Why do you always get liquidated when trading contracts?
The root cause is here!
Three major trading truths (90% of people misunderstand)
1️⃣ Leverage ≠ Risk, position size is the killer
100x leverage + 1% position ≈ 1% risk in spot trading
Real case: Student with 20x leverage + 2% position, zero liquidations in three years
Risk formula: Actual risk = Leverage × Position ratio
2️⃣ Stop-loss is a lifesaving fuse
Common trait of liquidators: Losing 5% and still not stopping loss
Professional trader's iron rule: Single loss ≤ 2% of capital
Analogy: Like a circuit breaker, timely cut-off for safety
3️⃣ Rolling positions ≠ gambling, compound interest must be steady
Wrong practice: Doubling down on profits
Correct strategy:
Initial position 10%
After profit, use 10% of profits to add position
BTC 75000→82500 case: Position +10%, safety margin +30%
Institution-level risk control model (simple and replicable)
📊 Dynamic position formula
Maximum position = (Capital × 2%) ÷ (Stop-loss margin × Leverage)
👉 50,000 capital case: 10x leverage → maximum position 5,000 yuan
🎯 Three-tier take-profit method
Take profit 20% close 1/3
Take profit 50% close another 1/3
Move stop-loss on the remaining position (leave when breaking the 5-day line)
💡 2024 halving market practical: 50,000 → 1,000,000 (1900% return)
🛡️ Hedging insurance mechanism
Buy Put options with 1% of capital
Can hedge 80% of extreme risks
Protected 23% net worth during the April 2024 black swan event
The essence of trading is a mathematical problem
🧮 Profit formula:
(Win rate × Average profit) - (Loss rate × Average loss)
📌 Key parameters:
Stop-loss 1.5%
Take-profit 15%
Annualized can reach 400%+
Ultimate trading rules (four iron rules)
Single loss ≤ 2%
Annual trades ≤ 20
Win-loss ratio ≥ 3:1
70% of the time stay out waiting
💎 Final advice:
Use 2% risk to bet on trend dividends, control losses, and profits will come naturally!
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