3-Minute Warning for Contract Traders: Understand These, or You Might Lose 100,000
Friends playing contracts, please take three minutes to read this carefully. Many of the "troublesome issues" you encounter—opening a position only to have it reverse, getting stopped out only to see prices surge, seeing the right direction but losing all your capital—are not due to bad luck but rather a misunderstanding of the game rules.
1. First, recognize the reality: you are not "trading", you are gambling
The essence of contracts is a gamble between players and exchanges. The money you earn comes from others' losses; the money you lose ultimately flows to the exchange and other players.
Those easily overlooked details are often the knives that cut the grass:
Funding rate: Continuous positive funding rates are often a "trap to lure in buyers". When retail investors follow the trend and enter the market, the situation often reverses and they get harvested.
Leverage is a double-edged sword: while it amplifies profits, it also magnifies risks and wear. Fees, funding costs, spreads, liquidation prices... layer upon layer of consumption can drain your account without you realizing it.
Liquidation mechanism: Don't think that 10x leverage can withstand a 10% fluctuation. The liquidation price is calculated closer than you think; a small fluctuation is enough to liquidate.
Rolling position risk: Using profits to go all-in on the next position? Once the market reverses, the profits and the capital return to zero together. Rolling positions must be done step by step—at least withdraw half of the profits and only use the remaining part to continue.
2. Want to survive in the contract market? First, achieve these two points
1. Give up the “get rich quick fantasy,” and learn the rules first
Before you invest real money, please ensure you understand: how the funding rate is calculated, the true cost of leverage, the relationship between liquidation mechanisms and position sizes. The market does not let those who understand the rules lose.
2. Don’t bear it alone
It's easy for one person to get stuck in a rut and repeatedly step into traps. Find a reliable community or guide who can help you avoid most traps and walk more steadily and farther.
I am not some “ever-victorious master,” just someone who entered early, made many mistakes, and luckily survived until now. I sincerely say: don’t always complain about being “targeted for liquidation” — the market never targets anyone; it’s just that many people stand on the opposite side of the rules.
Those who can truly survive in contracts are not gamblers but rather clear-headed players who calculate probabilities and adhere to discipline.
If you also want to take fewer detours and systematically learn practical contract methods, I can guide you through it.
