At 3 a.m., a friend's desperate call came in. He used 10,000 USDT to open a full position with 20x leverage, and when the price only retraced 5%, he got liquidated — his account was wiped out.
I checked his position history, and the problem was obvious: full position opening, high leverage, no stop-loss set. Many novice traders have fallen into this trap, thinking that full position trading can "stabilize market fluctuations," but in reality, it leads to faster losses than isolated positions.
**Why is full position liquidation so easy? The real culprit isn't the leverage multiplier**
Here's an example. In an account with 1,000 USDT: - Using 900 USDT to open a 10x leverage position, a mere 5% adverse move will directly liquidate - Using 100 USDT to open a 10x leverage position, it takes a 50% adverse move to get liquidated
With the same leverage, different account sizes mean vastly different risks of liquidation. My friend put 95% of his principal into one position; a small retracement triggered liquidation. The larger the position, the less room for error — this is the fundamental reason for full position liquidation.
**Stick to 3 principles, and I’ve been using full positions for half a year without liquidation**
First: No single position should exceed 20% of the total account funds. For example, with a 10,000 USDT account, invest at most 2,000 USDT in one trade. Even if you get the direction wrong and set a 10% stop-loss, you only lose 200 USDT, leaving the principal intact and still having a chance to rebound.
Second: Never risk more than 3% of the total position on a single stop-loss. Taking a 2,000 USDT position with 10x leverage as an example, set a 1.5% stop-loss in advance, which results in a 300 USDT loss, exactly 3% of the total funds. Even a few wrong trades won't hurt your core capital.
Third: Avoid opening positions in choppy markets; never chase profits by buying high. Only trade in clear trending breakouts, and stay on the sidelines during sideways consolidation, no matter how tempting. Once you open a position, strictly follow your plan and don't let emotions lead you to add more.
**The correct way to use full positions: It’s a buffer, not a gambling tool**
The original purpose of the full position mode is to leave room for market fluctuations, but this requires light initial sizing and strict risk control.
There’s a follower who was always on the brink of liquidation. After applying these three principles, he turned 5,000 USDT into 80,000 USDT in three months. He told me something that left a deep impression: "I used to think full position was gambling my life, but now I realize it’s about staying safe."
The real secret in crypto is not who makes the most money quickly, but who survives the longest. Avoid betting on market direction; focus on position management. Slow growth is actually the fastest way.
Survival is more valuable than getting rich overnight. Are you ready to change your mindset?
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
9 Likes
Reward
9
5
Repost
Share
Comment
0/400
PretendingSerious
· 01-11 12:56
Too many emergency calls at 3 a.m. this time again, all following the old routine of full liquidation.
After reviewing a friend's trades, 95% of their capital was all-in, with 20x leverage, and no stop-loss—this is not trading, it's suicide. Really, many beginners don't understand that high leverage isn't the problem; heavy positions are the real deadly poison.
The three principles in this article I actually have been using for a long time: 20% per trade, a 3% stop-loss, and opening positions based on trend. This is the simplest and most effective way to stay alive. Not all market conditions are worth participating in; during sideways markets, just shut up. That’s what long-term crypto traders do.
It feels like, making quick money and surviving long-term are often two different paths. I’ve now chosen the latter.
View OriginalReply0
SchrodingerAirdrop
· 01-11 12:53
Taking a life-saving call at 3 a.m., this is the cost of not setting a stop-loss. 20x full position, 5% gone in an instant, no wonder liquidation feels like giving away money.
View OriginalReply0
RugResistant
· 01-11 12:30
20x leverage no stop loss is basically asking to get liquidated lmao, red flags everywhere here
Reply0
liquidation_watcher
· 01-11 12:29
Friend, getting liquidated at 3 a.m. is really crazy. Going all-in with 20x leverage and no stop-loss? That's just giving away money.
At 3 a.m., a friend's desperate call came in. He used 10,000 USDT to open a full position with 20x leverage, and when the price only retraced 5%, he got liquidated — his account was wiped out.
I checked his position history, and the problem was obvious: full position opening, high leverage, no stop-loss set. Many novice traders have fallen into this trap, thinking that full position trading can "stabilize market fluctuations," but in reality, it leads to faster losses than isolated positions.
**Why is full position liquidation so easy? The real culprit isn't the leverage multiplier**
Here's an example. In an account with 1,000 USDT:
- Using 900 USDT to open a 10x leverage position, a mere 5% adverse move will directly liquidate
- Using 100 USDT to open a 10x leverage position, it takes a 50% adverse move to get liquidated
With the same leverage, different account sizes mean vastly different risks of liquidation. My friend put 95% of his principal into one position; a small retracement triggered liquidation. The larger the position, the less room for error — this is the fundamental reason for full position liquidation.
**Stick to 3 principles, and I’ve been using full positions for half a year without liquidation**
First: No single position should exceed 20% of the total account funds. For example, with a 10,000 USDT account, invest at most 2,000 USDT in one trade. Even if you get the direction wrong and set a 10% stop-loss, you only lose 200 USDT, leaving the principal intact and still having a chance to rebound.
Second: Never risk more than 3% of the total position on a single stop-loss. Taking a 2,000 USDT position with 10x leverage as an example, set a 1.5% stop-loss in advance, which results in a 300 USDT loss, exactly 3% of the total funds. Even a few wrong trades won't hurt your core capital.
Third: Avoid opening positions in choppy markets; never chase profits by buying high. Only trade in clear trending breakouts, and stay on the sidelines during sideways consolidation, no matter how tempting. Once you open a position, strictly follow your plan and don't let emotions lead you to add more.
**The correct way to use full positions: It’s a buffer, not a gambling tool**
The original purpose of the full position mode is to leave room for market fluctuations, but this requires light initial sizing and strict risk control.
There’s a follower who was always on the brink of liquidation. After applying these three principles, he turned 5,000 USDT into 80,000 USDT in three months. He told me something that left a deep impression: "I used to think full position was gambling my life, but now I realize it’s about staying safe."
The real secret in crypto is not who makes the most money quickly, but who survives the longest. Avoid betting on market direction; focus on position management. Slow growth is actually the fastest way.
Survival is more valuable than getting rich overnight. Are you ready to change your mindset?