Many people get liquidated in contracts and always feel it's due to bad luck.
To be blunt — it has little to do with luck; it's about not understanding the rules.
After so many years, I finally realized something very simple:
👉 Whether you get liquidated or not can actually be calculated in advance.
Many people get scared when they hear 100 times leverage,
but the real danger has never been the leverage itself,
but rather — the position size is too heavy.
Let’s use the simplest logic:
You use 100 times, but only use 1% of your capital to test the waters,
the risk is actually very manageable.
What truly determines life and death is this:
👉 Leverage Multiplier × Position Ratio
Why do many people lose everything right away?
Because of two words:
Too heavy, too aggressive.
Another key point — stop loss.
Most people's approach is:
Lose 5% and don’t exit, hoping for a rebound,
but the longer they wait, the worse it gets, and they end up getting liquidated.
Experienced traders have a strict rule:
👉 A single loss should not exceed 2% of the capital
That way, even if you continuously make wrong judgments,
the account can still survive.
For taking profits, I always use the simplest method:
Profit 20%, take some off
Profit 50%, take off some more
Let the remaining profits run
Not flashy, but very practical.
Ultimately, trading can be summed up in one sentence:
Don’t rely on feelings, rely on rules.
The market is always there,
but many people aren’t unable to make money,
they simply can’t survive to the next round.
Lastly, a realistic statement:
When a person is exploring alone, it's very easy to take the wrong path.
Having a clear method and executing with rhythm,
is far more important than blindly going solo.