Anyone who has been in the trading circle for a few years has definitely seen similar complaints: "I was sure about the direction but still got liquidated," or "The market seems to be deliberately targeting retail investors." These statements sound aggrieved, but to be honest—90% of liquidation events have nothing to do with the market; they are entirely due to traders' own decision-making errors.

Having been in this industry for 8 years, I’ve stepped on many pitfalls. My biggest takeaway is: the vast majority blame leverage for their liquidation, which is a complete misconception. I’ve seen traders who profit steadily with 100x leverage, and beginners who lose everything in a week with 3x leverage. Leverage itself isn’t the problem; the issue lies in your position management.

The core logic is this: Actual risk = leverage multiplier × position size ratio. In other words, a 1% position with 100x leverage actually carries a lower risk level than full exposure in spot. But if you use 50% of your capital with 10x leverage, it’s like dancing on the edge of a cliff—any pullback can directly hit your stop-loss.

My trading principle is simple: no matter how leverage is set, always keep the position in any single asset within 10% of your principal. This ratio isn’t set randomly; it’s a safety margin gradually refined through countless practical experiences. Accounts that strictly follow this rule can survive even a 20% decline. Conversely, accounts that ignore this line may be wiped out with just a 5% drop.

The difference is clear: one is a sustainable trading system, the other is a gambler’s mindset. The former requires time to verify but has a high survival rate; the latter may seem exciting but actually accelerates account death. If you’re still trading with full positions or high leverage, I suggest stopping immediately and rethinking your risk model. How long your account survives never depends on how good the market is, but on how long you can hold on during the worst conditions.