The Truth About Account Liquidation: 90% of Traders Lose Not Because of Wrong Trends, but Because of Losing Control of Positions

In the crypto market, I have witnessed too many tragedies repeating themselves. An account with just a few thousand or tens of thousands of dollars, but the way they enter trades is as if holding the entire fortune. When prices inch up slightly, they dream of financial freedom; when prices dip, their hearts race, hands trembling as they cut losses. That’s not trading – that’s disguised gambling. I used to be like that. Making money quickly, but losing even faster. Many times I guessed the trend correctly, but still burned through my account for a single reason: positions too large relative to the account’s capacity and psychological resilience. After years of paying tuition with real money, I’ve drawn a simple but brutal conclusion: In crypto, the survivor is not the smartest, but the one who manages risk the best. I. Going All-In and Heavy Positions: The Shortest Path to Bankruptcy The market doesn’t hate you, but it always punishes greed. One of the most common reasons for account blow-ups is risking more than 20–30% of total capital on a single trade. At that point, you’re no longer trading according to a plan, but letting emotions drive. Many newcomers have a dangerous illusion: Trading constantlyEvery candle is an “opportunity”Not entering a trade is “missing out” What are the results? ➡️ Increased trading frequency ➡️ Higher fees ➡️ More mistakes ➡️ Reduced account balance Moreover, trading while tired is disastrous. When the brain is overloaded, it will choose the “shortcut” – and in trading, shortcuts often lead straight to wrong decisions. Currently, I consider sleep and mental state as mandatory conditions. 👉 Tired – no trading. 👉 Loss of focus – no trading. 👉 Strong emotions – no trading. II. How I Make Profits Grow Over Time My turning point didn’t come from sophisticated indicators, but from a very simple position control system.

1. Test Orders (Probe Trade) Always Come First Any trading idea starts with a test position, not exceeding 5% of total capital. If the market confirms I’m right → I increase the position. If the market invalidates → I retreat with minimal loss.
2. Leverage Is a Double-Edged Sword Maximum leverage I use: 5xFor highly volatile altcoins: the lower, the better When volatility increases, I reduce position size, not increase. The goal is to keep risk level constant, not to maximize emotions.
3. Multi-Layer Stop-Loss System I don’t use a fixed stop-loss for all situations. Instead: Stop-loss based on technical levelsDynamic stop-loss according to trendStop-loss based on time (staying sideways too long) This is a multi-layered defense system, not just setting one point and praying.
4. The Most Important Discipline: Take Profits and Withdraw Capital Crypto is not a place to show off profits. 👉 Double → withdraw capital 👉 Let the market reward your profits Anyone who has survived long enough understands: The market doesn’t reward greed; it only lends you profits if you know when to withdraw. III. The Art of Position Management: Not Conservative, But Flexible Managing positions doesn’t mean being timid; it means adjusting according to market volatility. The “3-4-3” Method I Often Use When identifying a medium-term trade: 30% of capital at the initial entryPrice moves in the right direction → add 40%Adjust or retest → add the final 30% This approach helps me: Avoid all-in at one pointHave room to correct mistakesNot be driven by emotions Trading with the Major Trend Uptrends are always easier than sideways markets. In an uptrend: Strong corrections of 10–20% are often opportunitiesNo FOMO at the topNo increasing positions in euphoria zones And a very important mindset: Altcoins are created to help you accumulate Bitcoin, not to love them long-term. IV. Survival Is More Important Than Anything On-chain data shows: Wallets holding Bitcoin for over 3 years have a profit rate of over 95%They are not the best traders, but the best at enduring Successful trading is not about: One big winning tradeOne PnL brag But about: Avoiding major mistakesPreserving capital Trading aggressively when the odds are clearly in your favor A simple but effective formula: Each loss ≤ 5% of total capitalEach profit ≥ 5% of total capitalWinning rate > 50% 👉 Long-term, profits are guaranteed. V. Honest Words from Someone Who Has Paid the Price The crypto market is not short of opportunities; what’s lacking is people disciplined enough to seize them. Some say my trading style is “too safe.” I don’t argue. Because I know: this stability is bought with real money, real mistakes, and many sleepless nights. I can: Stay out of the market for days when there’s no signalBut when the time comes, I am alert and have enough capital to ride the wave. Most traders don’t die because of the market, but because of: EmotionsIllusionsQuick wealth fantasies If you want to go the long haul: Don’t open random positionsDon’t chase the bottomDon’t gamble with your capital Opportunities always exist, but only the survivors can seize them. 👉 In crypto, the most valuable thing is not a big win, but the ability to survive and earn steadily. Position management is your armor. And it’s also the advantage that helps you surpass 90% of other traders.