The cryptocurrency circle is turbulent, and contract trading resembles a life-or-death arena. Every day, over 100,000 people fall into the bloodbath of liquidation, with daily liquidation amounts even exceeding $1 billion. Newcomers are often the first to be hit — all in, stubbornly holding, no stop-loss; stories of losing all principal in just two days are everywhere. Have you also watched helplessly as your position is wiped out by a single large bearish candle in the middle of the night? Don’t worry, today we’ll unveil the truth about liquidation and provide you with a life-saving strategy!

1. The fatal pitfalls that 90% of newcomers fall into when liquidating.

  1. High leverage: A death accelerator.
    Under 100 times leverage,1% reverse fluctuation = principal goes to zero.How many newcomers have been lured by the illusion of 'hundred times overnight', yet forgot that high leverage is a double-edged sword — manic when prices rise, piercing when they fall.

  2. 'The gambler's mindset of going all-in.'
    Have $500 in the account? Bet it all! The result is a direct forced liquidation during a spike, leaving no chance to replenish positions.The heavier the position, the lower the margin for error., this is a mathematical law.

  3. The 'hero syndrome' of failing to set stop-losses.
    'Just wait a bit; it will come back up...' This kind of lucky thinking causes losses to snowball, ultimately leading to forced liquidation by the system.Trading without stop-losses is equivalent to jumping off a cliff with your eyes closed..

  4. The vicious cycle of emotional trading
    FOMO chasing highs and panic sellingAfter incurring losses, frantically doubling down in an attempt to recover, even stubbornly holding against the trend. Once the mindset collapses, the trading will surely become chaotic.

  5. Blindly following the crowd in the plaza
    Not understanding the technology oneself, completely relying on the commands of the plaza 'gods'. As a result, becoming a target for the major players to harvest —The market specializes in treating all forms of defiance..

2. Five life-saving rules of the strategy: Surviving is winning.

'Contracts are not a casino; surviving longer is more important than making quick profits' — the blood and tears of those reborn from liquidation.

Rule 1: Keep leverage within 20 times.

Newcomers should consciously lock their leverage ratio! 10-20 times is sufficient — a 20% fluctuation will trigger liquidation, leaving a buffer for escape. Remember: low leverage is the protective shield for newcomers.

Rule 2: Stop-loss ingrained in DNA

Always set a stop-loss when opening a position. If losses exceed 2% of the principal, cut losses immediately to survive. Don’t get tangled up in 'the market turning back after hitting a loss'; staying alive is key to waiting for the next opportunity!

Rule 3: Position management is a lifeline

Do not exceed 20% of total funds in a single trade; always leave enough ammunition for replenishing positions. Diversify holdings into different cryptocurrencies to avoid losing everything if one currency crashes.

Rule 4: Refuse to be a '24-hour warrior'

Avoid staying up all night monitoring the market and frequent trading! Set trading hours (e.g., 8 PM - midnight) and turn off the device during other times to maintain your mindset. Less monitoring allows you to see the big trend more clearly.

Rule 5: Review and build a trading system.

Daily record your trading diary: Why did you open a position? Where is the stop-loss set? Is the emotion out of control? Transform lessons into algorithms and undergo a metamorphosis in three months.

Contracts are not life gambling, but rather an art of risk.

Liquidation is never just bad luck; essentially, it’s a failure in risk management. True winners in contracts engrave 'capital preservation' into every trade: low leverage acts as a shield, stop-loss serves as a knife, and position management is like a chess game.

Remember the ultimate secret of the strategy:
'Light positions→ Trial and error → Stop-loss → Compound interest'
A four-step cycle, endlessly repeated.

Survival rules in the crypto world: When most people are liquidated, those who survive are already winners. When to buy the dip? The same saying goes, when confused and helpless, comment with your profile picture. I need fans, you need references #加密立法新纪元