At two in the morning, a friend from Zhejiang called me with a trembling voice:
"Sister, I opened a position with 30x leverage with 10,000 U, and it only dropped by 3%, how did it explode directly?"
I looked at his records and understood at a glance —
He put in 9,500 U without even setting a stop loss.
Many people think that "full position" means it can withstand the pressure,
But the truth is: if not used properly, going full position can lead to faster losses than using a partial position.
The real killer of liquidation is often not how high the leverage is,
But rather — the position size is too heavy.
Think about it, with an account of 10,000 U,
If you use 9,500 U to open a position, as soon as the market gently shakes in the opposite direction, the account can be wiped out.
But if you only use 1,000 U to open,
The price has to move against you by 50% for liquidation to occur,
This is completely a different level of risk.
I myself have used full positions for more than six months without facing liquidation,
And my account has doubled, relying not on luck, but on three iron rules.
First rule:
The single position size should never exceed 20% of the total capital.
With an account of 10,000 U, the maximum I would use at one time is 2,000 U.
Even if the judgment is wrong, with a stop loss of 10%,
The loss would only be 200 U, which won't harm the core.
Second rule:
Single loss should never exceed 3% of the total capital.
For example, if I open 2,000 U at 10x leverage,
I will set the stop loss in advance at around 1.5%,
The maximum loss would be 300 U, exactly 3% of the total capital.
Even if I make several consecutive wrong trades, the account can still survive steadily.
Third rule:
Do not open positions in a sideways market, do not increase positions in profit.
I only take action at clear breakout points with obvious trends and structures.
No matter how tempting the sideways market is, I won't touch it.
After entering a position, I absolutely will not increase my position size just because the price has risen,
The rhythm is more important than the profit.
You must understand one thing:
The original intention of full position design is to give you margin for error, not to let you gamble with your life.
There was a fan before who almost faced liquidation every month.
Later, he honestly followed these three rules,
In three months, he turned 5,000 U into 8,000 U.
He later told me a sentence that I remember very clearly:
"I used to think that full position was gambling,
Now I understand, using full position correctly is to live more steadily."
In this market,
Staying alive is always more important than making quick money.
Gamble less on direction, control position more.
Slow down, and you’ll actually get there faster.
If you can’t control yourself,
The guiding light has always been there,
It just depends on whether you are willing to follow it.
