Why Do You Always Lose When Trading Contracts? The Truth Might Be More Harsh Than "Bad Luck"

Many people enter the crypto futures market with the same familiar script: initially making a few small trades, gaining confidence, thinking they are “naturally talented traders.” But just one strong market move can wipe out the entire account in minutes. Stop losses are hit right at the bottom, liquidation prices are “precisely touched”—this is not just an illusion. In the futures market, this is almost everyday normal. Below are the core reasons why most futures traders remain perpetual losers.

1. Every Order You Open, The Exchange Might Be On The Opposite Side Many believe futures trading is a battle of wits with the market. But the harsh reality is: your opponent could be the exchange itself. The exchange holds all critical data:

• The positioning of most traders
• Where stop losses are set
• The liquidation prices of each account cluster When the market experiences sharp movements, phenomena like “wicking” (rapid price spikes or drops then reversals) happen constantly. As a result, many stop losses are hit, positions are liquidated, and then the price returns to previous levels. Is that just a coincidence? Many in the industry admit: some platforms can manipulate prices during low liquidity periods to accelerate liquidation processes. Even during “account breach” (auto-deleveraging) events, traders who are in profit can also be forced to take losses. This game is designed so that:
• The exchange always wins
• Traders: winning is luck, losing is inevitable

2. High Leverage Is Not An Opportunity, But A Cliff 50x, 100x, even 125x leverage sounds extremely attractive. But a simple calculation shows:

• 125x leverage → 0.8% adverse move → account wiped out Meanwhile, Bitcoin fluctuates 5–10% per day as a normal occurrence. Events like the LUNA crash caused prices to drop 99.99% in just a few hours. Leverage not only amplifies profits but also amplifies greed and fear:
• When losing, traders want to hold on, doubling down to recover
• When winning, they become greedy, thinking the price will go higher Just one big mistake can wipe out all accumulated profits.

3. Your Psychology Has Been “Programmed” From the Start Most traders lose not because they lack analysis skills, but because they lose within their own minds. Fear of loss: Losing $1,000 hurts much more than the joy of earning $1,000. In reality, you need about $2,500 in profit to offset that emotional pain. Therefore, most traders hold on to losing positions… until their accounts are wiped out. Excuses for gambling: Losing five consecutive trades and believing “the next one will definitely win,” then increasing position size and leverage. Overconfidence: 80% of traders think they are above average, but statistics show over 90% of futures traders lose in the long run. Exchanges understand these weaknesses very well. They continuously:

• Promote high leverage
• Offer trading incentives
• Encourage constant trading The more you trade, the more fees and funding rates silently drain your account.

4. Small Coins Surge? Don’t Let “Hot Picks” Cost You Your Life Rapid increases in small-cap coins are often wrapped in very attractive stories. But the reality behind them is usually:

• Low liquidity
• Concentrated capital
• Easy to manipulate—and even easier to crash This market style is like a game of hot potato: whoever holds the coin when the music stops is the one who gets burned. If you chase with futures, just a withdrawal of funds:
• Causes sudden volatility
• Clears stop losses and liquidations within seconds For individual investors, small coin futures are far more dangerous than BTC or ETH. Sometimes, just observing from outside is the smartest choice. Conclusion: To Survive, First Admit You Are Not “The Chosen One” If you want to survive long-term in this market, remember a few survival principles:
• Leverage no more than 5x
• Most professional traders use only 2–3x. There’s no reason to think you are better than them.
• Risk per trade ≤ 2% of your account
• Keep the psychological resilience to continue trading even after losses, avoiding revenge trading
• Never use your living expenses Futures are highly speculative; only use idle funds.
• Always set stop loss and take profit
• Don’t dream of selling at the top or buying at the bottom. Making a profit from a “body of the fish” is already a win. The market is full of stories of rapid wealth, but those who last long rely on discipline, not luck. If you keep getting “feathered,” it might be time to change direction: hold spot, DCA, mine coins, invest long-term. In crypto, sometimes slow is fast.