At two in the morning, my phone kept ringing. A friend from Jiangxi kept sending voice messages, sounding panicked:
"Bro, I opened a 10x long position with my entire 10,000 USDT, and after a 3% pullback, the money is gone. What happened?"
I looked at his trading records and saw that he went all in with 9,500 USDT, without even setting a stop loss.
Many people mistakenly believe that "going all in = being able to withstand losses," but in fact, it is quite the opposite—using all your capital improperly can lead to a quicker demise than using partial capital.
1. The key to an all-in liquidation: it's not leverage, it's position size
Taking a 1,000 USDT account as an example:
With 900 USDT at 10x leverage, if the market moves against you by 5%, it goes to zero directly;
But with 100 USDT at 10x, it needs to move 50% against you to liquidate.
My friend put 95% of his capital in, used 10x leverage, and a slight pullback wiped him out.
2. Three principles that allowed me to use my entire capital for half a year without liquidation and still double my money
1. A single trade should not exceed 20% of total capital
With a 10,000 USDT account, the maximum investment at one time is 2,000 USDT.
Even if I misjudge the direction and set a stop loss at 10%, I only lose 200 USDT, which doesn't hurt the principal, and I can recover at any time.
2. A single loss must never exceed 3% of total capital
For example, with 2,000 USDT at 10x, setting a stop loss at 1.5% in advance means a loss of 300 USDT, which is exactly 3% of total capital.
Even if I make several wrong trades, it won't hurt my fundamentals.
3. Do not open positions during fluctuations, and do not add to profits
Only trade in trending breakouts; even if the sideways market looks tempting, stay observant;
Once I open a position, I never add more, eliminating emotional interference.
3. The true use of going all in: it's a buffer, not gambling
The original intention of going all in is to leave room for error in volatility, but the prerequisite must be testing with light positions + strict risk control.
There was a fan who repeatedly faced liquidation every month. After implementing these three rules, he grew his 5,000 USDT to 8,000 USDT in three months.
He said: "I used to think going all in was risking my life, but now I understand that going all in is to live more steadily."
Survival in the crypto world is not about who makes money the fastest, but about who survives the longest.
Timing is not about blind guessing: if you want to avoid the fate of being a "retail trader" and accurately grasp the rhythm of rebounds, you might as well follow me, Le Ge, as I will provide real-time analysis of market dynamics, helping you find the best entry points and steadily seize opportunities amidst volatility.