Last night's market saw a liquidation of 290 million dollars. What does liquidation mean? It means evaporation, it means forced liquidation, and it means the market will take everything you have in this account without saying goodbye.

Yesterday, I received a private message from a fan. He said, 'Boss Crab, help me! What should I do? I've put all my meal money into it, and just as I opened it, I got buried. Looking at the order, the total position was 5000 oil, and I opened 4000 oil. He said he just opened a 100x short position, and now even the money for food is gone.'

This is not an isolated case. Opening various social media circles, all you see are such tragic stories. Some people use their betrothal money for trading, college students borrow online loans to leverage, and in the end, they owe hundreds of thousands, are forced to drop out and work. Miners short Ethereum, leading to bankruptcy and liquidation, and there are others who, due to repeated liquidations, completely break down mentally and exit the crypto circle.

The beginning of all stories of contract liquidations often starts with the belief that one can control everything. When full power returns to zero, sometimes it only takes 7 minutes, shorter than the time to cook instant noodles. A liquidation destroys not only your account but also your life and sanity. Many people, after liquidation, want to recover their losses and end up using up their credit limits.

If you really want to trade, or if you haven't been liquidated yet, these three iron rules must be engraved in your heart.

First, never trade with heavy positions. What you open will only disturb your mindset, making it impossible to hold onto profits. If you do not calculate the actual leverage, you cannot understand your actual liquidation price. A suitably large position can reduce the risk of liquidation, even if the market fluctuates greatly, there will be room for buffering.

Second, learn to decisively cut losses to avoid unexpected events that can bring you back to zero in an instant.

Third, only use spare money for trading. Only enter the market if you can afford to lose; never use mortgage money, betrothal money, or retirement funds. Do not think about turning your situation around by borrowing money or taking online loans. Only with spare money that does not affect your life can you remain calm and not lose your footing due to market fluctuations.

The terror of contract liquidation is far more than just losing money; it can bring you back to square one in an instant. There are many ways to make money in this circle; do not treat trading as the only option. The market can take your money, but do not let it take your life.