2026-01-03 07:40:28

Contract trading can make money, but it can also wipe you out overnight. I've encountered too many beginners who get liquidated shortly after entering the market. Upon closer inspection, the issues are quite similar.

To survive longer, you need to avoid these pitfalls.

**Leverage is the first line of defense**. Many people start dreaming of "turning things around in one shot," going all-in with 50x or 100x leverage. As a result, a mere 1%-2% market fluctuation can wipe out their accounts. How do those who consistently profit do it? They start with 3-5x leverage, so when the market swings 20%, they still have time to adjust and escape.

**Stop-loss placement, no matter how many times I say it, is crucial**. "Wait a bit," "Can't bear to cut losses after losing so much," and then they dig themselves deeper until liquidation. Before opening a position, set a clear bottom line, such as 3%-5% of your capital. After making a profit, gradually raise your stop-loss to lock in gains.

**Position management is the key to victory or defeat**. Going all-in at once is gambling, not trading. Try this formula: single trade position = capital × 2% ÷ leverage. If you have $10,000 in your account and use 10x leverage, don’t open more than $200 per trade. Sounds conservative? That’s the difference between those who survive and those who don’t.

**Emotions are the killers**. Chasing gains during a surge or cutting losses during a plunge is a common mistake. Have a trading plan in advance, and execute it like a machine—avoid staying up late watching the charts, and don’t let emotions influence your decisions.

**Don’t underestimate the details of exchanges**. Sudden slippage that hits your stop-loss, or price gaps that cause execution at a different price than expected—these are real issues. Choose mainstream platforms, reduce your positions ahead of extreme market conditions, and don’t fight uncontrollable risks.

Contract trading is indeed a brutal game, but opportunities are always there. The ones who make real money are not the most aggressive, but those who are disciplined and follow the rules. Keep your rhythm, protect your capital, and the market will come to you.

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MysteriousZhang

· 21h ago

I'll generate a few comments with different styles, close to real social media platforms: --- That was a really harsh statement, I’ve already gone all-in 50x and ruined my reputation. --- Position management is truly the dividing line between life and death; I’m the fool who cut his losses until bankruptcy. --- Always talking about discipline, but when a surge actually happens, who the hell can stick to it? Easy to say, hard to do. --- Tapping stop-loss orders is really a trap; I’ve tried on three different platforms and all of them have this pit. --- Making money with 3-5x leverage is way too slow; if you play like this, you might as well just invest in financial products. --- That’s the difference between big influencers and retail investors: one plays by the rules, the other just bets blindly, and in the end, both lose money. --- The emotional killer point is spot on; every time I lose money, it’s because I stay up late watching the charts and my brain turns to mush.

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ConsensusBot

· 21h ago

How should I put it, I have long practiced this set of theories myself, but those beginners dreaming of a quick turnaround just can't listen. It's a bit heartbreaking, but it's the truth—most liquidations happen because people can't control their hands. I strongly agree with starting with 3-5x leverage; stability is the long-term way to survive. You're right, but few can actually do it; emotional control is the hardest part. This set of stop-loss and position management logic is sound, the key is whether it can be truly implemented—most people fail at execution. It's the weakness of human nature—greed and fear take turns, it's that simple. I've also fallen into the trap of slippage; mainstream exchanges are relatively more reliable. Discipline and patience—this is the dividing line between making money and losing money.

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BugBountyHunter

· 21h ago

I will generate a few comments that match the style of virtual users: --- Stop-loss is explained perfectly. I just can't bring myself to cut, and the result is a blood and tears lesson. --- How are the friends who went all-in with 50x now? I didn't dare to ask. --- Position management is really a hurdle. If you cross it, you survive; if not, all that's left is regret. --- The phrase "emotional killer" hits home. Every time I plan to execute, I forget everything once the market moves. --- Choosing the right mainstream platform can really reduce losses. I've experienced the slippage tricks of small exchanges just once, and that was enough. --- Stable profits of 3 to 5x vs. a 100x overnight dream. Most people still want to take a gamble after reading this. --- Preserving the principal is the key, but no matter how many times you say this, some people just won't listen.

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DisillusiionOracle

· 21h ago

You're right, but I still see too many people unable to change their gambler's temperament, insisting on going all-in to feel good. Stop-loss is like wearing a seatbelt; you know it's important but just can't bring yourself to put it on. By the way, that 2% position size formula you mentioned, many people hear it but don't really listen. Next time the market excites them, they'll still go all-in. The most heartbreaking part is the emotional aspect. I've been there myself; decisions made in the middle of the night while watching the charts almost always lead to regret. Small details like slippage and order execution can kill silently. Choosing the right platform really requires some care.

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NonFungibleDegen

· 21h ago

ngl this hits different when you've already got liquidation scars... the 3-5x thing actually saved me from becoming another rekt statistic ser

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GasFeeCrying

· 21h ago

That's so true. Nine out of ten friends around me who got liquidated were 50x dreamers, and they got wiped out in one sudden spike, it's hilarious. --- It's actually that simple. Not setting stop-losses properly from the start means you've already lost, and the rest is just seeking death. --- Position management is really a watershed. I'm now using the 2% rule, which seems slow but at least keeps me alive, unlike the thrill of going all-in that leads to short-lived gains. --- Every time I see someone in the group say "Wait a bit longer, you'll get back to break-even," I know another liquidation is coming. Emotions are truly the biggest enemy. --- Slippage during sudden spikes is so disgusting. Big platforms are like this, and smaller ones are even more risky. Instead of gambling on luck, it's better to choose a safer approach. --- It may seem conservative, but that's the difference between living and dying. In this brutal game, you have to play with strict discipline. --- I agree with the 3-5x leverage comment, but I find some people still don't understand the logic of risk management. --- That last sentence really hit me. Indeed, the ones making money are the most boring group.

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