A few days ago, a friend from Sichuan contacted me in the middle of the night
His voice was trembling: Bro, with ten thousand dollars long, it only dropped three points, and the account is zeroed out
I looked at his positions—almost fully invested without even setting a stop-loss
Many people think they can withstand volatility with full positions, but it's quite the opposite:
The heavier the position, the quicker the loss
The key to a total account blowout is not the leverage ratio, but the proportion of your invested capital
Using one thousand dollars as an example:
If you invest nine hundred dollars at twenty times leverage, a 5% adverse movement in the market wipes you out
But if you only use one hundred dollars at twenty times leverage, it would take a 50% drop to blow up
My friend almost went all in, and a slight pullback wiped him out
How can you survive longer with a full position? I summarized three points:
First, the single position should not exceed twenty percent of total funds
With a ten thousand dollar account, the maximum investment at one time is two thousand
That way, even if you set a stop-loss at 10%, you only lose two hundred, which doesn’t hurt the foundation
Second, a single loss should never exceed 3% of the total account
For example, investing two thousand dollars at ten times leverage, setting a stop-loss at 1.5% beforehand will just result in a 3% total loss. Even if you make a few mistakes, you won’t be knocked out.
Third, do not open positions in a volatile market, and never add to your profits
Only engage in clear breakout trends, and be more observant during sideways movements
Once you open a position, do not increase your stake to avoid being swayed by emotions
The real purpose of going all in is to leave some room for error in your operations
Not to risk everything in one go
Previously, a follower of mine would blow up every month
Adhering to these three points for three months
His account gradually grew from five thousand to eight thousand
He said, he used to think going all in was gambling with his life
Now he understands that using a full position correctly is to live more steadily
In the crypto world, it’s not about who earns faster, but who lasts longer
Gamble less on direction, control your position more, slow is fast @顶级带单飞哥
