At four o'clock in the morning on January 1, 2024, my eyes fixed on the screen suddenly went blank—TRB shot up like a rocket, instantly rising from 240 to around 700. The moment the words "liquidation" popped up on the screen, I knew I was completely finished.

Looking back now, that disaster had long been foreshadowed. Starting with a short position at $45, watching the price rise all the way up, I stubbornly refused to believe it, clinging to the obsession that "it will eventually drop," holding on from 45 to 100, then to 200, and finally over 600. During this time, when I faced liquidation, I added margin; when the margin wasn’t enough, I borrowed money to supplement it, robbing Peter to pay Paul, like a gambler constantly reopening positions, just hoping for a pullback to turn things around.

But the market never feels sorry for gamblers. When the last margin was wiped out and the debt amount was fixed at 850,000, I slumped in my chair, watching the sky outside slowly brighten, feeling for the first time that the cryptocurrency circle is scarier than anything else—it can swallow all your savings in just a few hours and even drag you into the abyss of debt. That period was the darkest moment of my life; I didn't dare to answer family calls or go out to see friends.

Feeling the pain: engraving the lessons of liquidation into my bones

After being in a slump for half a month, I locked myself in a room, combed through 8 years of trading logs, and realized that the liquidation was not due to 'bad luck', but rather I made all the possible mistakes:

1. Stubbornly holding against the trend: clearly, the daily level has formed a clear upward trend, yet I stubbornly shorted with the subjective judgment that 'high positions must fall', throwing technical analysis out of the window;

2. Not setting stop losses: I started shorting at 45 without setting stop losses, always thinking 'a pullback will break even', resulting in small losses turning into fatal injuries;

3. Emotional addition of funds: after the liquidation, I lost my rationality, borrowed money to add to my position, and frequently opened orders, completely violating the capital management principles I summarized over the years.

After understanding these, I deleted all the 'market alert groups' from my phone, picked up the most basic technical analysis books again, starting from moving averages and trading volume, merging years of experience and painful lessons to refine a trading system of 'survival before profit'.

Turning the tide against the wind: using 'simple methods' to rebuild the account

I borrowed 5000U from a friend as starting capital and set three strict rules for myself:

  1. Strict stop loss without holding positions: every time I open an order, I must set a stop loss, with the stop loss not exceeding 2% of the principal, cut losses when the point is reached, and never hesitate. Even if I later encounter a similar rapid rise like TRB, I can exit in time, losing at most a small amount of money;

  2. Only look for opportunities within trends: abandon 'chasing tops and escaping bottoms', only use EMA21 and EMA55 to judge trends, go long only on golden crosses and short only on death crosses, directly stay out of unclear markets. In the rising trend of ETH in March 2024, I relied on the strategy of 'going long on the pullback to the middle track' and made three times the profit in a single month;

  3. Take profits in batches: every time I earn 20%, I withdraw 50% of the profit while still in debt, and use the remaining 50% to roll over. Do not be greedy for 'recovering all at once', just aim for steady progress, watching the debt amount decrease every month, my mindset also becomes more stable.

Thus, from 5000U to 20,000U, then to 100,000U... by the end of 2024, I not only paid off the 850,000 debt but also restored my account back to 600,000U. This process had no miracles, all was achieved by 'not making mistakes and steadily profiting' bit by bit.

The cryptocurrency circle has never been a 'gambling casino', but rather a battlefield that tests cognition and discipline. I exchanged 850,000 in debt for a lesson: those who can survive in this market are never the ones who are best at 'making quick money', but those who understand 'risk control' the most.

If you have also experienced the pain of liquidation, don't lose heart—turn the lessons into weapons, refine the strategy again, and strictly enforce discipline; the market will always give you a chance to turn things around. But remember: never gamble with your life, preserving the principal is the premise of all profits.

I am Sister Wei, nice to meet you all. Sister Wei focuses on Ethereum contract spot ambush, and the team still has spots available, bringing you to become a big player and also a winner. #币安HODLer空投XPL $ETH