Why do contracts keep liquidating every day, yet so many people still play?


To be honest, most people simply don't understand how it works.
In the eyes of ordinary retail investors, contracts are high-risk gambling; but in the eyes of professional traders, contracts are essentially risk hedging tools.
The profits here are never earned by luck, but by harvesting others' liquidations and losses.
The market itself is a zero-sum game; when someone goes to zero, someone else gets rich overnight.
Experienced traders spend 70% of their time in flat positions, observing; they never take action without a clear trend.
Once they open a position, their goal is to precisely harvest profits.
In contrast, ordinary retail investors trade frequently, emotional in their decisions, with no clear strategy, ultimately becoming the chips that get harvested.
To achieve long-term profitability in contracts, there are only two core principles: two words—go against human nature.
Stay calm when others panic, be cautious when the market is greedy.
Strictly control the loss threshold; never lose more than 5% of total capital on a single trade.
During profit phases, hold decisively; aim for at least twice the stop-loss distance in gains, with risk-reward ratio always prioritized over trading frequency.
Many stubbornly believe that contracts are purely gambling, but this statement is only half correct:
You get liquidated because you treat it as a gamble.
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Langlang
· 05-17 04:38
Why do contracts keep liquidating every day, yet so many people still play?
To be honest, most people simply don’t understand how it works.
In the eyes of ordinary retail investors, contracts are high-risk gambling; but in the eyes of professional traders, contracts are essentially risk hedging tools. The profits here are never earned by luck, but by harvesting others’ liquidations and losses. The market itself is a zero-sum game; when someone goes to zero, someone else becomes rich overnight.
Experienced traders spend 70% of their time in flat positions, observing without action. Without a clear market trend, they never make impulsive moves. Once they open a position, their goal is to precisely harvest profits. In contrast, ordinary retail investors trade frequently, driven by emotions, making reckless decisions without a plan, ultimately becoming the chips to be harvested.
To achieve long-term profitability with contracts, there are only two core principles: two words—go against human nature.
Stay calm when others panic, remain cautious when the market is greedy. Strictly control the loss threshold; never let a single loss exceed 5% of total capital. During profit phases, hold decisively; aim for at least twice the stop-loss amount in gains, with risk-reward ratio always prioritized over trading frequency.
Many people stubbornly believe that contracts are purely gambling, but this statement is only half true: you get liquidated because you treat it as a gamble.
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