Don't blame bad luck; it's you who haven't grasped the way! This explosion-proof guide, obtained through ten years of blood and tears, will help you re-recognize the contract game—liquidation is never a natural disaster, but a pit you dug for yourself.
Three iron rules you must understand
Leverage is not a monster; position is key
With 100x leverage, only invest 1% of your money; the risk is even lower than being fully invested in spot. An old brother played Ethereum with 20x leverage, using only 2% of the principal each time and never had a liquidation in three years. Remember: Real risk = Leverage multiple × Bet ratio.
Stop loss is not giving up, but a life-saving charm
In the crash in March 2024, 78% of those liquidated lost 5% but didn't cut losses. The rule for experts: lose at most 2% of the principal, just like a circuit breaker at home.
Rolling positions is not gambling with your life, but letting money make money
Batch building method: invest 10% for the first trial, and then use 10% of the profit to scale up. For example, with a 50,000 principal, the first order is 5,000 with 10x leverage; for every 10% earned, add 500. Bitcoin rising from 75,000 to 82,000, the safety line of the principal actually increased by 30%.
Survival tactics of professional players
Survival position formula
Maximum position = (Principal × 2%) ÷ (Stop loss range × Leverage)
For example, with a 50,000 principal, a 2% stop loss, and 10x leverage, the maximum position is 5,000.
Three-layer profit-taking method
① Take back 1/3 after earning 20% ② Take back 1/3 after earning 50% ③ Let the remaining profit fly (run if it breaks below the 5-day line)
In the 2024 Bitcoin halving market, someone turned 50,000 into a million with this tactic, multiplying it by 19 times
Insurance buying tricks
When holding positions, use 1% of the principal to buy put options; in case of a black swan event, it can save your life. During the unexpected event in April this year, this tactic helped many people reduce losses to 23% of their principal.
Lessons learned through blood and tears data
Holding on for 4 hours: liquidation probability exceeds 90%
Random trading every day: one month of 500 trades eats up 24% of the principal
Making money without stopping: 80% of people spit out the meat they have in their mouths
The mathematical truth of making money
Profit formula = (Number of wins × Average profit) - (Number of losses × Average loss)
Set a 2% stop loss and 20% take profit; as long as the win rate is 34%, you can make money. Experts run away after losing 1.5%, catching a 15% market movement, earning 4 times a year is not a dream
Five rules for survival
Single loss ≤ 2% of principal
Limit trades to ≤ 20 times a year
Profits must cover 3 times the losses
Spend 70% of the time watching the market
The market is a casino; smart people use small risks to catch big fish. Remember: control losses, and profits will come on their own. Setting up an automated trading strategy to manage impulse trading is the way to earn money in the long run.
What to do if you're stuck? When to bottom out? Still the same saying, if you're uncertain and looking for a reference? You need a strategy; I need resonance; we help each other.
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