The prediction market platform Polymarket has staged a shocking loss saga: trader "beachboy4" lost over $2 million in just 35 days. The numbers look almost surreal—despite a winning rate of 51%, he still suffered heavy losses.

This guy's trading style is quite aggressive: averaging $400,000 per bet, with a maximum win of $936,000, but a maximum single loss of $1.58 million. This inconsistent fluctuation is the core issue. He especially likes to chase high-priced contracts aligned with "consensus directions," particularly in high-certainty events like NBA or football, but he doesn't set stop-losses and doesn't know how to take profits proactively. As a result, most of his positions eventually turned into zero.

To avoid falling into the same trap, industry experts have summarized five painful lessons:
1. Be cautious when choosing entry prices—don't blindly chase highs;
2. Risk control should be prioritized—don't wait until liquidation to regret;
3. Always set stop-loss levels—don't rely on miracles;
4. Objectively assess risk-reward ratios—don't participate in every opportunity;
5. Learn to give up—if the market has no advantage, just stay away.

Derivatives trading may sound simple, but in reality, the most difficult part is managing your mindset and executing discipline.