After losing 1 million, I finally understood: There are 3 traps in the contract specifically designed to exploit retail investors, and if you don't understand, you'll always be passively beaten.
First, let me say a harsh truth:
A contract is not 'buying coins'; it is a gamble. The money you earn is the money someone else loses. The exchange acts as both the referee and the dealer; if you think of it as an investment, you will quickly learn the hard way.
What really causes people to lose a lot are these 3 hidden traps:
1️⃣ Funding rate is not a transaction fee; it is a 'signal' from the dealer.
If the rate is greater than 0.12% for two consecutive days, it basically indicates:
➡️ The side with the higher rate will be harvested next.
Even if you get the direction right, you can still be killed; everyone falls into this trap.
2️⃣ The liquidation price has 'hidden deductions,' closer than you think.
10x leverage does not mean a 10% drop will trigger liquidation; the exchange will deduct an additional forced liquidation fee,
making the actual liquidation price about 1% earlier than the theoretical price.
Many people think there is still room, but in reality, they are already standing on the edge of a cliff.
3️⃣ High leverage is a chronic poison, not an accelerator.
Transaction fees and funding fees are deducted based on the 'amplified position,'
and over time, the principal is slowly drained.
High leverage can only be used for ultra-short-term trades; earn 2%-4% and then exit.
Here are two practical suggestions that can really help you lose less:
① Always leave an exit when rolling over positions.
Only use 40% of profits to roll over, and take 60% as profit to truly protect yourself.
The market's backlash is much faster than you think.
② Your stop-loss, leverage, and liquidation points can all be guessed by the main force.
Why are you always 'precisely liquidated' at critical points?
Because most people's stop-loss points are too standard; the main force can easily insert a needle and clear you out, which is a typical 'targeted demolition.'
My usual approach is very simple:
Quickly enter and exit contracts for short-term trades, and maintain a stable long position with spot trading,
so you don't have to gamble your life every day to keep making money.
If you want to continue learning something more practical, my next article will discuss 'reverse orders'—
how to counterattack the main force and make back what you lost in the past.
