For beginners unfamiliar with the market, contracts can be scarier than gambling. With a phone, you can play 24 hours a day, 365 days a year, at any time and place. Is 20x leverage exciting enough? If not, there's also 50x, 100x leverage, and desires are infinitely amplified.
Do you know the thrill of using a few thousand USDT as margin to open 100x leverage? It’s no less thrilling than gambling; a few minutes of volatility could equal many people's monthly salary. Since experiencing this feeling, it's hard to react to stimuli in the world; I feel numb.
Have you ever executed a trade? That fleeting joy and luck you feel can be intoxicating. But with all the precise stop losses and liquidations, those who have played long enough must have experienced it. At this point, you will fall into endless regret and self-blame, 'If only I had known...' Ah, how I wish I could go back.
In the short-term ecosystem, there is an inherent gap between professionals and amateurs in terms of prediction. However, the true gap lies in the fact that professionals are good at being wrong yet doing right, able to correct their erroneous predictions in time; even if they don't get it right, they can still win.
Amateur players are good at seeing correctly but making mistakes. Even if they occasionally get it right, it's fleeting. Understanding does not equate to trading patterns. The most feared is being half-informed; they can truly understand many things and many patterns. For him—
The colorful market is full of opportunities. This is truly terrifying.
If you've blown your account this round, don't panic; don't immerse yourself in pain. Think about whether it's a market issue or your own issue. I dare bet that 90% of it is you being unable to control your desires and impulses, which is a common problem among 'gamblers' in the crypto world. Recognize correctly: it's not trading that ruined you; it's your gambler's mentality that led you down this trading path.
1. Ask yourself first: Are you really a trader or just a gambler?
A trader is disciplined, has a plan, and is responsible for their actions; a gambler is emotional, betting everything on 'luck.' Honestly, during my first years in the crypto world, I was a gambler. Over-leveraging without considering the market, reckless all-in bets—it was all gambling. It felt great when I was winning, but when losing, I blamed the market for being unreasonable. The truth is, the market wasn't wrong; I deserved to be liquidated.
2. Gambling addiction is the biggest poison in trading.
When gambling addiction takes hold, you completely lose your rationality. You become greedily bullish in a bull market and stubbornly hold in a bear market, always thinking of doubling down. But the market never accommodates gamblers. In fact, it's not that we can't admit we have a gambling addiction; it's that most people refuse to change for the sake of pride. Brother, if you don't change this habit, no matter how much you earn, you'll eventually lose it all.
3. How to properly become a true trader?
• Learn to control your emotions: Trading should never be driven by emotions. Don't let greed and fear lead you; make a plan and stick to it. Don't get overly excited when prices rise or too confused when they fall; following the plan is key.
• Test patience with small positions: Never go all-in at the slightest provocation. A true trader knows how to break down every trade into smaller parts; a good trader isn't gambling on probabilities but managing risks.
• Learn to take profits and cut losses: One of the most terrifying aspects of human nature is being insatiable. When profits are made, you want more; when losses occur, you refuse to cut your losses until liquidation comes. These can all be avoided by strict profit-taking and loss-cutting rules.
• Review regularly: Smiling when you profit and cursing the market when you lose is a gambler's mindset. A real trader will review their trades after each operation, identify their mistakes, and improve next time.
4. The only outcome for a gambler is to return to zero.
If you've blown your account this round, don't panic; don't immerse yourself in pain. Think about whether it's a market issue or your own issue. I dare bet that 90% of it is you being unable to control your desires and impulses, which is a common problem among 'gamblers' in the crypto world. Recognize correctly: it's not trading that ruined you; it's your gambler's mentality that led you down this trading path.
I. The Essence of Liquidation: Collapse of Technical Systems vs. Emotional Bare Running
90% of liquidations are not due to market misjudgment but are an inevitable result of 'no technical closed loop.' When you place orders based on gut feelings while looking at candlestick charts, you've become a gambler—their decision-making chain is 'Market → Emotion → Action,' while true traders follow 'Data → Model → Execution.'
