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Recently, a heartbreaking piece of news emerged. An investor, due to excessive confidence, invested all their funds into a certain mainstream encryption currency and used 5x leverage, ultimately facing a full liquidation because they did not set a stop-loss. Such situations are not uncommon in the encryption currency market, where many newbie investors often view "full position trading" as the secret to quick profits, while neglecting the enormous risks involved.
In fact, based on extensive historical data analysis, an operating strategy of 95% principal fully invested with 5 times leverage will lead to liquidation with just a 6.3% reverse market fluctuation. In contrast, if only 12% of the principal is used for operations, even with the same 5 times leverage, an 88% reverse market fluctuation is required to result in total loss. The difference in risk resistance capability between these two strategies exceeds ten times.
In order to achieve steady profits in the highly volatile encryption currency market, experienced traders have summarized the "Three Iron Rules of Light Position Winning":
1. Control single position size: The funds for each trade should not exceed 7% of the total capital. This way, even in the event of a loss, it will not deal a fatal blow to the overall capital.
2. Strict Stop Loss Setting: Control the single stop loss ratio within 1.1%. This helps maintain a good mindset and avoid subsequent judgments being affected by a significant loss.
3. Be cautious in choosing the entry timing: Maintain a wait-and-see attitude when the market is unclear. Waiting for confirmed trend signals to appear before taking action can significantly increase the probability of profit.
After following these principles, an investor grew their account from 2800 USDT to 4900 USDT in four months, an increase of over 63%. The investor realized: "Previously, operating with a full position felt like gambling with my life; now I understand that in the encryption market, 'stability and consistency' is more important than 'quick profits.'"
For most investors who find themselves in trading difficulties, the problem is not a lack of effort, but rather a lack of proper guidance. In this market filled with opportunities and risks, only by following the right strategies and experienced mentors can one truly achieve steady profits. Remember, the market always exists, but opportunities are fleeting; the key is how to find a balance between risk and reward.