Mr. Wang, I opened a 3x short position with 12000U, and it went up by 4 points, and my account is gone.

At three in the morning, a brother from Shenzhen sent me this message.

I looked at his records: full position, no stop-loss.

12000U, a position wiped out.

In the crypto circle for ten years, I've seen this too many times.

Many people think the market is ruthless; in fact, most of the time, it’s themselves who push themselves into a dead end.

Many people have been making a mistake:

Liquidation is often not due to high leverage, but because of too heavy a position.

I calculated an account for him:

If you have a 10000U account and use 8000U to open at 3x, the market moving against you by more than 3% could lead to liquidation.

But if you only use 1000U to open at 3x, even if the fluctuation is twenty or thirty points, the impact on the account is still very limited.

The problem has never been leverage; it’s about betting all your chips at once.

Later, I sent him the three trading principles I've always used:

First, the position of a single trade should not exceed 8% of the principal.

For a 12000U account, one trade should be no more than 1000U; even if you make a mistake, it’s just a small loss.

Second, control the risk of a single trade within 1.5%.

Calculate the stop-loss in advance; no matter how much you lose, it’s within the plan, and the trading mentality naturally stabilizes.

Third, in a volatile market, it’s better to stay out of the market.

If there’s no trend, wait; wait until the direction comes out before acting.

There was a student before who liquidated every month.

Later, by following these three rules, he gradually increased his 6000U to 7800U in two months.

He said something very true:

I used to think that going all in was about seizing opportunities, but now I understand —

Real trading is about first protecting the principal.

The market rarely suddenly causes people to liquidate;

Most liquidations, in fact, are due to not following the rules.

I myself went from losing to only having 20000U, and I’ve come this far,

Relying not on luck, but on leaving myself a way out with every trade.

I am Mr. Wang, only doing real trading.

Recently, I have also been paying attention to some new projects in the Meme sector, researching the next wave of opportunities; friends who are interested can communicate together.