Similarly, in cryptocurrency trading, why do some people profit while others face liquidation? Check the following situations to see if you have 'fallen victim'!

In the crypto world, many people continue to trade even after facing liquidation, mainly for the following reasons:

Influence of speculative psychology

- Desire for quick profits: The high returns of contract trading are highly attractive, and for many, it is seen as a shortcut to rapidly growing wealth. Compared to other investment avenues, they firmly believe that contracts can bring huge profits in a short period. This strong desire for quick turnover makes it hard for them to give up, even after experiencing liquidation. Just like some people witness others becoming wealthy overnight through contract trading, they fantasize about becoming lucky as well and continue to invest even after liquidation.

- Unyielding mentality: After liquidation, most people find it hard to accept failure, feeling that it was just bad luck or operational mistakes, firmly believing that they will definitely win back their losses next time. This unyielding mentality drives them to continue participating in trading, trying to recover from their losses. For example, some people may face liquidation due to a misjudgment in contract trading but believe that their market analysis is mostly correct, attributing their failure to unexpected factors, thus deciding to try again.

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- Overconfidence: Some investors are overly confident in their trading abilities, thinking that through learning and training they can master contract trading skills, thereby ignoring potential risks. They believe they can accurately predict market trends in a complex environment to achieve profits. For instance, some novice investors feel they can engage in contract trading after learning some basic trading knowledge, without fully realizing the market's uncertainty and risks.

- Misunderstanding of risk: Some individuals have insufficient awareness of the risks of contract trading and fail to truly understand the serious consequences of liquidation. They might view liquidation as a temporary setback, not realizing it could lead to significant financial losses or even bankruptcy. For example, some people focus solely on potential gains during trading, ignoring risk warnings, thinking they can control the risks, and end up regretting it deeply after liquidation.