"In the coin circle, one day is like a year in the human world. Did your position disappear overnight? It's not that the market is too crazy, it's that your risk management pants have been stripped off!"
Master's interpretation:
1. Liquidated (money is gone, heart is cold)
What to do right now?
Don’t you dare open new positions with shaky hands! First check the exchange's messages/APP, see which coin it is, at what time it exploded, and how much is left. Take a deep breath, accept reality—money can’t come back, but you need to stay alert!
Why are you the one getting liquidated? (Three heart-wrenching questions)
Case: Last night ETH surged and you went all in on a 50x long position, but the SEC tweeted in the middle of the night, and a spike took it all away—too high leverage is seeking death!
Case: Full position in altcoin contracts hoping to 'turn a bicycle into a motorcycle', but the project party ran away to zero—too heavy a position + junk assets = suicide!
Didn’t set a stop-loss? Or is the stop-loss price too close to the opening price (for example, opening long at 3000, stop-loss at 2999)? A spike is the cure for disobedience!
Master's viewpoint:
Liquidation is not a market problem; it’s too much gambling! High leverage overnight is like borrowing high-interest loans to gamble your life; winning ten times is not enough to cover one loss. Withdraw the remaining money first, close the contract, calm down for a month, and review while writing a blood letter: "If I go full margin and high leverage again, I’m a dog!"
2. Locking up/Trapped (money is stuck, heart is blocked)
Spot holdings turned into shareholders:
Case: Last year you called a certain AI coin at $1.5 heavy position, now it's $0.3, should you sell and feel the pain, or not sell and play dead—first ask yourself: Is this project still alive? Is the team still working? Or has it become a zombie coin?
My risky operation suggestions (cautiously reference):
Junk coins: Take advantage of the rebound to cut losses! Feed the dogs, keep money to seize the next opportunity.
Optimistic but deeply trapped: Dollar-cost averaging to reduce costs (for example, add a little every 10% drop), but don’t go All In! Keep 50% of your bullets to prevent going to zero!
Contract about to explode but hasn’t yet (high risk!):
Immediately check the liquidation price! For example, if your BTC long position was opened at 60,000, with a margin rate of 10%, and the price drops another 2%, it will liquidate—at this point, either:
Top up margin (be cautious!): Unless you are sure a rebound is coming immediately, and the money you add is spare cash.
Cut losses and reduce positions: Close half, although painful, it can save your life; losing a finger is better than losing your head!
My blood and tears viewpoint:
"Locking positions for hedging" is the biggest trap for beginners! Opening both long and short to hedge losses? Just the transaction fees can drain you dry, and when unlocking, you’re hit from both sides! It’s better to cut losses directly and admit that this position was wrong!
3. Trapped (floating loss, but can still be saved)
Must do three things:
1. Immediately set a stop-loss! Floating loss of 10% and not cutting losses, waiting for it to become 50%?
2. Question your original intention: Why did you buy in the first place? Has the logic changed? (For example, investing in L2 because of the Cancun upgrade, and after the upgrade, all the good news is out, so hurry and run!)
3. Reduce leverage (contract): 50 times floating loss? First reduce to 10 times, losing less is winning!
My core attitude:
"Holding a position" is not perseverance, it’s foolishness! The coin circle does not wait for "unwinding," the opportunity cost is extremely high! Cutting losses to seize new hotspots may allow for recovery sooner. (Reference: Last year, the grass on the grave of those who stubbornly held LUNA is already two meters tall)