Recently, a trader shared her experience: a $5,000 account, she forcefully invested over $4,500 into a 10x leverage long position without setting a stop-loss. The market only retraced 3 points, and her account was gone.

Looking at her records, the problem is quite clear—many people misunderstand "full position." They think that holding a full position means confidently holding through the trade, but in reality, it's a double-edged sword. If not used properly, it can accelerate liquidation.

**The real cause of liquidation is not leverage itself, but position size ratio.** Using 10x leverage with 90% of funds can be wiped out with just a 5% adverse move. Conversely, with the same leverage, investing only 10% of funds requires a 50% move to be wiped out. The key difference is this concept of "scale."

In actual trading, these three rules are especially effective:

**First, do not risk more than 20% of total funds on a single trade.** This leaves room for maneuver and prevents being caught off guard by a minor retracement.

**Second, limit single-loss to within 3% of total funds.** Setting a stop-loss may seem trivial, but it is actually the baseline for long-term survival.

**Third, stay out of the market during sideways movements, and do not chase after sharp rises.** Only trade when the trend is sufficiently clear.

A friend used to blow up his account every month, but after adopting this approach, he turned $3,000 into $8,000 in three months.

To put it simply, trading tools are neither good nor bad; making money depends on whether you can manage your position sizes. The essence of position management is not about gambling for a big win, but about surviving long enough in the market.