The Leverage Survival Rule of Big G: Don't Let Greed Eat Your Principal
Brothers, playing with leverage is like borrowing at high interest to gamble your life. I have seen too many people fall from heaven to hell overnight. Last year in Fuzhou, there was a guy who used a 10x leverage with a principal of 100,000 to gamble on altcoins, making 8 million in three days. On the fourth day, the market crashed directly to zero — this is not a story, it's real liquidation data from the exchange's backend.
Spot trading is like farming, leverage is like gambling on stones
In spot trading, even if it drops 90%, you can still wait for the bull market, just like in 2018 when Bitcoin dropped from 20,000 to 3,000; holding for five years still allows for break-even. But in the leveraged world, a 5% fluctuation can be fatal. With 3x leverage, encountering a 20% reverse fluctuation can wipe you out directly; with 10x leverage, a 10% drop gets you out, leaving no opportunity to average down. Exchange data shows that 83% of leveraged traders can't last three years.
My Snowball Strategy
Testing with 100 yuan: Use pocket money to feel the market temperature, trading no more than 2% of the principal daily (losing doesn't hurt too much)
Practicing with 1,000 yuan: Only use 10% of the profits to play with 3x leverage after real profits exceed 50% (earnings are bonuses; losses won't hurt)
Setting up with 10,000 yuan: Bitcoin as the foundation + stablecoins as ballast + potential coins for offense, a three-legged approach is the most stable
Establishing with 100,000 yuan: At this point, an annualized 20% yields 20,000 in profit; the power of compounding is more enduring than gambling.
Five Life-Saving Red Lines
Uninstall the leverage function, just like locking your bank card with a gambling app
Every time you make 10%, move the stop-loss line up; profits realized are called money
Daily trading should not exceed 3 times; high-frequency operations can confuse your mindset
If losses exceed 5%, immediately close the software, go to the riverside and smoke a cigarette to calm down
Study one on-chain data indicator daily, review three classic liquidation cases weekly
A top quantitative team in Zhejiang told me that they test traders for 100 days without leverage to assess their discipline. This echoes the saying in 'The Art of War': 'First seek not to lose, and then seek to win' — earning 25% annually compounds to 9 times in ten years and 851 times in twenty years; why risk your life?
Finally, I’ll leave you with a saying: I have seen liquidation messages at 4 a.m. more than I have seen the sun at 4 a.m. Wealth is a marathon; don't let leverage pierce the soles of your feet.
If you currently feel helpless and confused about trading, and want to learn more about the crypto world and cutting-edge information, click on my avatar to follow my introduction; let's not get lost in this bull market!
