Last week I had dinner with my childhood friend Xiao Li. He said he finally 'picked up half a life' from the contract.

Recently, Bitcoin has been fluctuating around 90,000 USD. He used 5x leverage to go long, thinking he could handle a 3% drop. However, during a sudden drop in the early hours, his 80,000 capital was instantly wiped out —

This scene replayed in the market yesterday.

I just looked at the Coinglass data; in the past 24 hours, 574,000 people have fallen into contracts, with 1.725 billion USD evaporated overnight. Just in Bitcoin contracts, it exploded 184 million USD.

Many people think contracts are a shortcut to 'bet small to win big', but forget that out of the 300% earned with 3x leverage, 200% comes from the 'hard-earned money' of liquidated traders.

Holding onto spot purchases can be endured, but stubbornly holding with leveraged contracts is just offering yourself up.

Xiao Li has learned his lesson now. He always sets an 8% stop-loss when opening positions. Last week, when Bitcoin dipped to 86,000 USD, he triggered the stop-loss and only lost a few thousand. He then waited for a rebound signal to open a position again, and instead made back his previous losses.

Those who really make money do the opposite: staying in cash and waiting is the norm, like a hunter crouching for prey. One time, I saw him staring at the screen for an entire afternoon without moving. I asked him why he wasn’t making any trades, and he said, 'Waiting for a signal is better than randomly buying and getting liquidated.'

It’s like stepping into a boxing ring; those who come in swinging punches too early get knocked out. Observing first and then striking is the key.

Contracts may seem like a simple buy and sell, but in reality, it’s like flying a plane; the stop-loss is the braking system. If you can’t do this, crashing is inevitable.

Novices can play, but they must first learn the real stuff.

I have整理了 these years of risk control notes and operational skills, all of which are gained from real experiences with money. If you don’t want to take detours, how about learning together? @bit冰