There is a harsh saying in the trading market: "If your principal is too small, you have to go all-in with leverage." It sounds aggressive, and executing it is even more brutal. With popular coins like $FHE and $SOL, you can see countless stories like this: rushing in to double your money, only to have your account wiped out.



The reason behind this is not bad luck, but a rotten structure. Heavy positions combined with high leverage are fundamentally unsustainable. It may seem like chasing the market, but in reality, it’s self-destructive.

The real reason you lose is often not because you misjudged the direction. The more painful truth is—you simply didn’t leave any room for market fluctuations. Leverage amplifies not just gains, but every tiny price jitter.

Most of the time, the market is oscillating, not moving in a straight up or down trend, but repeatedly pulling and tugging, draining your patience and funds. Even if your overall judgment is correct, a normal retracement can trigger a stop-loss directly due to leverage effects.

The cruelest part? Many people have experienced this: the price finally reaches your target level, but your position has already been forced out during the process. Being shaken out feels even more painful than direct losses.

Frequent trading, over-leveraging, and stubbornly refusing to cut losses—this combination is a fast track to rapid liquidation. In this mode, every stop-loss eats away at your liquidity.

On the other hand, those who have survived many years in this market tend to have somewhat "stingy" strategies: small positions, strict control over single-loss amounts; rarely or never using leverage, understanding that staying alive is more important than rushing to make money; they pursue trading certainty rather than gambling on high odds.

It’s not that they don’t want to make quick money. It’s that they’ve realized a fundamental truth: the principal is the only ticket to participate in this game. Once it’s gone, no matter how many opportunities remain, they’re out.
FHE-1,61%
SOL1,43%
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Layer2Observervip
· 19h ago
Actually, the core issue is not leverage itself, but rather the lack of a scientifically designed mental accounting system. Those traders who survive are essentially using compound interest thinking to fight against gambler's psychology. To put it simply, the fatal flaw of the full-position leverage strategy is— it assumes the market will move in accordance with your timeline. But the reality is, the market simply doesn't care about your expectations. Technically speaking, any fluctuation under high leverage is non-linearly amplified, which already means you’ve lost at the mathematical level. I've seen too many cases of being wiped out. Looking at the data, the average lifespan of such accounts is basically just a few months. It's not that these people lack intelligence; it's purely that the pattern design itself is flawed.
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FloorSweepervip
· 12-26 23:47
This statement is too harsh, all lessons learned through blood.
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NotFinancialAdviservip
· 12-26 23:31
Here we go again, hearing this over and over until your ears are calloused. Really, it's always the same tune. That part about being washed out and feeling a bit painful to hear, there's no fault in it. Holding a small position to survive is indeed more profitable than getting liquidated, but who can really resist? Leverage is like poison; knowing it's toxic, yet still consuming it. If the principal is gone, the game is over—this hits too close to home.
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PanicSellervip
· 12-26 23:24
That really hits home; it's a reflection of my experience last year. Being wiped out was even more painful than a liquidation; watching the stop-loss trigger and then the price turn around and rise... Now, with a small position, life is much better. Although the returns are slow, my mindset is good, and I don't have to stare at the screen every day until I go crazy.
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