Total Liquidation of Contracts? A 10-Year Trader Unveils the Truth: 90% of People Fall into These 3 Traps!
Hey everyone! Do you often doubt life due to total liquidation in contracts? Don’t blame it on luck! As a former institutional trader, I've seen too many people play contracts with a 'gambler's mindset.' Today, I’ll share my top risk management principles. After reading this, you’ll at least save 6 figures in losses💰!
🌟 3 Disruptive Truths That 99% of People Don’t Know!
1️⃣ Leverage is not the monster; position size is the real killer!
Using 100x leverage with 1% position size has lower risk than full spot trading! My student uses 20x leverage for ETH, investing only 2% of the principal each time with 3 years of zero liquidation records✨
Remember this formula: Real Risk = Leverage × Position Ratio, stop mindlessly gambling!
2️⃣ Not cutting losses is the real loss; it’s the lifeline of your account!
2024 March 12th crash data: 78% of liquidated people were down over 5% but held on😱
Professional Rule: Single Loss ≤ 2% of Principal, don’t let one mistake ruin your account!
3️⃣ Rolling Positions ≠ Gambling, this is how to safely compound!
My tiered position-building method: Start with 10% for trial and add 10% of profits📈
Example: With a 50k principal, the first position is 5k (10x leverage), if BTC rises from 75k to 82.5k, the position only increases by 10%, but the safety margin improves by 30%!
📊 Institutional-Level Risk Control Model, just copy this!
✅ Dynamic Position Formula (must memorize!)
Total Position ≤ (Principal × 2%) / (Stop-Loss Margin × Leverage)
For example, with a 50k principal, 2% stop-loss, and 10x leverage, the maximum position is 5,000 yuan!
✅ Three-Step Profit-Taking Method, secure your profits
① When earning 20%, take 1/3 profit → ② When earning 50%, take another 1/3 → ③ Move stop-loss with the 5-day moving average on the remainder
In the 2024 halving market, this strategy turned 50k into 1 million, with a return of over 1900%!
✅ Hedging Insurance: Buy Put Options for 1% of Principal
Tests show it can withstand 80% extreme risk, and the black swan in April 2024 saved 23% of account value!
❌ These traps will lead to liquidation, do a self-check now!
▪️ Holding a position for over 4 hours increases liquidation probability to 92%
▪️ High-frequency trading over 500 times a month loses 24% of the principal in fees
▪️ Didn’t take profits? 83% of people end up giving back all profits!
Finally, key points:
✅ Single Loss ≤ 2% ✅ Annual Trades ≤ 20
✅ Profit-Loss Ratio ≥ 3:1 ✅ 70% of the time stay in cash for opportunities
The market is a probability game; with 2% risk, bet on the trend, and profits will naturally come to you~
