After spending a long time in the cryptocurrency world, you will discover a heartbreaking fact: what truly leads to liquidation is not the leverage itself, but the reckless increase in positions and the margin running low.
How many people, with just a few hundred U, dare to pry open tens of thousands in profits, claiming "small bets for big returns", but in reality, they are——
sending themselves to the guillotine.
When the market slightly shakes, it’s not a trend reversal,
it’s not the big players dumping,
it’s just an ordinary fluctuation,
and the result?
The position can't hold up, and is directly thrown off the market.
The most heartbreaking part is not being wrong.
If you're wrong, you can at most admit defeat,
and comfort yourself with a phrase like "judgment error".
The most painful part is: you clearly saw the right direction.
The trend is right there,
there's nothing wrong with the logic,
and the market really pulls you up afterwards.
But you?
Because your position is too full,
because the leverage is too aggressive,
you get wiped clean by a small pullback.
By the time you crawl out, covered in dust,
and look up——
the price has already raced up according to your initial expectation.
That feeling,
is not the pain of losing money,
but the frustration of being mocked by fate.
Many novices have a fatal misconception:
they think liquidation = high leverage.
In fact, that’s not correct.
Liquidation = you have consumed all your margin for error.
Margin is sticking close to the red line,
with a slight wind blowing,
the market can easily take you away.
You are not trading,
you are gambling that the market must "hit the target in one step".
But what the market is best at,
is first shaking you up,
then proceeding as planned.
Why do veterans survive longer?
It’s not because they are more accurate,
but because they leave themselves an escape route.
