Traders who deal with contracts all know that the most dangerous thing is often not the big market swings, but the pitfalls they dig themselves.

Over the years, the pattern of liquidations is pretty much the same—people come in and are gone within a couple of days, either because they open absurd leverage, hold on stubbornly without cutting, or get played to death by their own emotions. Today, I will break down these deadly mistakes one by one. If you can avoid these hurdles, your chances of survival can at least double.

**The higher the leverage, the faster you die**

The most common rookie mistake is jumping in with 50x or 100x leverage, dreaming of a quick turnaround. But what happens? A slight 1% or 2% fluctuation in BTC wipes out the account. This isn’t some mystical thing; it’s just math.

Experienced traders who last longer usually start with 3-5x leverage. The interesting thing about this multiple is that even if the market swings 20%, you still have enough time to react or set a stop-loss, rather than being knocked out with a single market move. Beginners often think this is too conservative, but conservatism is the foundation of survival.

**Stop-loss setting = life-saving charm**

Another common devilish idea is "Wait a bit, it will definitely rebound." I’ve seen too many people hold on with 50% floating loss, only to end up liquidated. Before opening a position, you must set a stop-loss point in advance, usually at 3%-5% of your capital. Once you start making profits, gradually move the stop-loss up—this is called locking in profits.

Many people see stop-loss as a sign of failure, but actually, it’s the opposite—stop-loss is your last line of defense. Either you proactively cut your losses, or the market forces you to do so. The difference is that when forced, there’s no chance to fight back.

**Full position = suicidal tendency**

There’s a very simple but highly effective position sizing formula: **Maximum single position = Capital × 2% ÷ Leverage**

For example: if your capital is 10,000 USDT and you use 10x leverage, your maximum single position is 200 USDT. It might sound too cautious, but that’s why some traders last 10 years, while others quit in 6 months.

Opportunities are everywhere—ETH, XRP, BTC fluctuate 24/7. No need to bet everything at once. Position management is the key to long-term survival.

**Emotions are the biggest enemy**

FOMO—chasing highs and selling lows—can wipe out most people. Impulsively buying during a surge, panicking and selling during a crash—these are the main sources of losses. The solution is simple but requires discipline: plan your trades in advance and execute like a robot. Don’t stay up all night watching the charts, don’t let the market hype influence you.

Treat trading as a process, not a gamble, and your mindset will stabilize.

**Avoid the hidden traps of exchanges**

Finally, a trap that’s easy to overlook but very powerful—various tricks by exchanges. "Sniping" can instantly wipe out your stop-loss orders, and slippage can cause your actual transaction price to be far from your expected price. That’s why it’s crucial to choose mainstream exchanges. During extreme market conditions, proactively reduce your position size.

Don’t take risks you don’t understand—that’s the basic principle of survival.

**Stay steady, and you will win**

The contract market is indeed a meat grinder, but it’s also a place to get rich. The real money-makers aren’t the boldest, but those who strictly follow discipline and have strong risk awareness. Stick to your rhythm, protect your capital, and opportunities will naturally come to you.