Last night, someone turned a $5,000 principal into an astonishing $200,000 through a snowball effect! But who would have thought that his account would be completely zeroed out by this morning, turning everything into a mirage? Such dramatic rise and fall happens every day on the cruel stage of the cryptocurrency world.
Have you ever wondered why 99.9% of contract players ultimately cannot escape the fate of liquidation? The answer lies in the three fatal mistakes they often make.
I once saw a gambler who was extremely reckless; he boldly used 125x leverage with all his funds and, in just 7 days, successfully earned an eight-figure fortune. However, the unpredictability of fate always catches people off guard. On the morning of the 8th day, a needle-like market fluctuation instantly caused him to be liquidated, and all his wealth vanished in an instant.
Today, I want to share a secret that is more exhilarating than ‘club models’ – how to use mathematical formulas to defeat the ruthless ‘harvesters’ of the exchanges.
Many people mistakenly believe that higher leverage is better. While they boast about the excitement of 100x leverage, true professional players are well aware of the dangers. They quietly apply this ‘Death Ladder Principle’:
- Principal under $10,000, capped at 5x leverage; this is a rational line of defense.
- Principal under $50,000; 4x leverage is the ticket to profit heaven.
- Principal over $100,000? Congratulations, you have earned the ‘1x leverage privilege’; this is the glory of the prudent.
Once there was a master who turned $1,000 into $500,000, but in the end, he cried as he canceled his account. Why? Because he ignored this crucial ‘withdrawal iron rule’: when profits exceed 200% of the principal, you must withdraw the principal immediately! This is not an optional suggestion; it is the key to survival! After withdrawing the principal, you can play with the remaining profits however you like; you will gain the ‘God’s perspective’ – because that is all money earned from the exchange, and without the pressure of the principal, your mindset will naturally be more relaxed.
"Candlestick charts can lie, but mathematics cannot." I have survived in the cryptocurrency world relying on this ‘2.5 times stop-loss rule’:
- The amount lost in each stop-loss must not exceed 2% of the principal; strictly control risk.
- Profits must cover 2.5 times the losses to ensure that returns exceed risks.
- Monthly trading frequency should not exceed 15 times to avoid unnecessary risks from frequent trading.
Do you want to know how to safely grow $1,000 to $10,000? Remember, when the temptation of ‘club models’ turns into a nightmare, real players are using money earned from exchanges to make a glamorous turn in life, even buying the villa of their dreams!
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