The night before last, a fan in Hainan called me several times at one in the morning, speaking as if he had become a different person. He said: 10,000 USDT fully invested with ten times leverage, only a 6% pullback, and the position was fully liquidated. $RAVE
I looked at her position history; she had more than five positions and liked to invest heavily!
She thought she could withstand the full investment, but ended up losing faster than with gradual liquidation. $BEAT
The key to a full liquidation is often not the leverage ratio, but the fact that your position is too heavy. For a 1,000 USDT account, if you use 900 USDT for ten times leverage, a reverse fluctuation of five points will bring it to zero directly.
But if you only use 100 USDT for ten times leverage, you need a fluctuation of fifty points to get liquidated.
That friend almost bet all her principal; with just a slight pullback, the account was wiped out.
Meanwhile, I haven’t been liquidated in six months while using full investment and even doubled my money, relying on three principles:
First: Never exceed twenty percent of total capital in a single investment.
For a 10,000 USDT account, the maximum investment at one time is 2,000 USDT. Even if I misjudge the direction and stop loss at ten points, I only lose 200 USDT, which doesn’t hurt the foundation and I can restart at any time.
Second: Single losses must never exceed three percent of total positions.
For example, if you use 2,000 USDT with ten times leverage, set a stop loss at 1.5 points in advance; losing 300 USDT is exactly three points of total capital, and several consecutive mistakes won’t harm significantly.
Third: Never open a position in a volatile market, and absolutely do not increase positions even if you are profitable.
Only seize opportunities for trend breakthroughs; no matter how enticing a sideways market is, just watch without acting;
After opening a position, regardless of price fluctuations, do not add positions emotionally.
The real purpose of full investment is to leave room for error for oneself, not to gamble.
Previously, a fan who was liquidated every month executed these three rules and after three months rolled over from 5,000 USDT to 8,000 USDT.
He said he used to think full investment was a life-and-death gamble, but now he understands that full investment is to live more steadily.
Surviving in the cryptocurrency circle isn’t about who earns fast, but who lasts longer.
Gamble less on direction, control positions more, slow is fast.
The market is always there, but the rhythm waits for no one.
Going solo can never compare to having a team to guide you; if you want to get onshore and flip the cabin, I am always here.
