What is the most heartbreaking thing about trading? It's not misjudging the direction, but clearly being right and still ending up losing money.

A friend of mine recently experienced this. He was sure a certain coin would go up, held on for four days, and what happened? The direction was completely correct, but he was gradually drained nearly a thousand U by funding fees. By the time the coin finally took off, his account was already on the brink. This lesson is worth everyone’s reflection.

**First Pitfall: Funding Fees Are Invisible Vampires**

Funding fees are settled every 8 hours. You might think you're making money, but in fact, you're bleeding out continuously. Even if your direction is 100% correct, if you keep paying fees, your profits will be eroded little by little.

How to deal with it? First, pay attention to the fee rate level. Once it exceeds the 0.1% threshold, holding a position long-term becomes unprofitable. The smart approach is to either shorten your holding period or flip to the other side to earn the fees—markets are rules, and even rules can generate money.

**Second Pitfall: Liquidation Price Is Closer Than You Think**

Many people think the liquidation price is just the reciprocal of leverage, but that's not true. When accounting for hidden costs like fees and slippage, the actual liquidation price is often closer to the current price than the theoretical value. This means you might think there's plenty of buffer, but in reality, it can trigger at any moment.

The countermeasure is not to be greedy. Full position trading is a big taboo. Use isolated margin flexibly to control individual trade risk. Keep leverage between 3x and 5x—leave enough room for volatility, and don't gamble your life on risk.

**Third Pitfall: High Leverage Amplifies More Than Just Gains**

High leverage is indeed stimulating, but the problem is that costs like fees and funding are calculated based on borrowed amounts. The higher the leverage, the faster these costs eat into your profits. You might aim to make big money, but instead, they can wipe you out completely.

Practical advice: Use very small positions to test the market with high leverage. The longer you hold, the lower your leverage should be. The higher the leverage, the narrower your margin for error—small fluctuations can be deadly.

**In summary**

Trading seems like betting on the direction, but in reality, it's a contest against rules and costs. The market isn't afraid of you making money; it's afraid that you truly understand the game. Stay alert, master the rules thoroughly, and only then can you walk steadily and far in this market.