Family, who understands! At exactly 2 AM, I was discussing K-line trends with the God of Dreams when my phone vibrated like a massager. A fan from Jiangxi, Xiao Yang, who usually calls me 'Brother Sen' more affectionately than my own brother, sent a voice message with a crying tone that almost took me away: 'Brother Sen! I went all in with 1,000,000 in crypto assets on a long position, and added 10 times leverage, then it dropped by 3 points, and my account was directly cleared! Is this market targeting me on purpose?'
I rubbed my sleepy eyes and opened his transaction record, gasping in shock: 950,000 in principal went all in, let alone a stop-loss, there wasn't even a take-profit line drawn; this operation is simply the crypto version of 'if you don't mess with death, you won't die.' To be honest, I've seen this scene more times than I have seen fried dough sticks in a breakfast shop. Many retail investors always think 'going all in = resilience' and 'the heavier the position, the faster the profit,' not realizing that this is purely betting the principal, which is no different from running naked across the road.
Today, Brother Sen is going to speak from the heart: in the crypto market, going all in is not your 'wealth acceleration tool'; if misused, it becomes a 'capital harvesting machine'. Many people blame the leverage after falling, but the real culprit is your unbalanced position!
1. Don't blame leverage! The real culprit of liquidation is 'position weight'
Let's speak in the simplest terms without fancy formulas; after all, Brother Sen is not here to teach you math. Suppose you have an account with 100,000 in crypto assets:
If you impulsively take 90,000 to leverage 10 times, as soon as the market fluctuates 5 points in the opposite direction, congratulations, you will directly experience 'returning to the starting point overnight'; your account will be cleared faster than you can delete chat records. But if you only take 10,000 to leverage 10 times, even if the market makes a big reversal, it will take a 50-point fluctuation to flip over. This difference is comparable to walking versus launching a rocket!
Xiao Yang is a typical example of a 'heavy-position gambler', putting 95% of his capital on the line without setting a stop-loss. Isn't that like handing a knife to the market and shouting 'come cut me'? The market won't show you any mercy; a little pullback will grind you down.
2. Brother Sen's three core risk management principles: no flips for half a year with full positions and doubled profits
Having struggled in this market for 8 years, I've seen too many stories of overnight wealth followed by overnight zeroes. I've long engraved the words 'risk control' into my DNA. These three principles are what I've proven with real money; fans who follow them have stopped making the mistake of 'heavy position naked running'.
1. Single action should not exceed 20% of total assets
No matter how optimistic you are about a coin's trend, don't throw your entire fortune in. Take an account with 100,000 in crypto assets as an example; you should invest a maximum of 20,000 at a time. Even if your judgment is off and you look in the wrong direction, if you set a stop-loss in advance, losing 10% would only be 2,000, which doesn't hurt your capital base at all. As long as you have the mountains, you don't need to fear running out of firewood, right, buddy!
2. Single loss must not exceed 3% of total position
This is Brother Sen's 'lifeline'. Whoever touches it will flip the car! For example, if you invest 20,000 with a 10x leverage and set a stop-loss of 1.5% in advance, even if you really lose, you will only lose 300, which is exactly 3% of your total 100,000 position. Even if you make a few wrong judgments in a row, it won't hurt you deeply, and you won't have to exit the market directly. In contrast, those who don't set stop-losses think about 'holding on to recover', but end up losing more and more, with no place to cry.
3. Don't fidget during volatile markets; don't chase high profits
Many retail investors like to fidget during sideways markets, thinking 'if I don't enter now, I'll miss out on a fortune.' As a result, they get stuck as soon as they enter, turning themselves into 'bag holders'. Brother Sen's principle is: only enter when there is a clear trend breakthrough; no matter how tempting sideways market conditions are, don't reach out. And after opening a position, absolutely do not add to it; don't let emotions cloud your judgment, thinking 'if I add more, I can make more.' In the end, you'll give back all your profits.
3. The correct way to open a full position: it's a 'cushion', not 'gambling chips'
In fact, the original intention of going all in is very good, as it allows room for error in market fluctuations. But the premise is that you must 'test the waters with light positions' and strictly implement risk control. If you treat your entire position as a 'gambling tool', the market will teach you a lesson in no time.
There was a fan who complained to me every month about 'the account flipped again'. Later, after following these three principles with me, his 50,000 crypto assets directly increased to 80,000 in three months. He later told me: 'I used to think that going all in was the only way to get rich quickly, but now I understand that going all in is to live more steadily and longer in the market.' This really hit home for Brother Sen!
To be honest, in the crypto market, it's not about who makes money fast, but who can survive longer. Those who think about 'getting rich overnight' usually end up as the market's 'chives'. Bet less on direction, control your position more, and sometimes going slow can actually lead to going further.
The market has daily fluctuations, and opportunities are never lacking; what is lacking are people who can preserve their capital and seize opportunities. If you often find yourself in pits, either being stuck in heavy positions or running away after making a little profit, following Brother Sen is definitely the right choice! I will continue to share more trading tips and risk control techniques in the crypto market to help you avoid those pitfalls that can lead to total loss.
Finally, Brother Sen wants to ask everyone: have you ever had an experience of 'heavy position naked running' flipping over? How did you handle it at the time? Let's chat in the comments; I'll randomly select 3 buddies to send my exclusive (retail risk management pitfall avoidance manual)! Follow me@Square-Creator-33c22d76cfff5 #加密市场反弹 $BTC
