The harsh truth about liquidation in the crypto world: it's not leverage that harms you, it's your lack of understanding of full positions!
Last night around one in the morning,
a brother from Guangzhou panicked and voiced to me:
"Brother Lu, I had 10,000 U in my account, opened a full position with 10x leverage, and after a 3% drop, it was all gone!"
I looked at the trading record—9,500 U entered fully without setting a stop loss.
A typical case.
It's not the market that harmed him, but the heavy position.
A full position is the sharpest knife.
Used well, it doubles;
used poorly, both principal and profit are gone.
Let me give you an example:
With a 1,000 U account, using 900 U to open 10x, a 5% reverse leads to liquidation;
but using only 100 U to open 10x, it would take a 50% reverse to liquidate.
So it's not that leverage is high, but that the position is too greedy.
I have summarized three iron rules for "not getting liquidated with a full position" 👇
① Use only 20% of total capital for each trade
With a 10,000 U account, invest only 2,000 U at a time,
even with a 10% stop loss, you only lose 200 U, not hurting the principal.
② Single loss should not exceed 3%
Opening 10x with 2,000 U, set a 1.5% stop loss in advance,
losing 300 U is exactly 3% of total capital, can lose and still survive.
③ Don't trade during volatility, don't add positions in profit, only trade trends.
Before, there was a fan who almost got liquidated every month.
Later, he followed my method and increased from 5,000 U to 8,000 U in three months.
