Do people who lose money in contracts really understand what they are doing?

Last week, a friend came to me for a review. He started with a capital of 8000U and now only has 1300U left. By looking through his records, I understood: starting with 20x leverage, going all-in on a single coin, holding positions without stopping loss - a standard gambling operation.

I gave a suggestion: don't rush to break even, first learn to understand one thing - the funding rate.

He has been watching the funding rate of ETH for a week and found it to be consistently positive. What does this mean? Long positions are paying short positions, and market sentiment is overwhelmingly one-sided. This is much more reliable than those complex candlestick charts.

The leverage tool depends on how you use it. For beginners, 3 to 5 times is enough; going to 10 times is like walking a tightrope. As for 100 times? A 1-point fluctuation can lead to zero, without even a moment to react.

Position management is more crucial. The maximum leverage for a single coin should be 30%, and there must be room left in the total position. I have seen too many people who went all in to realize their dream of getting rich, and I have seen even more who wiped out everything in a week. What's the difference? It's about whether they can control risk.

That friend has recovered now, and he got back 5000U from 1300U last week. He told me that the biggest gain wasn't how much money he made, but that he finally knows how to stay in this market longer.

If you keep stumbling in the contract market, think about it: should you continue to gamble based on intuition, or should you find someone to help you avoid those deadly pitfalls?