Going all in is not about gambling with your life, but about gambling with your emotions—betting against the market and against yourself, and in the end, it's always yourself who loses.
At two in the morning, my phone suddenly vibrated wildly. Upon answering, I heard a crying shout from Xiao Chen in Guangzhou: 'Sister, I've lost 18,000U! Full position 8x ETH long, just dropped 5 points, and my account was wiped out...'
I asked him to send me the trading screenshot, and I immediately saw that familiar mistake—96% of the funds heavily invested without even setting a stop loss.
This scene instantly took me back seven years: at that time, I was holding 9000U in the entire position, following the trend of altcoins, thinking 'the fuller the position, the more profit', but I ended up losing to just 500U in half a day, almost completely withdrawing from the crypto world.
The key to a total liquidation: it's not leverage, it's position weight.
Many people get it wrong; total position trading seems to invest all funds, but in reality, the core risk lies in position management, not the size of leverage.
I calculated an account: with 1300U, if I use 1200U to open 8x leverage, a 5% reverse fluctuation will lead to liquidation; but with only 234U at 8x leverage, even a 50% fluctuation keeps the principal stable. Xiao Chen bet nearly 90% of his funds, and 8x leverage amplified the risk; a 5-point pullback was enough to leave him with nothing.
The most common pitfall for newbies in the crypto space is the impulsive all-in bet, concentrating risk on a single asset. Data shows that such operations can have a maximum drawdown of -54%, much higher than a phased building strategy.
Three 'no total liquidation' iron rules that kept me from liquidation for five years.
After that heavy loss, I spent five months reviewing and stepping into pitfalls before summarizing 3 iron rules.
1. Each trade should not exceed 18% of total capital.
For example, with a 10,000U account, the maximum investment at one time is 1800U. This way, even with a 10% stop-loss, the loss is only 180U, which does not hurt the foundation. This aligns with the principle followed by successful traders of 'not exceeding 20% of total funds for a single trade.'
2. Single loss must not exceed 2% of total position.
1800U opening 8x leverage, set a stop-loss line at 1.4%, losing 50.4U just fits within the 2% risk line. The risk is completely controllable. This point is very important because setting a clear stop-loss can help traders avoid catastrophic losses.
3. Be resolute in not holding positions during unclear markets.
Entering the market without seeing the trend is no different from crossing the street with your eyes closed. In my early years, I suffered a loss of 3800U by going all-in during a sideways market. Now I only trade during trend breakthroughs; no matter how tempting a sideways market is, I remain on the sidelines.
The transition from monthly liquidation to stable profits.
A fan used to have monthly liquidations, but after following these 3 rules, he increased from 4800U to 8000U in three months.
He said, 'I used to think total position was gambling with my life, but now I understand that total position is for stability.'
Surviving in the crypto circle is not about who makes money faster, but about who lives longer. Xiao Chen was silent for a long time and finally sent a message saying, 'Thank you, sister.' I knew he understood—I wish someone had awakened me like this back then, so I wouldn't have lost so badly.
Total position trading itself is just a tool, but the results of using the tool completely depend on the user's risk awareness and discipline.
In this market, bet less on direction, control positions more; slow is fast. By adhering to the rules, you can complete the marathon in the crypto space, instead of becoming just another fleeting shooting star.
I used to think that high returns must be accompanied by high risks, but now I understand that true wisdom lies in risk control—this is the only way to survive long-term in the cryptocurrency space.
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