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.
Experienced traders spend 70% of their time in flat positions, observing; they never take action without a clear trend. Once they open a position, the goal is to precisely harvest. In contrast, ordinary retail investors trade frequently, act emotionally, and have no strategy, ultimately becoming the chips that get harvested.
To achieve long-term profitability in contracts, there are only two core principles: two words—counter human nature.
Stay calm when others panic, remain 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, decisively hold on; aim for at least twice the stop-loss amount, 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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FinanceExpertLaoLi
· 13h ago
Why do contracts get liquidated every day, yet so many people still play?
Let’s be blunt: most people don’t even understand what it’s really about.
To ordinary retail traders, contracts are high-risk gambling; but to professional players, contracts are essentially risk-hedging tools. Here, profit is never made by luck—it’s made by collecting other people’s liquidation losses. The market itself is a zero-sum game: when someone goes to zero, someone else gets rich.
For experienced traders, 70% of the time is spent staying in cash and watching the market. Without a clear, certain setup, they don’t act lightly. Once they open a position, their goal is to precisely take profits by harvesting other people’s liquidations and losses. In contrast, ordinary retail traders trade back and forth constantly, place orders emotionally, and have no system—until they end up as the “chips” being harvested.
If you want long-term profitability with contracts, there are only two words at the core: against human nature.
When everyone is panicking, stay calm; when the market is greedy, stay cautious. Rigorously control the loss limit—never let any single trade lose more than 5% of total capital. In the profit phase, hold decisively; ensure your gains are at least twice the stop-loss amount. The risk-reward ratio should always come before the number of trades.
Many stubbornly insist that contracts are purely gambling. That’s actually only half true: you get liquidated because you treat it like a game.
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