Just stepping into the crypto world, I, like countless newcomers, fell into the trap of 'indicator superstition.' In front of the screen late at night, the candlestick chart was filled with lines - trend lines crisscrossing, Fibonacci retracement lines overlapping layer upon layer.
But reality gave me the heaviest slap in the face, until one day, when I watched the balance of my fifth account go to zero, and the 'liquidation alert' on the screen stung my eyes, I suddenly awakened: I had been using the wrong trading method from the very beginning.
1. Why do most people get liquidated?
Not because they are not smart enough, but because they are always doing these three things:
Frequent trading - always trying to catch every fluctuation, resulting in profits being eaten away by fees and slippage. Emotional averaging down - unwilling to accept losses, frantically adding to positions, ultimately leading to liquidation. Not setting stop-loss - always fantasizing that the market will come back, resulting in increasing losses.
I used to be like this too, until I completely changed my strategy.
2. My trading turning point: only take 'high probability opportunities'
I set three strict rules for myself:
Only trade at key positions - no guessing the top or bottom, only do breakouts or pullbacks after confirming the trend. Add to positions only with floating profits - do not average down on losses, only let profits run. Always set stop-loss in advance - single trade losses should not exceed 2% of the principal.
It sounds simple, but it's difficult to execute. Because the market will constantly tempt you to break the rules.
3. The key from 5000U to 100,000U:
I no longer pursue 'making money every day,' but instead wait for true high-probability opportunities.
80% of the time, I stay in cash, only observing the market. 20% of the time, I take action, only entering when the clearest signals appear. After making a profit, protect the principal, and never let greed cause profits to evaporate.
In this way, my account began to grow steadily.
4. Trading is not gambling, but a probability game
Many people treat contracts as 'betting high or low,' but real traders understand:
The market does not give you opportunities every day; learning to wait is the highest level of strategy. Losses are part of trading; the key is how to control them. The power of compounding - small profits + small losses = long-term profitability.
If you are still struggling in the liquidation cycle, try this change:
Reduce trading frequency - strictly implement stop-loss - do not let small losses turn into big losses. Let profits run - when profitable, do not rush to exit; the market rewards those who are patient.