2025-12-27 14:23:38

## Why Do Some People Always Get Liquidated While Others Always Make Money in Contracts?

Recently, I’ve seen many discussions about this topic in the community, so I might as well speak my mind.

Honestly, most people haven’t fully understood what a contract really is. When you see exchanges displaying 5x, 10x leverage, you might think you’re opening a 5x position? It’s not that simple.

Let’s do some math: with a $10,000 account, the maximum risk tolerance before liquidation is $500. But some insist on opening a $30,000 position — it looks like 5x leverage, but in reality? You’re gambling with 60x risk on this market move. And then you fool yourself into thinking, "I can control this," which is just ridiculous.

Those who truly understand contracts know that the essence of this isn’t about betting on size, but about risk hedging. Every dollar you earn isn’t due to luck, but because the losses of others getting liquidated are transferred to you.

Look at how professional traders operate: they spend 70% of their time waiting. When the market isn’t in the right position, no matter how tempting, they don’t act. Once they do, it’s about precise harvesting — this is completely different from retail traders blindly messing around in the market every day.

To survive in the contract trading world, there are two words: against human nature. When others are scared, you need to stay calm; when others are greedily chasing, you must be alert. Stop-loss must be taken seriously, with a single-loss limit of 5% of your account — never loosen this. Conversely, take profits ruthlessly. Once profits start to accumulate, exit quickly. The take-profit range should be at least twice the stop-loss.

Some people still object: "A contract is just gambling, right?" Listen to me, that’s not true. You get liquidated because you’re gambling, but we make money because we’re doing calculations — calculating risk, probabilities, and position sizes.

If you can understand the logic of leverage thoroughly and stick to those anti-human trading disciplines, contracts can become a real tool. Otherwise, they will only be traps to harvest your funds.

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PositionPhobia

· 13h ago

Basically, it's a mindset issue. Most people haven't thought through what they are actually doing. --- Betting with 60x risk, and they really dare to do it. No wonder they get liquidated. --- The phrase "anti-human nature" is so accurate, but unfortunately 99% of people can't do it. --- Stop-loss at 5%, take-profit doubled, sounds simple but practically very difficult. --- Wait, wait, wait. Isn't this just gambling? Just packaged to seem more reasonable. --- Those who truly make money spend 70% of their time waiting. My problem is, I wait until then to change positions, haha. --- Risk hedging sounds high-end, but it's really just others making a killing while I make money. --- Be cautious of others' greed, stay calm when others are timid. Easy to understand but hard to practice, brother. --- The difference between accounting and gambling lies in discipline. Most people haven't even understood what discipline is.

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CryptoSourGrape

· 13h ago

If I had seen this article earlier, I wouldn't still be regretting the liquidation after that wave of 5x leverage explosion...

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digital_archaeologist

· 13h ago

To put it simply, it's a game of mindset and discipline. Most people lose because of greed. However, those who truly make money through discipline are indeed a minority; most still have a gambler's mentality.

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GateUser-a180694b

· 13h ago

That's right, retail investors just don't understand risk management and think they can play futures by looking at a few K-line charts. --- Really? How many people are self-deceiving? Clearly, it's high leverage risk, yet they insist they can control it. --- Waiting 70% of the time really hit me; I used to be active every day, but now I find it satisfying to hold a vacant position. --- That anti-human nature part is indeed the core; most people can't do it, which is why they get harvested. --- A 5% stop loss and double take profit sounds simple, but it's actually counter to human nature to do it; I'm still overcoming the psychological barrier. --- The essence of futures is zero-sum game; when others lose, you gain. Once you see through this, the strategy becomes clear. --- The problem is most people are unwilling to admit they're gambling; they insist on packaging it as some kind of investment or financial management. --- I think it's just a lack of trading discipline; discipline is a thousand times more important than luck.

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EyeOfTheTokenStorm

· 14h ago

There's nothing wrong with what you're saying, but most people simply can't do the opposite of human nature, which is a hundred times easier said than done. The most heartbreaking part is the example of 60x risk—how many people thought they were using 5x leverage and didn't realize they had already blown up? Setting a 5% stop loss and a 10% take profit sounds simple, but when the market fluctuates, the mindset collapses. No matter how good the technical analysis is, it can't save a greedy heart. The people who truly make money don't care about intraday fluctuations; instead, retail traders are glued to the screens every day, obsessing over every move.

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