Woken up at midnight by a deadly call, the voice of my buddy in Shenzhen came through the screen, sounding desperate:
"Buddy, help! I opened a 10x long position with 10,000 dollars, and the market only dropped by 3 points, and my account evaporated instantly, what the hell?!" Check his position records, buddy, he went all in with $9500, stop-loss line? Not a thing. Too many people think that using the full margin mode means having a strong risk tolerance, but the truth is quite the opposite—if the full margin is used incorrectly, the losses can be even more severe than with the isolated margin. **Why do 95% of people treat full positions as a life-and-death issue?** Let's calculate with a principal of 1000 dollars: You invest 900 bucks with 10x leverage, and if the coin price moves against you by 5%, you die right there. But if you only invest 100 dollars at the same multiplier, the coin price would have to soar 50% in the opposite direction to get liquidated. My buddy is a typical case—putting almost all his fortune into a one-sided market, and under 10x leverage, a slight pullback triggered liquidation. **I rely on these three tricks, using my entire position for half a year without getting liquidated and even doubling it** **Tip 1: Do not invest more than one-fifth of your total funds in a single transaction** I have ten thousand dollars in hand, and I can throw in a maximum of two thousand dollars at a time. Even if the direction is wrong and I stop loss at 10%, I would only lose 200 bucks, the principal is still there, and there are plenty of opportunities to make a comeback. **Second Move: Lock the maximum drawdown of a single transaction within 3% of the total position** For example, using 2000 dollars with 10x leverage, setting a stop-loss order at 1.5% in advance, if triggered, results in a loss of 300 dollars, which is exactly 3% of the entire account. Repeated mistakes in judgment won't fundamentally harm anything. **Third move: Do not take action in a sideways market, do not increase positions in a profitable state** Only take certain opportunities after trend breakthroughs; no matter how tempting it is to trade in a sideways market, resist the urge. Once the position is established, never add more; do not let emotions dictate your actions. **The correct way to open a full position: leave it blank, rather than gamble your life** The essence of the full position mechanism is to provide a buffer zone for fluctuations, but the core premise is to experiment with a light position and implement strict risk control. Previously, a buddy named Yueyue was margin called. After strictly following this strategy, he rolled from $5000 to $8000 in three months. He later told me: "I used to think that going all in was gambling with my life, but now I understand that going all in is to live more steadily." The survival rule of the crypto market has never been about who makes the most money, but rather about who can last until the end. Bet less on direction, manage positions more, slow is fast. $ETH
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Contains AI-generated content
5 Likes
Reward
5
1
Repost
Share
Comment
0/400
MotherHo
· 12-01 05:00
Must like, invest rationally, reject leverage, awesome!
Woken up at midnight by a deadly call, the voice of my buddy in Shenzhen came through the screen, sounding desperate:
"Buddy, help! I opened a 10x long position with 10,000 dollars, and the market only dropped by 3 points, and my account evaporated instantly, what the hell?!"
Check his position records, buddy, he went all in with $9500, stop-loss line? Not a thing.
Too many people think that using the full margin mode means having a strong risk tolerance, but the truth is quite the opposite—if the full margin is used incorrectly, the losses can be even more severe than with the isolated margin.
**Why do 95% of people treat full positions as a life-and-death issue?**
Let's calculate with a principal of 1000 dollars:
You invest 900 bucks with 10x leverage, and if the coin price moves against you by 5%, you die right there.
But if you only invest 100 dollars at the same multiplier, the coin price would have to soar 50% in the opposite direction to get liquidated.
My buddy is a typical case—putting almost all his fortune into a one-sided market, and under 10x leverage, a slight pullback triggered liquidation.
**I rely on these three tricks, using my entire position for half a year without getting liquidated and even doubling it**
**Tip 1: Do not invest more than one-fifth of your total funds in a single transaction**
I have ten thousand dollars in hand, and I can throw in a maximum of two thousand dollars at a time.
Even if the direction is wrong and I stop loss at 10%, I would only lose 200 bucks, the principal is still there, and there are plenty of opportunities to make a comeback.
**Second Move: Lock the maximum drawdown of a single transaction within 3% of the total position**
For example, using 2000 dollars with 10x leverage, setting a stop-loss order at 1.5% in advance, if triggered, results in a loss of 300 dollars, which is exactly 3% of the entire account.
Repeated mistakes in judgment won't fundamentally harm anything.
**Third move: Do not take action in a sideways market, do not increase positions in a profitable state**
Only take certain opportunities after trend breakthroughs; no matter how tempting it is to trade in a sideways market, resist the urge.
Once the position is established, never add more; do not let emotions dictate your actions.
**The correct way to open a full position: leave it blank, rather than gamble your life**
The essence of the full position mechanism is to provide a buffer zone for fluctuations, but the core premise is to experiment with a light position and implement strict risk control.
Previously, a buddy named Yueyue was margin called. After strictly following this strategy, he rolled from $5000 to $8000 in three months.
He later told me: "I used to think that going all in was gambling with my life, but now I understand that going all in is to live more steadily."
The survival rule of the crypto market has never been about who makes the most money, but rather about who can last until the end.
Bet less on direction, manage positions more, slow is fast. $ETH