Recently, a fan found me and said that they were on the right track, but the order was held for four days and finally got charged 1000U in funding fees. After getting liquidated, the market surged, and their mindset collapsed.

In fact, this is not the fault of the market, but rather that you haven't understood the rules of contract trading. The truth of contracts is not just about simple rises and falls, but rather some invisible traps. Many people fall into these pitfalls because they overlook these details.
Today, I will reveal to you these common pitfalls. By avoiding them, your journey in contracts may be more stable.
The first pitfall: funding fees, quietly eating away at your profits.
Many people focus on the candlestick charts but overlook the impact of funding fees. Funding fees are charged every 8 hours, and the platform will charge fees based on the direction of your long or short orders.
If you go long and the rate is positive, you have to pay the short; if you go short and the rate is negative, the short has to pay the long.
For example, if you go long and the direction is correct, but you hold the position for several days and get charged hundreds of U in funding fees, you will eventually Get Liquidated. After closing the position, the market will take off.
Pitfall suggestions:
Avoid high fee rate time periods.
Control the holding time, preferably no more than 8 hours.
If the direction is clear, try to be on the opposite side of the funding fee.
The second pit: the liquidation price is not the line you calculated.
Many people think that a 10x leverage would only get liquidated after a 10% drop, but they end up being force liquidated after a 5% drop. Why?
The platform will add a liquidation fee, and the actual liquidation price will be lower than what you calculated.
Solution:
Don't be fully leveraged, use isolated margin mode to protect yourself.
Keep the leverage between 3 to 5 times to avoid high leverage risk.
Leave sufficient margin, extend the liquidation line, and give yourself more time for a rebound.
The third trap: High leverage = Get Liquidated
100x leverage looks exciting, but there are significant hidden costs. The fees and funding costs are calculated based on the borrowed funds, so even if the direction is right and you make a profit of a few hundred U, you might end up losing money at settlement.
Suggestion:
High leverage shorting, low leverage holding.
The higher the leverage, the greater the risk, don't act impulsively.
Exchanges are not afraid of you making money; they are afraid of you understanding the rules!
Many people think that contract trading is just about watching the market, but those who can make money are often the ones who understand these rules.
What contracts fear the most is not the market, but your lack of understanding of the rules.
It is very difficult for this market to continue relying on just one person.
Now, I have a repaired road here, will you walk it?
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