I was awakened in the early morning by a voice message from that girl from Wenzhou who had consulted me before. Her voice was trembling:

"My 6000U account was directly wiped out... I opened a 5x long position with full leverage, and it just pulled back a little, how could it be gone?"

Let her send over the transaction records for a look; the problem is too obvious - 5800U was thrown in all at once, without even setting a stop loss.

Many people have a fatal misconception about margin trading: they think that investing all their capital will yield greater profits. But in reality?

Using the full margin is like a car with a failed brake; once the direction is misjudged, the speed of liquidation is terrifyingly faster than using the isolated margin.

Frequent liquidation of the entire position is not fundamentally due to high leverage, but rather because the position allocation is too heavy.

For an account with 800U:

If you use 750U to open a full position with 5x leverage, a 6% reverse fluctuation in the market will directly lead to liquidation.

But if you only use 75U with 5x leverage, it will have to fluctuate to 86.7% to lose everything, which shows a nearly 13 times difference in risk resistance.

The girl put 96.7% of the principal on the line, and with 5x leverage, this little pullback can't hold up at all.

This year I paid a lot of tuition myself and figured out 3 survival rules for "not getting liquidated with a full position":

Not only did I preserve the principal, but the account also increased by more than 70%.

**Rule 1: Single investment should not exceed 7% of total funds**
For example, in a 6000U account, you can invest up to 420U at a time. Even if it triggers a 7% stop loss, the loss would only be a little over 29, which has an almost negligible impact on the principal.

**Article 2: Control single loss within 1.1% of total funds**
Taking 420U as an example with 5x leverage, setting a 1% stop-loss in advance, a loss of 8.4U is exactly 1.1% of the total capital, allowing for timely exit during small losses, preventing deep entrapment.

**Article 3: Firmly remain in cash when the market is unclear**
Don’t rush to increase your position even when you're making a profit; wait until the trend is truly clear before entering—such as when the daily chart breaks through key resistance with accompanying volume. At this point, enter the market to avoid being thrown off by short-term fluctuations.

A friend of mine used to get liquidated every month, but after following these three iron rules for four months, he increased his capital from 3200U to 55000U.

He told me: "I used to think that going all in was gambling with my life, but now I understand that true all-in trading is about surviving steadily."

In the past, I stumbled around in the dark, but now I have a lamp in my hand.

The light is always on; it just depends on whether you will walk this path.