2026-01-06 23:21:39

There is an interesting phenomenon in the market: every day, there are news reports of contract liquidations, yet people keep rushing in continuously. Some compare this to a bargaining game in a group buying mall, but I think a more accurate description is—this is a collective frenzy of "cognitive dislocation." You think you're trading with 5x leverage, but in reality, you've silently opened up to 60x, fooling yourself into believing it's as stable as a rock.

After years of navigating and struggling in this market, I have to say something harsh: contract trading tools themselves are innocent, but those who rush in without understanding the rules are, frankly, actively feeding others' gains.

**The Trap of Leverage Numbers**

A common scenario: depositing 10,000 USDT in an account and deciding to use 5x leverage—sounds conservative, right? But the trap lies in the position sizing—you put in 30,000 USDT as the principal at once, and your risk exposure actually skyrockets to 60x. This is because the platform calculates leverage based on the margin, while most people naively think "smaller position = less risk."

This illusion is similar to driving and only looking at the steering wheel, completely ignoring the fuel gauge. Those who truly survive through trading have long kept their potential loss per trade limited to 1%-2% of their total funds. Even if they make a wrong judgment, they still have some buffer to wait for the next opportunity.

**The Little-Known Secret of Consistent Profit Makers**

Why can some people keep making money with contracts? The secret is actually counterintuitive—they spend about 70% of their time doing nothing. When market signals are unclear, they stay still; when trading volume is sluggish, they stay still; when candlestick patterns are unconfirmed, they resolutely do not trade.

During market panic, they remain calm and watch the charts carefully. When the fear and greed index drops below 20 (a serious oversold signal), many people are scared and cut their losses, but they start building positions gradually. When others are greedily dazzled, they have already set their stop-loss orders and are ready to exit. This sense of rhythm is not innate but is muscle memory formed through repeated market education.

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DefiOldTrickster

· 2h ago

Oops, another "I'll just open 5x" rookie about to be liquidated, betting on this kind of cognitive blind spot. --- A 1%-2% stop loss? I was taught this back in 2017. It wasn't until my account went to zero that I understood. --- Not acting 70% of the time? That's the real secret to annualized returns, earning way more than those who are constantly bottom-fishing. --- Still daring to cut losses when the fear index is below 20? Serves you right for being harvested; this is called actively feeding others' pockets. --- If you can't understand the liquidation price, don't touch contracts. Really, this isn't gambling—it's like giving away money. --- Some people really think small positions mean low risk? I laugh. They don't even understand the basics of margin. --- Wait, putting in 30,000 USD with 5x leverage becomes 60x? Why does this math seem off to me? --- I believe in the set of traders who make consistent profits, but only if you've survived a few margin calls to understand. --- Staying still is easy to say, but those who can truly resist the urge to act are rare as phoenix feathers. --- On-chain data, stop-loss orders, position allocation—these basics still need to be taught hand-in-hand? No wonder there are so many rookies in the market.

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MidnightGenesis

· 22h ago

On-chain data shows that in this wave of liquidations, most people have completely misunderstood the calculation logic of the margin base. During late-night monitoring of contract deployments, it was found that many accounts' actual risk exposure is entirely different from their perceived leverage multiples. Based on past experience, the illusion of 60x risk often stems from a misunderstanding of the platform's algorithm, and this is no surprise. The interesting part is that those who truly survive have long used code-level risk control standards to cap the maximum single-loss limit; the 1-2% figure is not a suggestion, but an iron law. From the code perspective, the market is like a continuous stress testing environment, where the 70% observation period actually serves as a screening mechanism.

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FantasyGuardian

· 01-06 23:51

Basically, it's about having no clear understanding and insisting on using the margin as the total funds for calculations. Those who throw themselves into the front line are all of this type. Staying still 70% of the time is a game changer; truly profitable people are not as busy as you think. You probably have to experience a few margin calls to truly understand these principles. I just want to ask, how many people can really resist not taking action? It sounds simple, but when it comes to actually doing it, who isn't greedily risking their lives. This has been explained thoroughly, but unfortunately, not many have truly listened.

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EternalMiner

· 01-06 23:45

60x leverage still claims to be as stable as a rock, which is ridiculous. Eventually, the market will expose it.

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Blockblind

· 01-06 23:37

Another piece of advice for the world, but to be honest, it hits the nerve, as many people simply don't want to hear it.

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BasementAlchemist

· 01-06 23:36

Oh, I've heard this theory many times, but I haven't seen many who can really stick with it haha Sticking to a 1-2% risk, it sounds simple but it's extremely difficult to execute. When a big drop happens, you forget everything Spending 70% of the time doing nothing? I believe it, but actually, 90% of that time is spent watching my sister's live streams People who are truly making money have long since made a fortune, and they're still sharing their secrets here. If you believe it, that's just unbelievable

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EthSandwichHero

· 01-06 23:28

I am part of the group that has been educated in the contract market. The fact that 70% of "steady players" stay on the sidelines is particularly heartbreaking because it took me two years to understand this principle. --- Seeing the example of opening 5x leverage with 10,000 USDT, I was reminded of my past self—truly like blind men feeling an elephant. --- To put it simply, those who can make money while alive have all been taught lessons through liquidation. Without being beaten by the market once, you simply can't understand. --- This article hits hard. Most people have no idea how many times they've actually used leverage, yet they feel confident. --- Staying inactive 70% of the time is the real skill, but everyone thinks they are among the lucky 30%. --- So next time I see someone bragging about how steady they are, I think of this article. Nothing feels better than a good slap in the face.

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