2025-12-30 00:20:17

In a trading career, I've seen countless people blow up, but what truly determines life or death is often not getting the direction wrong, but overleveraging with a big bet. When the price drops 10%, you can still comfort yourself; at 30% decline, cold sweat starts to break out; at 50%, you completely lie flat—by then, rationality has long gone offline, and there's no point in talking about a trading system anymore.

Frankly, the gap between experts and novices is never about how much they make, but whether they can hold their bottom line when losing.

**Think Clearly About the Worst-Case Scenario Before Entering**

I've seen too many people operate with "gambler's logic": when the price drops, they lower their average cost; but when it really falls, they find their principal has already been fully invested, and they are forced to cut losses. This is the routine for most people.

Here's a different approach: limit each trade to no more than 5% of your principal, set a stop-loss in advance (for example, exit immediately if it drops 15%), and act quickly when the time comes—no dithering. It sounds like losing, but in reality, it's about survival.

Speaking of leverage, it’s even more outrageous. How did the $19 billion liquidation event blow up? Nine out of ten cases are chain reactions of leverage. Altcoins are already volatile, and riding leverage is like driving without a seatbelt—if the market jitters even slightly, you’ll be thrown out immediately.

My habit is simple: before placing an order, write down the "worst possible loss" number. If this number keeps you awake at night, reduce your position immediately. Only play if you can afford to lose.

**When executing, treat yourself as an emotionless machine**

After holding a position, human flaws are fully exposed. When the account rises, you want to "greed a bit more"; when it falls, you comfort yourself with "it will come back." The result? You either greed at the peak or get trapped at the bottom.

Stop-loss is not about being cowardly, but about staying alive. Set a hard stop-loss line, for example, if a key support level is broken, reduce your position by 30%, and do so again if it breaks further. Instead of regretting after being deeply trapped, better to exit early.

Take profits aggressively too. Don’t foolishly wait for the entire fish; that’s a fairy tale. I often use a phased selling method: sell part of the position after a 20% increase, sell another batch after a 50% rise. This way, you lock in gains and leave room for doubling your money.

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GateUser-44a00d6c

· 6h ago

Wow, only 50% relaxed? I would have already started freaking out at 20%, hahaha

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LiquidityOracle

· 6h ago

Damn, that's so realistic. I really resonate with the part about losing 50%.

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rugdoc.eth

· 6h ago

Going all-in is the real killer, not the market --- Honestly, every time I see someone go all-in, I sweat for them --- A 5% stop-loss has saved me many times, but it's easy to be soft when executing --- Leverage is seeking death; I won't touch it again after the bloody lessons --- Being able to afford losses is key to longevity, this really hits home --- Batch selling is indeed smart; no need to gamble on the highest point --- When it drops 50%, people are truly done for; no system can help --- The key is to control greed at the right moment, it's too difficult --- That's why most people end up cutting losses and exiting

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BlockchainGriller

· 6h ago

Really, I've seen too many cases of all-in, and sometimes you can lose everything, even your pants. The moment you lose 50%, you really go crazy, and nothing else matters. Writing down a 5% position stop-loss, your sleep quality immediately skyrockets. This isn't a loss, it's saving money. Leverage is just for the chives; a 19 billion liquidation is the inevitable result. Selling in batches is the right way; don't be greedy for that last piece of meat, save your life to come back again. That's right, only those who can afford to lose can keep playing. That hits hard. The harshest thing in trading isn't being ruthless to others, but being ruthless to your own greed. Setting a stop-loss line firmly is more effective than anything else; if you don't execute it, you're just waiting to jump off a building. When your account rises, you want to add more; when it falls, you deceive yourself. This is the common flaw of 99% of people. This logic should have been learned long ago, but unfortunately, by the time you understand it, the money is already gone.

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LiquidatedAgain

· 6h ago

Once again seeing someone all-in on altcoins... Do you really dare to place an order without writing down your liquidation price? I truly don't understand. --- A 50% drop and still telling yourself "this is an opportunity"? Brother, that's a gambler's mentality. --- Opening leverage is like opening Pandora's box. Isn't the lesson from $19 billion enough? --- I think a 5% risk control is still a bit loose; I'm at 3% now... Only after being liquidated do I understand. --- Hard stop-loss lines have saved me many times. Although I lost money, at least I’m still alive. Compared to being deeply trapped, that’s heaven. --- I also use the method of partial take-profit, but honestly, executing it really tests human nature... Always wanting to wait a bit longer. --- The worst thing is the "cost averaging" mentality—one dip after another, ending up with no principal left. --- Watching the account drop 30%, rationality indeed goes offline. At that moment, my mind was all mush. --- When key support is broken, reducing position by 30% directly sounds harsh, but compared to a margin call later, it’s nothing. --- Can't sleep at night and still trading? That means your position is too heavy. It’s time to reduce.

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POAPlectionist

· 7h ago

I've seen too many cases of all-in, and in the end, they all lead to the same conclusion. Really, the 5% position strategy is correct in theory, but no one can truly stick to it. Leverage is a trap; the liquidation of 19 billion that time was painful to watch.

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QuietlyStaking

· 7h ago

HODLing is truly the number one killer in crypto trading; I've seen too many who could have come out alive but ended up with nothing. --- 5% position + hard stop-loss sounds conservative, but it's really the basic skill that keeps you alive. --- Leverage strategies make you feel like the chosen one every time, but the market slaps you down and everything is gone. --- Taking profits in batches is the real way; don't wait for a skyrocket. Most people end up greedy at the top. --- Holding on after a 50% drop is truly a sickness; by then, your mind is long gone. --- This article talks about the harsh truth in trading: most people die on "wait a bit longer" and "averaging down." --- Being able to sleep well is a hundred times more important than making quick money. If it exceeds your psychological threshold, it's time to clear your positions. --- Playing with leverage on altcoins is really a deadly combo—it's like buying a coffin when you get on the train. --- The only difference between experts and beginners is that the former knows when to admit defeat. --- The 5% per trade figure looks small, but with compound interest, many projects double in a year. Why gamble your life away?

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