At two in the morning, a friend from Zhejiang kept sending voice messages, his voice trembling:
"Bro, $AT I put 10,000 U in full margin with ten times leverage, and it dropped 3% before blowing up, what's going on?"
I opened his records and saw——9,500 U fully invested, without even placing a stop-loss.
Many people think that "full margin means you can hold on," but actually, if not used properly, full margin can lead to faster losses than partial margin.
The key to a full margin blow-up is not the leverage, but the weight of the position.
Take a 1,000 U account for example:
With 900 U at ten times leverage, a 5% adverse movement goes straight to zero;
With 100 U at ten times leverage, it takes a 50% movement to blow up.
My friend put in 95% of his capital, and a slight pullback wiped him out.
These three principles have allowed me to use full margin for half a year without blowing up and even doubled my money:
Never exceed 20% of total funds in a single trade.
In a 10,000 U account, the maximum investment in one go is 2,000 U. Even if you misjudge and hit a 10% stop-loss, you only lose 200 U, which doesn't harm the foundation.
Single losses must not exceed 3% of the total margin.
For example, with 2,000 U at ten times leverage, set a 1.5% stop-loss in advance, and a loss of 300 U is exactly 3% of total funds. Even several wrong moves won't hurt the vitality.
Do not open positions during volatility, and do not add profits.
Only trade during trend breakthroughs; no matter how tempting the consolidation is, keep watching; after opening a position, never average down, avoiding emotional interference.
The true use of full margin: is to provide a buffer, not to gamble.
The original intention of full margin design is to leave room for error during volatility, but the prerequisite must be light positions for trial and strict risk control.
Previously, a fan of mine kept blowing up every month, but after following these three rules, he rolled from 5,000 U to 8,000 U in three months.
He said: "I used to think full margin was a gamble for life, now I understand, full margin is to live more steadily."
Surviving in the crypto space is not about who earns faster, but who lives longer.
Bet less on direction, control positions more, slow is fast.
Can't control positions? The guiding light is right in front of you @极速翻仓王—强哥
