I can feel your frustration and confusion after the losses in the crypto world futures trading. Losses are always painful, especially in the highly fluctuating crypto assets market. You know you are not alone—many traders have experienced similar setbacks, and what matters is how to learn and grow from them. Let me help you analyze the possible reasons and provide you with some practical advice.

📉 The main reason for losses in crypto world Futures Trading

1️⃣ Excessive Leverage and Risk Control

Many traders are attracted by the "get rich quick" illusion of high leverage, yet they overlook the risks. When using 10x, 20x, or even 100x leverage, even a small fluctuation in the market can lead to liquidation. In reality, over 85% of Futures Trading traders ultimately incur losses due to uncontrolled leverage.

2️⃣ Emotion-Driven Trading

When the market is in severe fluctuation, fear and greed often dominate decision-making:

· FOMO (Fear of Missing Out): chasing highs and cutting losses, entering at peaks
· Revenge Trading: Eager to recoup losses after a downturn, which instead amplifies the losses.
· Unwilling to cut losses: Holding onto the illusion that "it will eventually bounce back," resulting in greater losses.

3️⃣ Market Manipulation and Information Asymmetry

The crypto world has a noticeable "whale effect," where large capital holders can create market fluctuations through concentrated buying and selling, triggering a chain of liquidations, and profiting from it. Ordinary traders often become the victims of these operations.

4️⃣ Lack of a sustainable trading strategy

Many people trade without a clear strategy:

· There is no clear entry and exit plan.
· Ignoring technical analysis and fundamental research
· Blindly following the so-called "masters" signals

🔍 How to Improve Futures Trading Performance

To improve your trading results, it is recommended to focus on the following aspects:

1️⃣ Strict Risk Management

· The risk of a single transaction should not exceed 2% of the principal: This is the golden rule for professional traders.
· Always set a stop loss: determine the loss range you can bear before entering.
· Reduce leverage usage: Try using 3-5 times leverage instead of 50-100 times.

2️⃣ Formulate and adhere to a trading plan

Create a clear trading plan template:

Trading Elements Specific Rules Your Execution Status
Entry conditions must meet at least 3 technical indicator signals [记录你的实际执行]
Stop loss position 2% outside the previous low/high [Record your actual execution]
Take profit target Risk-reward ratio of at least 1:2 [Record your actual execution]
Maximum position should not exceed 10% of funds [Record your actual execution]

3️⃣ Emotional Control and Mindset Development

· Regular Breaks: Leave the market for at least 24 hours after consecutive losses.
· Trading Log: Records the emotional state and decision-making process of each transaction
· Meditation Practice: 5 minutes of meditation daily helps improve calmness during trading.

4️⃣ Continuous Learning and Simulation Practice

· Practice with a simulated account for at least 3 months.
· Learn the basics of technical analysis (support/resistance, trend lines, candlestick patterns)
· Focus on a few coin pairs to become an expert rather than a jack-of-all-trades.

🌱 Rethinking the Path of Trading

Futures trading in the crypto world is essentially a high-risk activity, with less than 5% of traders achieving long-term stable profits. Before starting again, ask yourself a few questions:

· Do you have enough funds to withstand high risks?
· How much time are you willing to spend learning trading knowledge?
· What is your exit strategy if you continue to incur losses?

Excellent trading is not the ability to predict storms, but the art of building an ark—it stems from managing risks rather than chasing profits. Protecting your capital curve is more important than the success or failure of any single trade.

I hope these analyses can help you identify the problem and make more informed trading decisions in the future. If you have more specific questions, I am more than happy to continue assisting you.