Losses in contract trading are never accidental; they are inevitable. Many newcomers are attracted by the high volatility of digital assets but underestimate the cost of risk. We often see stories like this: someone makes a huge profit and becomes overly confident, casually opening 100x leverage, only to end up losing everything. This is not an isolated case; it’s a pattern.

Many people fail to realize a fact: trading contracts requires top-tier technical skills and strong psychological resilience. Otherwise, you’re just working for the exchange, and still unpaid. It’s like the joke during the liquidity mining boom years: if you don’t know who the source of the returns is, then you are the one providing the returns. Is that harsh? Maybe. But that’s the reality.

Where does core competitiveness lie? Entry point. No matter how much you emphasize this, it’s not enough. Even if your market direction judgment is completely correct and the price indeed rises, if you enter at a high level, a significant pullback will inevitably lead to huge unrealized losses. Once your psychological defenses collapse, the next step is a margin call warning, followed by liquidation. Sometimes people choose to cut losses, sometimes they go short to turn the tide, but often the market reverses again, leaving you battered.

In this war without gunfire, timing your entry determines your life or death. Only traders who truly understand this are qualified to be participants in the capital markets.