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Details: https://www.gate.com/zh-tw/announcements/article/47455
In the world of cryptocurrency trading, full margin trading is often misunderstood as a shortcut to high risk and high returns. However, a painful experience of an investor reveals the dangers of this idea. She used all her funds for high-leverage trading without setting a stop-loss, resulting in heavy losses from a minor pullback.
This case highlights a key point: the risk of full-margin trading does not lie in the leverage itself, but in how to manage the principal. For example, if 900U is invested in a 10x leverage trade with a 1000U account, a mere 5% adverse fluctuation could lead to liquidation. In contrast, if only 100U is invested, a 50% fluctuation would be required to face the same risk.
To conduct whole warehouse trading more securely, there are three core principles worth following:
1. Single transaction limit: Each transaction shall not exceed 20% of the total funds. This effectively controls the risk exposure of a single transaction.
2. Loss limit setting: A single loss should not exceed 3% of the total funds. This helps to protect the overall fund security.
3. Timing of Entry: Avoid entering the market during fluctuations; wait for clear trend signals, such as a 4-hour candlestick breaking through previous highs.
In addition, there are three practical trading tips:
First, adopt a dynamic stop-loss strategy. When profits reach 10%, adjust the stop-loss point to the breakeven position to lock in profits.
Secondly, use the position calculator. By inputting total capital, leverage, and acceptable loss, scientifically calculate the maximum entry amount to avoid over-risking.
Finally, pay attention to changes in trading volume. When breaking through previous highs, if the trading volume significantly increases (for example, by more than twice), the trend may be more reliable. Conversely, it may be a false breakout.
The true value of full warehouse trading lies not in reckless bets, but in steady growth through reasonable position management, strict risk control, and exquisite trading skills. As one investor said, after systematic learning and practice, his perspective shifted from 'full warehouse is risky' to 'full warehouse is using skills to exchange for safety,' and he increased his funds from 5000U to 8000U within three months.
This shift in methodology not only helps traders better control risk but also find stable profit opportunities in a volatile market. It emphasizes the importance of rational thinking and a systematic approach in cryptocurrency trading, rather than blindly pursuing high-risk, high-reward.