Why should we remind impulsive individuals to avoid contract trading? Let's understand this through a real tragedy in the crypto world.

During the bull market in 2021, a friend of mine invested over 700,000 yuan and quickly made over 5 million. At that time, whatever coin he bought would rise, as if money was not being made fast enough. Later, he even opened a contract account, and after learning about it, his earnings skyrocketed, making him feel very excited.

One day, he suddenly asked me if I had any good coins to invest in, and mentioned that investing in small coins was inconvenient for him. Hearing this made me uneasy, and I asked him where he got so much funding. He told me that this money was obtained through five times leverage financing, and the interest was not low, plus a month's interest had to be deducted in advance.

I was worried that he might encounter problems doing this, but he was very confident, saying it was absolutely safe because it was introduced by someone in the securities industry. Even so, I felt that the market was about to end, and I urged him for three consecutive days to liquidate his contract account, but he didn't listen, believing there would be no major issues.

As a result, a few days before the 519 incident, Musk suddenly announced that he would no longer accept Bitcoin for car purchases, causing the price of Bitcoin to plummet by 34% in one day. Other coins were also severely impacted, with Dogecoin, Shiba Inu, and others dropping by over 50% to 60%. Since then, I have never heard him mention anything about the crypto world again. Later, I found out that he had suffered a loss of over 18 million due to liquidation.

That night, he cried very sadly and even contemplated doing something foolish. His wife comforted him all night, fearing that he might take any extreme actions.

After that, the couple moved to another city and lost contact from then on.

So now, if someone asks me about contract trading, unless they can strictly follow my strategy, I will not easily recommend them to participate in contract trading. This story tells us that contract trading is extremely risky, and those who are easily impulsive should stay away from it.