The phone kept shaking late at night, and a friend sent me a screenshot—his contract account dropped from 80,000 U to almost zero. He asked me if he was just unlucky. My answer was straightforward: "After eight years of margin trading, you'll realize that liquidation is never about luck, but about not understanding the risks."

I've experienced the same thing myself. Those forced liquidations taught me a rule: seemingly fierce 100x leverage is not actually the biggest enemy. The real thing that can wipe out an account is always heavy position sizing.

**The Scam of Leverage Multipliers**

Many people get scared when they hear about 100x leverage, but that's actually a false proposition. The multiplier itself is not the core issue.

Suppose you have 50,000 U, open a position with 100x leverage, but only invest 500 U to operate. At this point, a 1% market fluctuation results in a 5 U loss—that's no different from a 1% loss in spot trading. But conversely, if you use 5x leverage and fully load your position, a 20% price move in the opposite direction is enough to wipe out your account.

The problem isn't how many times you leverage, but how much principal you put in.

**Stop Loss Is Not About Giving Up**

I saw very clearly the decline in 2024. A group of people lost 5% but stubbornly held on, thinking the rebound would recover their losses. What happened in the end? Their accounts were wiped out.

Stop loss, frankly, is like insuring your account. It's not about being unable to afford to lose, but about ensuring that large losses never happen. This is a reflex that anyone trading contracts must develop.