The day before yesterday, a friend called with a voice message, sounding quite anxious: "Why did my full position account still blow up?" I checked his trading orders, and the situation became clear.



With a capital of 5000U, he had put 4500U into a position with over 10x leverage, and he hadn't set a stop-loss. The market only dropped 3%, and his account was wiped out instantly. Many traders misunderstand full position trading, thinking that going all-in means holding through the downturn, but in reality, it's a double-edged sword. If not used properly, it only accelerates liquidation.

Actually, the real culprit behind liquidation isn't the leverage multiple, but the proportion of invested funds. With the same 10x leverage, investing 90% of your capital can be wiped out with just a 5% adverse move, but if you only invest 10%, even a 50% reversal won't kill you. That's the key difference.

I personally adhere to three iron rules, and over the past six months, I haven't blown up my account and even doubled my capital, so it's worth trying:

1. Use 20% of your funds for each trade, leaving the rest as a buffer.
2. Set a maximum loss limit of 3% of your total capital per trade, and pre-set your stop-loss without hesitation.
3. When encountering volatility, reduce your position; when facing high profits, suppress greed; wait until the trend is truly clear before taking action.

There was a fan who kept blowing up his account month after month, but since adopting this strategy, he turned 5000U into 8000U in three months. The principle of full position trading is actually very simple: it's not about gambling for sudden wealth, but about steadily earning while staying alive.

Tools themselves are neither good nor bad; making money or not depends entirely on how you manage your positions. If position management has always troubled you, start adjusting your strategy today for a more stable and sustainable journey.
View Original
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.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)