The true culprit of full-position liquidation is not leverage itself—it's that you didn't leave yourself room for mistakes.
Let's take $1000 as an example: • $900 with 10x leverage, just a 5% market reversal, and your account is wiped out. • Conversely, using only $100 with 10x leverage, the market would need to move 50% against you to threaten your position.
The latter's fault tolerance is far greater. After half a year of using full-position mode, I haven't been liquidated once and even doubled my funds. The secret isn't mysterious; it's these three rules:
**Rule 1: Never open a single position exceeding 20% of total funds** $10,000 account? Use only $2,000 per trade. Even with a stop-loss, you only lose 2%-4% of your total funds. It won't hurt your core capital, and you'll still have bullets for the next trade.
**Rule 2: Keep single trade losses within 3% of total funds** Set your stop-loss before opening a position. For example, with a $2,000 position, set the stop-loss at 1.5%, risking a maximum of $300—exactly 3% of your total funds. This bottom line must be maintained.
**Rule 3: Only trade in trending markets, and shut up after profits** • Avoid trading during sideways markets; wait for a clear breakout trend before acting. • After making a profit, don't "feel like it can still go up" and blindly add to your position. Use trailing stops to lock in profits, and don't let emotions amplify risks.
The correct way to use full-position trading is to leverage its flexibility to set a ceiling for each trade, not to gamble recklessly. A friend used to blow up his account every month, but after strictly following these three rules, he steadily grew his account from $2,600 to $53,000 in three months.
You can only earn consistently if you stay in the market long enough. True stability doesn't rely on luck to dodge crises—it depends on using rules to tightly lock in risk.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
20 Likes
Reward
20
8
Repost
Share
Comment
0/400
BetterLuckyThanSmart
· 01-09 03:19
It's the same old risk management rhetoric, and it's starting to make my ears callous. But to be honest, the 20% position + 3% stop-loss combination is indeed the most basic survival rule. Many people just refuse to listen and insist on going all-in, which is how they end up as retail investors...
View OriginalReply0
PortfolioAlert
· 01-07 04:35
That's really clever. The 20% position + 3% stop-loss combination is worth pondering. I feel like previous all-in moves were just brainless.
View OriginalReply0
SelfCustodyBro
· 01-07 03:50
To be honest, I've heard this logic several times, but very few people actually implement it. The key is that phrase—fault tolerance space, in simple terms, is about leaving yourself a backup plan.
View OriginalReply0
WhaleStalker
· 01-07 03:48
That's right, having a margin of error is the key. I used to be the kind of fool who went all-in with 900U, losing 5% in a single reverse trade. Now I've learned my lesson and stick strictly to 20%, and life has become much more enjoyable.
View OriginalReply0
BearMarketSurvivor
· 01-07 03:48
Really, seeing friends still going all-in with their entire positions makes me nervous for them. These three principles are simply about making money while alive, not losing everything in one shot.
View OriginalReply0
TokenomicsDetective
· 01-07 03:45
That's right, managing your mindset is much more difficult than technical skills. I've seen too many people go all-in and end up losing everything. Keeping 20% of my position has really saved me several times.
View OriginalReply0
NotGonnaMakeIt
· 01-07 03:42
That's so right, the margin of error is the key. I used to be that kind of fool who went all-in with 900U, losing so much that I doubted life. Now I strictly open positions with 20%, and although it seems slow, I've definitely survived longer.
View OriginalReply0
AirdropAutomaton
· 01-07 03:37
That's right, opening 20% positions has really saved me many times. Previously, I would go all-in, and a single fluctuation would wipe me out. Now, gradually pushing allows me to survive until the next bull market.
The true culprit of full-position liquidation is not leverage itself—it's that you didn't leave yourself room for mistakes.
Let's take $1000 as an example:
• $900 with 10x leverage, just a 5% market reversal, and your account is wiped out.
• Conversely, using only $100 with 10x leverage, the market would need to move 50% against you to threaten your position.
The latter's fault tolerance is far greater. After half a year of using full-position mode, I haven't been liquidated once and even doubled my funds. The secret isn't mysterious; it's these three rules:
**Rule 1: Never open a single position exceeding 20% of total funds**
$10,000 account? Use only $2,000 per trade. Even with a stop-loss, you only lose 2%-4% of your total funds. It won't hurt your core capital, and you'll still have bullets for the next trade.
**Rule 2: Keep single trade losses within 3% of total funds**
Set your stop-loss before opening a position. For example, with a $2,000 position, set the stop-loss at 1.5%, risking a maximum of $300—exactly 3% of your total funds. This bottom line must be maintained.
**Rule 3: Only trade in trending markets, and shut up after profits**
• Avoid trading during sideways markets; wait for a clear breakout trend before acting.
• After making a profit, don't "feel like it can still go up" and blindly add to your position. Use trailing stops to lock in profits, and don't let emotions amplify risks.
The correct way to use full-position trading is to leverage its flexibility to set a ceiling for each trade, not to gamble recklessly. A friend used to blow up his account every month, but after strictly following these three rules, he steadily grew his account from $2,600 to $53,000 in three months.
You can only earn consistently if you stay in the market long enough. True stability doesn't rely on luck to dodge crises—it depends on using rules to tightly lock in risk.
#以太坊大户持仓变化 $DOGE