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 some go to zero, others become instant millionaires.
Experienced traders spend 70% of their time in cash, observing the market; they never take action without a clear trend. Once they open a position, the goal is to precisely harvest profits. 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—go against 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 onto gains; 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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BaiYanyan
· 05-17 04:43
Why do futures keep liquidating people every day, yet so many still play?
Let me put it bluntly: most people never really understand what’s going on.
To ordinary retail investors, futures are high-risk gambling; but to professional traders, futures are essentially risk-hedging tools. The profit is never made by luck, but from liquidation losses caused by other people. The market itself is a zero-sum game—when someone goes to zero, someone else gets rich.
Seasoned traders spend 70% of their time flat and watching. Without a certain setup, they don’t act lightly. Once they open a position, the goal is precise harvesting. By contrast, ordinary retail investors trade back and forth constantly, make emotional decisions, have no rules—until they eventually become the chips being harvested.
If you want to profit from futures long-term, the core is just two words: go against human nature.
When everyone is panicking, stay calm. When the market is greedy, stay cautious. Rigorously control your loss floor—never let any single trade lose more than 5% of your total capital. During profitable phases, hold firmly; make sure your gains are at least twice the amount of your stop-loss. In the end, the risk-reward ratio always comes first over the number of trades.
Many stubbornly insist that futures are purely gambling—this line is only half true: you get liquidated because you treat it like a gamble.
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