$BTC Crypto Market Contract Liquidation Rate 99%! Why Can't Retail Investors Stop Losing?
Do you think low leverage is safe? Naive!
90% of people can't even calculate 'real leverage' — your liquidation is not an accident, it's inevitable.
'Those who get liquidated are the true liquidity providers.'
What you think is leverage vs real leverage
The exchange's '5x' '10x' is just a risk control trick, the real leverage is:
Your position ÷ Your stop-loss funds
If your capital is 10,000 USDT, you open 10x leverage, and set your stop-loss at only 100 USDT?
Your real leverage is 100x! (If the market fluctuates by 1%, you go to zero)
90% of people die from these three traps
'Anti-single' — thinking they are Buffett, but end up as Ba-Buffett
'All-in' — betting it all on one shot, and the outcome is left to fate
'Emotional averaging down' — losing and hoping to break even, winning and wanting to get rich, ultimately giving everything to the exchange
'You aren't losing to the market, you are losing to your own greed.'
The essence of contracts: A corpse-collecting game
Question: Where does the money made from contracts come from?
Answer: From the corpses in the liquidation pool!
Bull market? Retail investors FOMO chasing up, you high sell short;
Bear market? Retail investors panic selling, you low buy short.
'Price fluctuations don't matter, what matters is who dies first.'
Professional players vs gamblers
Gambler: 'This coin is going to 100x! I'm going all in with leverage!' (Ends up as fuel)
Professional player: 'Win-loss ratio 3:1, 5% trial position, lock in stop-loss.' (Survive, wait for others to make mistakes)
'80% of the time with no position, 20% of the time picking up money — you are not here to trade, you are here to collect corpses.'
Why do 80% of people still lose with the same strategy?
Human nature!
Seeing a spike makes you itchy, seeing a drop makes you weak;
Stop-loss feels like cutting flesh, taking profit feels like quitting an addiction;
Always wanting to get rich overnight, ends up dying overnight.
The ultimate truth
'If you can't control risk, you are someone else's risk-return.'
The more chaotic the market, the colder you need to be!
Don't be fuel, be the hunter.
This market changes every day, you need to pick the right timing to act. If you still feel too confused, you might want to follow along; I usually share some cutting-edge information and practical strategies. Feel free to come and discuss anytime, let's seize the big opportunities together!
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