A brutal case of technological lag: During the 18% crash of ETH in April 2025, a retail investor manually added to their position three times because they 'felt it was bottoming out,' ultimately leading to liquidation; meanwhile, a quantitative account triggered a long position through 'RSI<20 + MACD Golden Cross' dual indicators, with a 5% dynamic stop loss not only avoiding liquidation but also capturing a 7% rebound. The core difference between the two is: the former made decisions based on adrenaline, while the latter relied on parameters backed by 100,000 backtests.
II. Technical Antidote for Gambling Addiction: Use Algorithms to Cut Emotional Loops
The essence of gambling addiction is the 'loss aversion spiral in behavioral finance,' but technical tools can create a physical barrier:
ATR Dynamic Positioning System: When Bitcoin volatility (ATR) exceeds 6%, automatically reduce position from 5% to 2% (can be set in OKX leverage accounts). Backtests in 2025 show this strategy can reduce irrational over-leveraging by 42%.
Programmatic Stop Loss Plugin: Embed a 'MA5 Break + Volume Shrink' dual-condition stop loss script in TradingView, which will freeze the account for 1 hour upon triggering, blocking the gambler's behavior of 'stubbornly holding and increasing positions.'
Risk Exposure Dashboard: Use Python to scrape real-time position data; when a single cryptocurrency exceeds 30% of total exposure, a pop-up warning appears. A community's test showed this tool reduced the liquidation rate by 67%.
III. Technical Infrastructure for Traders: 4 Replicable Quantitative Modules
Position Calculator (with formula)
Using a variant of the Kelly formula: f = (Win Rate × Profit Ratio - Loss Rate) / Profit Ratio
Example: When Win Rate is 50% and Profit/Loss Ratio is 2:1, single position = (0.5×2 - 0.5)/2=25%, coupled with OKX's 'Isolated Margin Mode' for precise risk control.
Dynamic Stop Loss Parameter Table
Quantitative Review Template
Use Excel to record each trade's 'Entry Candlestick Pattern + Indicator Values + Stop Loss Trigger Points,' focusing on calculating:
Strategy Sharpe Ratio (Target > 1.5)
Maximum Consecutive Losses (Warning Line < 5 times)
Profit and Loss Ratio Distribution (Quality Strategy > 1.8)
Anti-Human Execution Tool
Recommended OKX 'Conditional Order Combination':
Take Profit: Automatically reduce position by 30% when breaking previous highs
Break-even: Partial liquidation triggered by a 2% pullback
Extreme Market Conditions: Take full profit when price deviates from MA20 by more than 8%
IV. Technical Commandments: Avoid 3 Fatal Parameter Misconceptions
Leverage ≠ Technical Ability: Backtests show that 5x leverage with a 1% stop loss has a 23 times higher survival probability than 20x leverage with a 0.5% stop loss.
More indicators ≠ higher win rate: Combinations of more than 4 indicators can lead to overfitting; the best configuration is '1 Trend Indicator + 1 Momentum Indicator'
Backtesting Period < 1 Year = Fooling Around: Must cover at least one bull-bear transition (e.g., 2022-2025 data), otherwise, you will miss out on black swan scenarios.
End-of-article Benefit: Reply 'Technical Package' to receive 3 tools
Python Backtesting Script (Including Binance API)
Dynamic Stop Loss Parameter Calculator (Excel Version)
2025 Mainstream Cryptocurrency Volatility Data Table
The ultimate technique in trading is to let the system counteract human nature for you. When each of your operations can be broken down into quantifiable parameters, liquidation has long been written into an impossible algorithm.
If you're also a tech enthusiast feeling helpless and confused in trading, and want to learn more about crypto-related knowledge and first-hand cutting-edge information, click on my profile and follow me, so you won't get lost! @加密大师兄888 Understanding the market clearly gives you confidence in your operations. Steady profits are far more realistic than fantasizing about getting rich quickly.
