Blowing up is a path that most newcomers must go through; learn from the lessons and there will be a day to rise again.

A week ago, a fan with the ID @CoinSeaSinking sent a desperate private message late at night: "Sister Xiaobai, I have been liquidated 6 times in the past three months, with nearly all of my 52,000U capital gone... now my account only has 482U, is there still a chance for a comeback?" This heartfelt confession unveils the common scars of countless traders. By reviewing his trading log, I identified three major fatal traps — they are not only technical mistakes but also concentrated explosions of human weaknesses.
One, multiple liquidations: The red alert of a collapsed risk management system
Continuous liquidations are by no means accidental:
1. The vicious cycle of uncontrolled leverage
Opening a long position of 10,000U on ETH without setting a stop-loss during a 20% pullback, leading to forced liquidation; to quickly recover, the second trade directly opened a 50x leverage, falling into the deadlock of "loss → add leverage → re-loss". Data shows that 83% of consecutive liquidations began with the lack of a stop-loss on the first order (BitMEX 2024 Risk Management White Paper).