On the evening of $BTC 14, I received a voice message from a friend in Shanxi, sounding particularly anxious.
He said he went all in with 10x leverage on 10,000 U and ended up losing money after a 3% pullback.
I looked at his trading records ($PTB ) and found that he had poured almost all 9,500 U into the trade without even setting a stop-loss.
Many people think going all in can withstand market fluctuations, but in reality, if not done properly, going all in can lead to quicker losses than using a staggered approach.
The key to a liquidation caused by going all in is not the leverage ratio but rather the heavy position itself.
Take a 1,000 U account as an example; if you use 900 U to open a position with 10x leverage, a market reversal of just 5% will wipe out your account.
However, if you only use 100 U to open a position with 10x leverage, it would take a 50% movement to trigger liquidation.
That friend lost everything because he had almost all his principal at stake, and after just a slight pullback, his account was wiped out.
On the other hand, I managed to use my entire account for half a year without liquidation, instead doubling it, based on three principles:
First: Never risk more than 20% of total capital in a single trade.
In a 10,000 U account, the maximum investment per trade is 2,000 U.
Even if the direction is wrong, a 10% stop-loss would only result in a maximum loss of 200 U, which doesn’t hurt the core capital and can be restarted at any time.
Second: Single trade losses must not exceed 3% of total capital.
For example, if you use 2,000 U with 10x leverage and set a stop-loss at 1.5%, a loss of 300 U is exactly 3% of total capital. Even if you make several consecutive mistakes, it won’t be fatal, allowing you to survive and regroup.
Third: Never open a position in a choppy market, and don’t add to winning positions.
Only seize opportunities that break trends; no matter how tempting sideways markets are, just observe;
After opening a position, regardless of whether the market goes up or down, never increase your position based on emotions.
Only pursue opportunities with high certainty, avoiding excessive risks.
The true purpose of going all in is to leave room for error, not to gamble.
Previously, a follower kept facing liquidations every month, but after following these three principles, he managed to grow his account from 5,000 U to 8,000 U in three months.
He said he used to think going all in was a life gamble, but now he understands that going all in is meant for greater stability.
Surviving in the crypto world isn’t about who profits the fastest, but rather who lasts the longest.
Gamble less on direction, and control your positions more; slow is fast.
Brothers, going solo will never match the guidance of a team pointing you in the right direction. If you want to succeed and turn your situation around, I am always here for you.
