At 2 AM, my phone kept ringing. A friend from Foshan anxiously left a voice message: "Brother Sen, I opened a long position with 20x leverage on a full position of 10,000 USDT, and after a 5% pullback, I've lost all my money. What happened?" $BAR
When I looked at his trading record, he had used all his funds with 20x leverage and hadn't even set a stop-loss.
Many people mistakenly believe that "full position = can withstand losses," but the reality is quite the opposite—badly managed full positions can lead to faster losses than partial positions.
1. The key to a full position liquidation: it's not leverage, but position size
For example, with a 1,000 USDT account:
If you use 900 USDT with 10x leverage, a 5% market reversal will liquidate your position, and your account will go to zero; however, if you use 100 USDT with 10x leverage, you need a 50% fluctuation to get liquidated. My friend's problem was that he bet 95% of his principal, and a slight pullback led to his liquidation.
2. Three principles that allowed me to use full position for six months without liquidation and even double my funds
No single trade should exceed 20% of total capital
Assuming you have a 10,000 USDT account, then the maximum you can invest in one go is 2,000 USDT. Even if you misjudge the direction, with a 10% stop-loss, you would only lose 200 USDT, which wouldn't hurt your principal, leaving you with opportunities to rebound.
Single loss should never exceed 3% of total capital
For example, if you use 2,000 USDT with 10x leverage, set a 1.5% stop-loss in advance. A loss of 300 USDT is exactly 3% of total capital. Even if you make several wrong moves in a row, it won't severely affect you.
Do not open positions in a volatile market, do not chase high profits
Only open positions during trend breakouts; do not rashly enter during sideways markets, no matter how tempting. After opening a position, never add to it to avoid emotional interference.
3. The true use of a full position: it's a buffer, not gambling
The original design of a full position is to allow for some margin of error for market fluctuations, but the prerequisite is to test with smaller positions and strictly enforce risk control.
Once, a fan of mine faced monthly liquidations before meeting me. After following these three principles, he turned 5,000 USDT into 80,000 USDT in three months.
He said: "I used to think a full position was a gamble for survival, but now I understand that a full position is about living more steadily." The secret to survival in this circle is not who makes money the fastest, but who lives the longest. #币圈暴富
Bet less on direction, control position more, slow is fast. #加密市场观察
Markets are always there, but opportunities don't wait for anyone. If you also want to seize opportunities accurately without losing direction, join Brother Sen and strategize together! #加密市场反弹
