The Correct Approach to Avoid Liquidation in the Crypto World! Position Management Suggestions: Doing This Is More Stable!
✅ 1. Split Position Management: Avoid Putting All Eggs in One Basket
For example: You have 30,000 USDT, split it into three parts, each part 10,000 USDT.
When opening a position, only use one part, replenish on losses, and withdraw profits.
Maintain a fixed position size each time to reduce volatility risk.
✅ 2. Leverage Control: Don’t Be Too Reckless!
BTC (Bitcoin) maximum 10x leverage
Altcoins no more than 5x leverage
Limit losses to 1/3 of the position to give yourself a buffer, making it less likely to get overexcited.
✅ 3. Fixed Opening Logic: One Trade Per Market Movement
Only take one trade per market movement, avoid frequent trading.
Directly use that 1/3 position, strictly execute according to the multiplier, do not arbitrarily increase the position.
✅ 4. Gradually Increase Position After Doubling Profits
For example, from 30,000 USDT to 60,000 USDT,
In the next stage, increase each part to 20,000 USDT, still split into three parts to continue execution.
This is the **“Amplify When Winning, Protect When Losing”** approach.
✅ 5. Applicable for Small Funds Too!
Do you only have 1,000 USDT / 2,000 USDT?
Still split into three parts, small amounts help maintain discipline better.
Smaller amounts are more suitable for establishing correct trading habits.
❗ Three Iron Rules to Reduce Losses:
🚫 1. Do Not Use High Leverage!
Altcoins over 5x, Bitcoin over 10x = Gambling Behavior
Higher leverage means quicker liquidation, making recovery difficult.
🚫 2. Do Not Take Counter-Trend Positions!
Shorting while the market is rising is like driving against the wind.
Missing out is not scary, forcing it can easily lead to liquidation.
🚫 3. Do Not Trade Based on Feelings!
Don’t just guess the direction from a chart
Each trade must have clear logic + risk control plan
✅ Summary:
Fixed Position + Low Leverage + Trend Following Logic
= Live Longer + Lose Less + Steady Profits!
