The trading circle has once again staged a dramatic reversal. Yesterday, there was a promotion of a trading account with a 100% win rate, and today it was directly liquidated. The funds behind this account amount to over 1 million USD, and the real spectators have turned into the final payers.
The typical pattern of this operation is: a small account starts with 1000 USD, profits reach 3000 USD in a short period, then a big gamble — and it’s wiped out to zero. Watching the big traders copying the trades, they probably have already lost their composure.
This incident reflects an old problem: in high-leverage trading, so-called "stable compound interest" often cannot withstand a market correction. Many people jump in following the trend but fail to calculate the true cost of liquidation. Risk is always easier to realize than reward, and this event is a vivid example.
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The trading circle has once again staged a dramatic reversal. Yesterday, there was a promotion of a trading account with a 100% win rate, and today it was directly liquidated. The funds behind this account amount to over 1 million USD, and the real spectators have turned into the final payers.
The typical pattern of this operation is: a small account starts with 1000 USD, profits reach 3000 USD in a short period, then a big gamble — and it’s wiped out to zero. Watching the big traders copying the trades, they probably have already lost their composure.
This incident reflects an old problem: in high-leverage trading, so-called "stable compound interest" often cannot withstand a market correction. Many people jump in following the trend but fail to calculate the true cost of liquidation. Risk is always easier to realize than reward, and this event is a vivid example.