When I looked at his trading records, I was shocked—9,500 units of digital assets were fully invested without any risk hedging settings.
In the past few years of trading cryptocurrencies, I've seen too many people fall into the deadly misconception that 'full margin = risk resistance.' Today, I'm sharing some fundamental insights that can help you avoid 3 years of detours: full margin is not about 'betting big'; if used incorrectly, it can lead to faster losses than using a lighter margin. When used correctly, it can keep you steady as a rock amidst volatility.
Why does full margin often lead to the complete loss of funds? The core issue is never leverage; it's how much principal you have staked.
For example, if you have an account of 1000 units of digital assets and you use 900 to open 10x leverage, and the market moves against you by 5 points, you should exit immediately; but if you only use 100 to open 10x, even if the market jumps by 50 points, you can still smile and watch the show. My friend from Guangdong threw in 95% of his principal; leverage only amplified the risk, the real danger is 'too heavy a position'.
As an experienced player who has fallen into the full position pit 3 times and is now doubling down on the full position, I have summarized 3 iron rules. After following them for half a year, I have not only avoided losing my principal but also managed to double my account. I'm sharing them for free with you today:
First, only use 20% of the total funds for each trade. No matter if your account has 10,000 or 100,000 units of digital assets, the maximum investment per entry is 20%. Even if you misjudge the direction and stop-loss at 10 points, you will only lose 2% of the total funds. The principal remains intact, and there are plenty of opportunities to recover.
Second, a single loss should never exceed 3%. This is a red line I haven't broken in years! For example, if you open a 10x leverage with 2000 units of digital assets, calculate the risk point in advance, and set the hedge at 1.5 points, even if you lose, it's only 300 units, which is exactly 3% of the total funds. Even if you make three or four consecutive wrong moves, it won't be too damaging, much better than wiping out everything in one go.
Third, avoid trading in a volatile market and never chase positions after making a profit. This is the most challenging rule for one's mindset! Even if the sideways market is tempting, don't reach out; just wait for a clear signal of a trend breakthrough. Once you enter, no matter how much you earn, don't add to your position again; 90% of those who chase in with emotional highs end up as bag holders.
Many people think that a full position is 'all-in for a win or loss', but true experienced players understand: the core of a full position is 'leaving a buffer'. Its original design is to allow you to catch your breath amidst the violent fluctuations of the crypto market, rather than pushing all your chips to the gambling table.
There was a fan who had to experience 'account wipeout' every month. Later, after following these 3 principles with me, he grew his 5000 units of digital assets to 8000 units in three months. He later told me: 'I used to think a full position was a gambler's game, but now I understand that a full position is the wisdom that allows you to survive steadily.'
The crypto market is never about who earns fast, but about who survives longer. If you still treat the full position as a gambling table, you'll eventually be ground down by the market; but if you understand the logic of 'light position trial and error + strict risk control', the full position can become your moat.
I will continue to share practical risk control techniques for crypto trading, from position management to market judgment, all are solid tips without fluff. Follow me to avoid those pitfalls that can make you go bankrupt overnight, and earn slowly and steadily - after all, in this market, if you survive, you've already beaten 90% of the people!
