In the crypto world, frequent liquidations in contract trading are a complex and multi-layered phenomenon. The essence of liquidation is the collision between market volatility and traders' risk management, and the unique crypto ecosystem amplifies the destructive impact of this collision. Below is an in-depth analysis of the main reasons:
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I. Core Internal Factor: The Leverage Mechanism of Contract Trading
Leverage is a "double-edged sword" and the direct trigger for liquidation.
1. Amplified Profits and Losses: For example, using 100x leverage means a 1% adverse market move can result in

In crypto contract trading, mindset is an even more critical factor for success or failure than technical skills. The market uses candlestick charts to precisely test every weakness in your human nature—greed, fear, luck, arrogance. Below is a systematic framework to help you build an "antifragile" trading mindset.
I. The Three Root Causes of Mindset Collapse
1. Resistance to Uncertainty: Trying to predict every market move and being unable to accept that "profits come from probability, not certainty."
2. Misplaced Identity: Tying trading gains and losses to self-worth ("If I win, I'm smart; i

In crypto contract trading, the phenomenon you mentioned—“unable to hold onto profitable positions, but stubbornly holding onto losing ones”—is extremely common. It involves factors at multiple levels, including trading psychology, market characteristics, and cognitive biases. Understanding these reasons is the first step toward rational trading.
I. Core Reasons Analysis
1. The Domination of Human Nature and Emotions
· Unable to Hold Profitable Positions: Rooted in “Fear”
When there are floating profits in the account, the strong fear of “locking in profits” and “being afraid of giving back

This is an extremely sharp and realistic question. In the crypto derivatives market (i.e., cryptocurrency futures/perpetual contracts), “long-term survival” itself is a highly challenging goal, because this is a “negative-sum game” market (fees, funding rates, and liquidations constantly drain money from the pool), and the volatility, uncertainty, and aggressiveness of your counterparts far exceed those in traditional financial markets.
If you define “long-term survival” as avoiding liquidation, being able to continuously participate in the market, and ultimately achieving stable profitability

Hearing that you've suffered losses again in contract trading, I completely understand your current frustration and pressure. The high volatility and leverage in the crypto derivatives market have indeed caused many people to experience similar setbacks. But remember, temporary failure does not define your abilities or your future. What matters now is to calm down, avoid emotional decisions, and re-examine your trading strategy. Here are some points to consider, which I hope will be of help to you:
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1. Pause Trading and Adjust Your Mindset
· Emotional Management: After a liquidation, it's e

Contract trading review in the crypto space is one of the most crucial and core steps for a trader to transition from a "gambler" to a "professional trader." Its importance cannot be overstated.
We can understand its significance in depth from the following aspects:
I. Why is reviewing so important? (Core Value)
1. Breaking "Illusions" and "Memory Bias"
· Human memory tends to glorify successful trades and downplay failed ones. Reviewing through objective written records (or data) allows you to clearly see your true self: are you making profits through skill, or just luck? Was that "perfect

Newbies entering the crypto world and engaging in futures trading are easily subjected to getting liquidated, mainly due to a lack of sufficient understanding of the high-risk characteristics of futures trading, as well as insufficient trading psychology and risk control abilities. Here are some key reasons and subsequent precautions to help you participate in futures trading more safely:
1. Why are newbies easily Get Liquidated?
1. High Leverage Abuse
· Newbies often mistakenly believe that "the higher the leverage, the faster the profits", but leverage is a double-edged sword. For example