The most frequent excuse I've heard in the circle is: "This wave of liquidation was just bad luck." But after years of trading in the futures market, I want to say—this is not just bad luck.

The vast majority of liquidations happen for just a few reasons: not understanding position rolling, poor risk management, or emotional instability during volatility. Looking at those traders coming and going, their deaths are shockingly similar—either rushing to exit at the start of a trend, missing the main upward wave; or correctly judging the direction, but getting shaken out by a small retracement; or the most dangerous scenario—adding to a position as it falls, until full margin is reached, and then a single rapid move wipes everything out. This is not trading; this is gambling.

**What is the real truth behind liquidation?**

Simply put, liquidation occurs when your margin cannot withstand the losses, and the system forcibly closes your position. The common reasons are: over-leveraging (using high leverage), not setting stop-losses (holding onto hope), frequent trading (fees eating into principal), or adding to losing positions (hoping the market will turn around).

All of these are risk management issues, and have nothing to do with luck. With 10x leverage, a mere 10% adverse price movement can wipe you out; with 20x leverage? Just a 5% move against you can force liquidation. High leverage amplifies gains but also multiplies risks.

**True position rolling is not all-in, but strategic**

Many people think of position rolling as "adding to a position when floating profits increase, and adding more as profits grow," but that’s not position rolling—it's just giving money to the exchange. Those who truly know how to roll positions understand when to add, how much to add, and how to do it in stages—this is science, not gambling. Rules are more important than courage; systematic risk management is the only way to survive longer.