#美SEC促进加密资产创新监管框架 Why do contracts always get liquidated? Most people simply don’t understand these core principles

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Many people freak out when it comes to contracts, thinking it’s just gambling. But after eight years of trading, I’ve realized liquidations are never about luck—it’s that you’re not taking risk management seriously.

The following insights may completely change your view on contracts.

**Rule 1: Leverage isn’t the key—your position size is the real risk**

Opening 100x leverage sounds scary, right? But if you’re only risking 1% of your account on the position, your actual risk is the same as going all-in on spot and losing 1%.

Remember this formula: your real risk exposure = leverage × position size. Don’t be fooled by the surface numbers.

**Rule 2: Stop-losses are mandatory, not optional**

During the 2024 crash, stats show 78% of liquidated accounts had one thing in common: they held on after a 5% loss, hoping to bounce back.

Experienced traders swear by one golden rule: never lose more than 2% of your total capital on a single trade. This isn’t being conservative—it’s the bottom line for survival.

**Rule 3: Do the math before you enter a trade**

Here’s a simple position sizing formula: max position size = (account balance × 2%) ÷ (stop-loss percentage × leverage).

Example: With a $50,000 account, you’re willing to lose at most 2% per trade, using 10x leverage. That means your max position is $5,000 per trade. Anything more and you’re just gambling.

**Rule 4: Take profits in batches—don’t try to eat the whole fish**

Take profit on 1/3 after a 20% gain, another 1/3 after a 50% gain, and close the rest if it drops below the 5-day moving average.

In 2024, a friend used this staggered take-profit strategy to turn $50,000 into $1,000,000. Greed is the enemy of making money.

**Rule 5: Buy some “insurance”—it could save you**

While holding a position, use 1% of your capital to buy a put option (basically insurance for your position). This can protect you from 80% of black swan risks.

During the sudden 2024 crash, this strategy saved 23% of my capital. Small money for peace of mind—worth it.

**Run the numbers: can you actually make money trading?**

Expected profit = (win rate × average win) – (loss rate × average loss).

Say your max loss per trade is 2% and your take-profit target is 20%. Even with just a 34% win rate, you’ll make money over time. The key is risk/reward ratio—not win rate.

**Four hard rules—post them on your wall**

Never lose more than 2% of your capital per trade; keep total trades under 20 per year; risk/reward ratio of at least 3:1; stay in cash 70% of the time and only act on high-confidence opportunities.

Trading is about discipline, not gut feelings. Follow your system, and you’ll go further.