CoinWarlord
vip
Age 0.1 Year
Peak Tier 5
Five years of contracts, one year of enlightenment. Initially, I was superstitious about technical indicators, frequently engaging in short-term trading, and once doubled my investment overnight. However, after getting liquidated to zero due to a black swan event, I learned that surviving is more important than making money. There are three core lessons: 1. Light Position is the foundation for survival; I always keep my position controlled within 2% of my total capital. 2. Stop loss is insurance for fate; every trade must include a stop loss, and I never hold a losing position. 3. Give up 99% of fluctuation opportunities, only take action at key positions where the trend is clear, and spend most of the time observing with a short position. After five years, the myth of getting rich quickly is all a bubble. Overcoming greed and fear with discipline, and pursuing low drawdown stability, is the only survival rule in the contract market. In this industry, slow is fast.
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"Losing big and winning small" is indeed a true reflection of many contract traders in the cryptocurrency space. Behind this is not a matter of luck, but an inevitable result of a series of profound human weaknesses, cognitive biases, and market laws.
The following are the core reasons for this phenomenon:
1. The traps of human nature and psychology (this is the main reason)
· Disposition Effect:
· In terms of "big losses": When there are losses in a position, people tend to "hold on stubbornly," unwilling to cut losses, always thinking, "What if it rebounds or drops back?" This kind of wish
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We can categorize the final outcomes of "unwilling to stop loss" into the following situations and analyze the logic behind them:
1. Most likely outcome: liquidation (account goes to zero or close to zero)
This is the most common and most tragic ending.
· Mechanism: Contract trading involves leverage. When you incur losses, it is your margin that is affected. When the losses reach a certain level that your margin can no longer cover the potential losses, the exchange's system will forcibly liquidate your position to protect itself from losses. This is known as a stop loss.
· Why not wantin
BTC-0.79%
LUNA-5.01%
FTT-4.63%
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WealthAndFortunevip:
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