# The True Risk of Leverage Trading Lies Not in the Multiplier, but in Position Size

Many traders blame liquidation on excessive leverage, but the key factor is the relative size of each individual position. For example, with a 1000U account, using 900U to open a 10x leverage position, a mere 5-point adverse move can trigger liquidation; whereas, with the same 10x leverage, investing only 100U, it takes a 50-point move against to be liquidated. The difference in risk buffer is significant.

A common tragedy in the market is putting all capital into a single position, resulting in paying the price during a single correction. In contrast, maintaining rational position management and discipline allows for stable growth even in volatile markets. Achieving zero liquidation over six months and doubling returns depends on following these three principles:

**First, control the size of each position** — no single position should exceed 20% of total funds. For a 10,000U account, the maximum single position is 2,000U. Even with a 10-point stop loss, the loss is only 200U, which is within a controllable range.

**Second, set an upper limit for accumulated losses** — total daily loss should not exceed 3% of the account funds. Predefine stop-loss levels so that even consecutive misjudgments won't damage the core capital.

**Third, manage trading rhythm** — pause opening new positions during consolidation periods, avoid adding to winning trades, strictly follow trend breakouts for entries, and prevent emotional overtrading.

Based on long-term market observation, there are nine valuable rules, including recognizing signs of market stabilization during major declines, adjusting timeframes based on moving average systems, positioning before the main upward wave rather than chasing highs at the top, closing positions if no progress is made in three days, and lightly participating in rebounds after oversold conditions. Additionally, prioritize leading coins, establish a trend-first mindset, wait with an empty position rather than operate blindly, and differentiate luck from skill through review—these are fundamental to building a stable trading system.

Consistent profits in the market come from a combination of fault-tolerance mechanisms and disciplined execution, not frequent trading or simply chasing high leverage. The same logic applies to trading assets like $ZEC. Cases where accounts grow from 5000U to 8000U through systematic methods reflect the practical effectiveness of these strategies. Preserving capital is always more valuable than blindly pursuing gains.