In the game arena of the cryptocurrency world, most liquidations are never due to technical failures, but rather avalanches triggered by uncontrolled positions.
Too many people fall into a fatal cognitive trap: they always think that having strong skills will guarantee victory. The cruel truth of the market is that—out of ten liquidations, nine die from position collapse, which is almost unrelated to K-line analysis ability. Even if you accurately predict the market direction, if you dare to go all in, a slight reverse fluctuation can instantly take you out—just like trying to catch a waterfall with a glass, no matter how precise the judgment is, it cannot withstand the weight of greed.
Newcomers often ask, 'Can I go all in on this wave?', which is not trading at all, but gambling their entire fortune on the randomly fluctuating K-line. How many people are trapped in the vicious cycle of 'greedily increasing positions on winning trades, stubbornly holding on to losing ones'? When making a profit, they behave like gamblers pressing the accelerator, and when losing, they turn into losers unwilling to exit, with the countdown to account zero quietly starting.
I once bet half my position on a so-called 'inevitable market', and as a result, a big bearish candle came down, instantly evaporating three-quarters of my funds. As I stared at the shrinking numbers on the screen, my fingertips trembled—this was not just the disappearance of numbers, but the cruel slap of the 'technical omnipotence theory'. It was only when the pain reached my bones that I understood: position management is the oxygen mask in the market, while mindset control is the key to opening the door to profit.
Now, I strictly adhere to three survival rules:
Light position trial trading: each trade should not exceed 10%-15% of total capital, and even if it goes wrong, it won’t hurt too much. After making a profit, gradually increase positions like climbing stairs, allowing profits to grow slowly with the market, instead of rushing to the top in one go.
Stop-loss must be set: if the direction turns, cut immediately. This is not admitting defeat, but rather putting a safety rope on the account. The market's waves are merciless; those who refuse to let go will eventually be pulled into the deep sea.
Diversified trading: enter and exit in batches, so the fluctuations of each position won't disturb rationality. Avoid the drastic ups and downs of a single position disrupting the rhythm; trading can only be steady like a pendulum.
In the trading arena, it’s not about who profits quickly, but who can endure until the opportunity knocks. Those who find position control troublesome now will surely regret it on the night of liquidation in the future; today’s lazy hands that refuse to follow the rules will eventually pay a multiplied price for their recklessness. Will you be cannon fodder in the midst of K-line's swordplay, or will you preserve your capital amidst fluctuations and wait for compound interest?
The answer lies in your position every time you place an order.
