Solo traders in derivatives often fall into a strange cycle: their account funds shrink day by day, yet they can never find the root cause. Many traders think it's a matter of luck; in reality, quite the opposite — success or failure in contracts is always determined by systemic factors.

My experience of turning 8,000 into a much larger sum has made me see a phenomenon: those who make it to the end are not gamblers, but people who truly understand risk.

**The True Face of Leverage**

Many people have fatal misunderstandings about leverage. Do you think 20x leverage with high odds can quickly double your money? Wrong. Leverage is not a linear magnification but an exponential explosion of risk. A single liquidation, and you're out — no slow loss process. Even more painful is that the transaction fees generated by frequent trading silently eat away at your principal — an invisible cost most people haven't calculated.

There's also a mathematical problem worth calculating: losing 90% of your principal requires a 9-fold return to break even. This path to recovery is perilous; a slight misstep can wipe you out entirely.

**Practical Application of the BOLL Indicator**

Discussions about the BOLL indicator in the market are everywhere, but most people fall into the same trap — not understanding the deep meaning of "opening" and "closing," blindly chasing one-sided trends, and ultimately falling for false breakouts and stagnation.

When used correctly, this indicator can help you accurately identify trend turning points. There was a period when I used it to determine entry and exit points, achieving returns of up to 30 times in a month. The key lies in understanding the underlying market psychology, not just mechanically reading the line positions.

**The Current State of the Crypto Market**

Tokens like $PEPE, with their extreme volatility, test traders' psychological resilience and strategic execution. When the market rebounds, beginners are most likely to fall into the trap of "feeling-based trading" — no system, relying solely on intuition. The result is a vicious cycle of repeated liquidations, reinvestments, and further liquidations.

To break this cycle, you need a mature trading system. This system includes risk control, entry logic, stop-loss settings, and the integrated application of technical indicators. No single indicator can solve all problems; it’s the coordination of multiple dimensions.

Contract trading is fundamentally a game of probabilities. Winners are not those who win once but those who maintain a long-term advantage in probability. Therefore, instead of chasing overnight riches, it’s better to understand market laws and manage risks properly.