#美联储联邦公开市场委员会决议 A Trader’s Reflection on Liquidation

Before I ever got liquidated

"Just follow the trend."

That was my mindset back then. 30% of my capital with 100x leverage, never heard of stop-loss. What’s stop-loss? It’s the price that causes an instant liquidation. As for taking profit, doubling your money wasn’t even a concern.

Once the market moved favorably, I felt chosen by the heavens. Click a few keys, and the money should just flow into my pocket. Back then, I truly believed I had found a shortcut to quick financial freedom.

One night in April of a certain year, a news about tariffs hit the market. The chart plummeted straight down. Within two hours, my 15,000 yuan was wiped out. My friends in the group suffered even worse—190,000 yuan gone in an instant. The numbers on the screen disappeared so quietly, as if nothing had happened. But at that moment, my heart was hit hard.

That’s when I realized a cruel truth — liquidation isn’t a story, it won’t give you a heads-up when it’s coming.

After Liquidation

I started studying like crazy. Joined various trading groups, researched candlestick charts, technical indicators, golden cross and death cross, Elliott Wave theory, pattern structures—reviewing and backtesting every night, desperately trying to find the "password" for stable profits.

After three or four months, I finally understood clearly. There’s no holy grail in this market. All technical analysis, bluntly speaking, is just about increasing your chances and positioning for "correct guesses." What I learned wasn’t a secret to getting rich overnight, but two very important words: stay alive.

Now, I only stick to a few bottom lines:

1. Admit loss immediately when you’re losing

Don’t fall in love with the market, and don’t harbor resentment over losses. Holding on destroys not only your account balance but also your life and mindset. Sometimes, taking a loss in time is the best way to protect yourself.

2. Always set a stop-loss on every position

It’s not optional; it’s the fuse of your account.

3. Lock your stop-loss at cost price as soon as there’s floating profit

Better to be wrong in the end than risking your principal.

4. Only trade trends you understand

Market patterns you don’t understand are traps; only the understandable ones are true opportunities.

5. Never leverage more than 10 times

High leverage doesn’t give you wings, it amplifies your fear and greed.

Final Ramblings

Crypto trading isn’t gambling, but if you approach it with a gambler’s mindset, the market will harvest you like a leek. Leverage doesn’t amplify your wisdom; it magnifies your greed and fear.

Maybe there’s no perfect holy grail of trading. But the rules that keep you alive in this ruthless market are surely the most honest and humanly against nature lessons learned through real money and bloodshed.

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