The direction is right, but still being worn down by the squeeze of funding fees and forced liquidations—this is not uncommon. To put it plainly, you didn't lose to the market, but to not fully understanding the game rules.

There are three hurdles in futures trading. If you don't understand these, even the best technical skills are useless:

**Funding Fee, the Invisible Killer**

Settles every 8 hours. When the rate is positive, longs pay shorts; when negative, shorts pay longs. It seems small, but holding positions long-term can be disastrous—profits are slowly eroded. Many people get the direction right but still end up losing money due to funding fees.

How to break through? Avoid those crazy periods where the rate exceeds 0.1% continuously. Don't hold positions too long in a single trade; during high-rate periods, you can even open opposite positions to "collect rent."

**Liquidation Price Is Closer Than You Think**

The ideal calculation is 10x leverage with a 10% drop leading to liquidation. But in reality, platforms charge fees and account for slippage, so a 5% drop might trigger a liquidation immediately. That's why never operate with full position size; prefer isolated margin mode, keep leverage between 3-5x, and leave enough buffer space.

**High Leverage Is a Double-Edged Sword**

100x leverage sounds exciting, but fees and funding costs are calculated based on borrowed funds. Even if your direction is perfect, the small profit might not cover the costs. High leverage is only suitable for ultra-short-term quick trades. If you want to catch a trend, low leverage is the right way.

Trading platforms aren't afraid of your technical skills; they're afraid you don't fully understand these rules. Many people with limited capital think they must use high leverage to turn things around, but they end up getting out faster. On the contrary, mastering the rules, controlling leverage and fees, even with small capital, can help you grow your position.