Still don't know where you went wrong with the liquidation? You're about to pay the most expensive tuition.
Too many people play contracts, making a ridiculous mistake from the very first step: going all in with high leverage as soon as they open a position? If not you, who will get liquidated?
Regardless of the volatility of the currency, relying solely on a one-size-fits-all multiplier? Are you a market god? True experts never blindly trust a 'fixed multiplier'.
They only look at three things: volatility, market cycle, and rhythm strength.
Then, the leverage for each trade is different.
The fundamental reason for liquidation has never been the wrong market direction, but rather that you used the wrong leverage!
A simple example:
If the coin price is 100U and you open 10x leverage, the liquidation space is only 10U.
Open 20x? A fluctuation of 5U directly leads to liquidation.
Open 2x? There's still 50U of space to operate; the risk is instantly reduced by one magnitude.
The larger the multiplier, the faster the liquidation; the smaller the multiplier, the stronger the fault tolerance.
So, before actually opening a position, ask yourself one question:
"What basis do I have to open this multiplier?"
Not based on feeling, but based on analysis!
So what multiplier should you actually use?
The answer is just two words: watch the market!
The larger the trend, the longer the cycle, the smaller the leverage used.
The longer the time, the higher the uncertainty, the market may fluctuate violently and repeatedly.
Therefore, the space must be enlarged to avoid being washed out.
For example:
When looking at daily candles, use the intraday support and resistance to measure the stop-loss space; for medium-term trends, use the 5-day line and weekly candles to judge a larger volatility range;
Then, backtrack to a reasonable multiplier, rather than blindly applying a one-size-fits-all approach.
Finally, summarize three points:
Never use a fixed multiplier against the market; before each trade, always 'measure volatility - calculate the range - set the multiplier';
If you want to make money, first learn how to avoid dying.
Trading contracts is not gambling; it's a game of strategy, risk control, and rhythm. The market changes, and the multiplier must change accordingly.
If you can understand this passage, you're already a big step ahead of 80% of people!
