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How to break the full position liquidation? Many people blame leverage, but the real issue lies in having too heavy a position.
Taking a $1000 account as an example: opening with $900 at 10x leverage, a mere 5-point move against the position will wipe it out. But think differently—using $100 at 10x leverage requires a 50-point move to be liquidated—there's a completely different margin of error.
I once had a friend who put all his principal into a position. When the market moved slightly, his account was wiped out instantly. In contrast, I used full positions for half a year, and not only did I avoid liquidation once, but I also doubled my funds. What's the difference? It all comes down to these three iron rules.
**First: Never risk more than 20% of total funds on a single position**
For a $10,000 account, never invest more than $2,000 in one trade. Even if you get the direction wrong and set a 10-point stop loss, you'll only lose $200, which won't damage your account’s vitality. You can quickly re-enter the market. The key is to stay active and avoid gambling everything away in one shot.
**Second: Limit single-loss to 3% of total funds**
For example, with a $2,000 account at 10x leverage, set a stop loss at 1.5%, risking a maximum of $30, which is 3% of your total funds. Even if you make a few wrong judgments in a row, your account still has strength to continue. This way, even if the market gives you three or four slaps, you can still stand up and keep going.
**Third: Do not open new positions during consolidation, and do not add to winning trades**
Only trade on trend breakouts. No matter how tempting sideways markets are, just watch and wait. After opening a position, don’t chase the rise or add to a falling position. Stick strictly to take profit and stop loss, and don’t let emotions hijack your funds.
These three rules may seem simple, but their true power lies in—turning full positions from "gambling" into "careful planning." The purpose of a full position is not to go all-in, but to give yourself enough room for trial and error.
I have a follower who used to blow up his account every month. After following this logic for three months, he managed to grow his $2,600 account to $100,000. Steadily and surely, it increased fortyfold in one quarter.
The principle is simple: don’t think about getting rich overnight. Focus on solid risk management. Long-term compound growth is the real way to succeed.