Total liquidation of contracts? A 10-year trader angrily reveals the truth: 90% of people are stepping into these 3 traps!.
Dear ones! Are you doubting life because you keep getting liquidated while trading contracts? Don’t blame it on luck! As a former institutional trader, I've seen too many people play contracts with a "gambler's mindset." Today, I’ll share the ultimate risk management rules. After reading this, you can at least avoid losing six figures 💰!
🌟 3 shocking truths that 99% of people don't know!
1️⃣ Leverage is not a monster; position size is the real killer!
Using 100x leverage with a 1% position has less risk than a full spot position! My students use 20x leverage on ETH, only investing 2% of their capital each time, with a 3-year record of no liquidation ✨
Remember this formula: Real Risk = Leverage × Position Ratio. Stop mindlessly gambling!
2️⃣ Not setting a stop-loss is the real loss; it’s the life-saving fuse for your account!
2024 March 12th crash data: 78% of those who got liquidated were those who were down more than 5% and still held on 😱
Professional rule: Individual loss ≤ 2% of capital. Don’t let one mistake ruin your account!
3️⃣ Rolling positions ≠ gambling; compounding should be done this way to be safe!
My tiered position-building method: Start with 10% for testing, increase position by 10% of profit 📈
Example: With 50,000 capital, the first position is 5,000 (10x leverage). If BTC rises from 75,000 to 82,500, the position only increases by 10%, but the safety margin increases by 30%!
📊 Institutional-level risk management model, copy it directly!
✅ Dynamic position formula (must memorize!)
Total position ≤ (Capital × 2%) / (Stop-loss width × Leverage)
For example, with 50,000 capital, 2% stop-loss, and 10x leverage, the maximum position is 5,000 yuan!
✅ Three-step profit-taking method, profits can be safely secured
① Take 1/3 profit at 20% → ② Take another 1/3 at 50% → ③ Move stop-loss with the 5-day line for the remainder
In the 2024 halving market, this strategy turned 50,000 into a million, with a return rate of 1900%+!
✅ Hedging insurance: Buy Put options for 1% of capital
Tested to withstand 80% extreme risk; in April 2024, a black swan event saved 23% of account net value!
❌ Avoid these traps or you’ll definitely get liquidated; do a self-check!
▪️ Holding positions for over 4 hours increases liquidation probability to 92%
▪️ More than 500 trades a month leads to a 24% loss of capital in fees
▪️ Not taking profits? 83% of people end up giving back all their profits!
Finally, key points:
✅ Single loss ≤ 2% ✅ No more than 20 trades per year
✅ Profit-loss ratio ≥ 3:1 ✅ 70% of the time, stay out of the market waiting for opportunities
The market is a game of probabilities; use a 2% risk to bet on trends, and profits will naturally come to you～
