; learning to wait is the highest-level skill. Every loss is an unavoidable cost of trading; the key is to keep it within an acceptable range. Those seemingly small gains and strictly controlled losses, compounded over time, lead to qualitative change.

If you're still stuck in the cycle of frequent liquidations, try this approach: drastically reduce trading frequency, unconditionally execute stop-losses, don't let small losses turn into big ones, protect your floating profits, and patiently wait for the market to reward your discipline.

The most important points are really just these—rules first, mindset second, let the data speak.

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AlwaysQuestioning

· 3h ago

To be honest, I've fallen into the trap of frequent trading before. Every time, I think I can predict the next K-line... and end up losing a lot. Stop-loss is really a skill; most people set it but are reluctant to execute it. This 80/20 approach is indeed ruthless, but the hardest part is execution—human nature is greedy. Going from 5k to 130k is not a small number, but the key is whether you can hold on. That's what tests your mentality.

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MainnetDelayedAgain

· 6h ago

According to the database, this guy's growth curve from $5,000 to $130,000 is more credible than some project funding commitment tables... How long has it been since the 5th liquidation? It is recommended to add data with a time dimension. So essentially, it's still waiting for that "high probability" moment to occur, similar to waiting for a delay notification; both are discipline issues. The 80/20 rule sounds a bit familiar, like a feeling that it will eventually be realized.

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WhaleSurfer

· 6h ago

Another story of learning life from 5 liquidation events, I don't believe you... But it's true that what you said is not wrong, just too hard to implement. I have deep experience with frequent trading; trading fees can really eat up 80% of the profit. 80% in cash, 20% to trade—sounds simple, but sticking to it for a week can drive you crazy. I've also tried this theory, but the key is mindset. Watching the K-line without moving really makes you go crazy. The most deadly part is adding to losing positions; even when losing money, some refuse to admit defeat, often making it worse. A 2% stop-loss limit is actually enough, but most people simply can't do it. In short, it's a discipline issue; the market tests whether you can hold back every day.

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SolidityJester

· 6h ago

It took five margin calls to wake up, how painful that must have been, haha --- Wait, 80% cash and 20% active trading... isn't that exactly what I'm doing now? Feels like I'm on the right track --- A 2% stop-loss is really the ultimate. How many people end up losing everything just because they can't bear to lose that small amount --- From 5k to 130k, never mind, I better not calculate it. I'm afraid I'll get more competitive --- You're right, it's not about being smart or not, it's just greed that traps people --- The key points are these: don't trade frequently, set a firm stop-loss, wait for opportunities. It's so simple that it's almost ridiculous, yet extremely difficult --- "The market tempts you every second" — this really hit me, especially when I was watching charts late at night --- I also want to try this approach, but the problem is... can I stick to 80% cash? That's the real challenge

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PuzzledScholar

· 6h ago

Only after the 5th liquidation did I realize the true meaning; this realization came at a pretty high cost. --- 80% out of the market, 20% to make a move—sounds simple, but actually doing it can really drive you crazy. --- Basically, don’t trade frequently, don’t add to your position, don’t keep fantasizing. It’s true, but executing it is really a torment. --- Hearing that from 5K to 130K sounds great, but I don’t know how much it retraced in between. --- The hardest part isn’t understanding the rules; it’s actually holding your hand steady at the moment the candlestick moves up or down. --- I agree with the 2% stop-loss point; whether you agree or not, you’re on the liquidation list. --- Never average down with losses—that phrase should be posted on every contract trader’s forehead. --- Day after day, staring at charts and drawing lines is really the easiest way to lose money. I’ve been through that myself. --- The market is just tempting you to break the rules; that’s a pretty harsh truth. --- Adding to your position when floating profits, not adding when not, has no logical problem but is a mental hurdle to overcome.

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airdrop_huntress

· 6h ago

Oh no, you're absolutely right. I used to be a chart obsession freak too, and as a result, my account kept plummeting. Wait, $130,000? Why does this story sound so familiar haha. Really, setting stop-loss orders is easy to say, but how many can actually stick to them during trading? I haven't. During the frequent trading period, the fees ate up my profits, and I realized that. Basically, it's about controlling your hands; holding a zero position is also profitable. I need to engrain this in my mind. Understanding after five margin calls? No, I've blown up eight times, maybe I'm a bit stubborn. The idea of 80% cash position sounds a bit exaggerated, but it seems to hit something. Adding to a position is really playing a big game; the result was bleeding losses, and I won't do it anymore. Compound interest is a long-term game, not something to gamble on once; taking it slow is the way to earn.

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