Why Do You Always Lose Money Trading Contracts? The Truth Behind Every Account Blow-up

Every account burn-out always stems from weaknesses you don’t want to admit. Many people believe that “they have correctly identified the trend,” so they should have profits. But in reality, following the right trend does not mean proper risk management. Just a small mistake in capital management can cause the market’s slight fluctuations to wipe out the entire account.

1. Leverage Is Not the Enemy; Position Management Is the Key Many mistakenly think lowering leverage is safer. The truth is, the size of your position determines the level of risk. You have 10,000 USDT. Open a 5x leveraged position. You should only use 2,000–3,000 USDT to enter the trade. But you go all-in with 10,000 USDT. In that case, the actual risk is amplified many times. Just a 2% price move against you can wipe out your account. The leverage number displayed on the exchange is only theoretical; real risk depends on the proportion of capital you allocate to a single trade. Conclusion: Low leverage won’t save you if your position size is too large.
2. Illusion of Safety: When “Stability” Actually Means High Risk Many traders think: “I will only lose a maximum of 500 USDT.” But they open positions too large relative to their accounts. A small price swing can trigger liquidation. A 10,000 USDT account opening a nominal position of 25,000 USDT, thinking it’s 5x, but the real risk could be 30x–50x. Exchanges are not obligated to warn you about this. They make money from trading fees and volume. Every time you trade emotionally, the system benefits. Conclusion: “Stability” only exists when positions are small and risks are controlled.
3. True Money Makers Spend Most of Their Time Waiting Contrary to popular belief, professional traders do not trade constantly. They may spend 60–70% of their time observing and only enter trades when the probability of winning heavily favors them. Meanwhile, most losers: Want to close immediately after a loss Trade more during chaos Transaction fees increase, psychology becomes chaotic, leading to a series of bad decisions On Wall Street, many funds have win rates of only 35%–50% but still maintain steady profits thanks to a high reward/risk ratio: small losses, big wins. Conclusion: Making money is not about the number of trades, but about the quality of opportunities.
4. Surviving in the “Unfair” Game The derivatives market is unfair: exchanges have advantages in rules, liquidity, and data. But you can still survive if you follow discipline: Principles of survival Risk only up to 2% of total capital per trade Stop trading if daily loss reaches 5% Always set a stop-loss before entering a trade Choose the right market Avoid low-liquidity coins, small open interest – very easy to be manipulated or liquidated Prioritize BTC, ETH – good market depth, harder to manipulate Don’t blindly follow tips Most “experts” on social media are selling emotions and traffic Skilled traders don’t need to show profit screenshots every day Conclusion: Discipline is your only armor.
5. Trading Is the Manifestation of Perception You can only make money within the scope of your understanding. If: You haven’t learned candlestick analysis You don’t understand support and resistance You haven’t grasped the ADL mechanism( that automatically reduces positions) during strong market movements … then you are gambling, not trading. To be sustainable, you need: Learn basic technical analysis Create a clear trading plan Follow the script like a machine, without letting emotions interfere Conclusion: The more awareness you have, the more profits you can achieve. Final Words The market is not short of opportunities. What’s lacking is capital intact and a clear mind when opportunities arise. If you are still losing, stop and ask yourself: Is there really no opportunity? Or have you repeatedly destroyed it yourself? Change is never too late, as long as you dare to face the problem: Reduce your position size Strengthen discipline Manage your emotions The market always rewards patient and disciplined people. Learning is your most profitable investment.