Why do some people frequently get liquidated in the crypto world? To put it simply, most people lose not because of market movements, but because of their mindset.
Recently, I helped a friend turn 1200 USDT into 50,000 USDT, all without a single liquidation. This is not luck, but a method that can be followed. In the crypto space, the competition is not about how precise your technical analysis is; the real test is two words: wisdom. Wisdom is reflected in surviving long enough.
**First, learn to divide your positions—this is the first step to survival**
Everyone who goes all-in on a trade eventually becomes market "fertilizer." My approach is to split the principal into three accounts for management: The first (40%) is for intraday trading, focusing on one opportunity per day, taking profits and then exiting, avoiding greed; the second (40%) is for swing trading, possibly holding for ten days or half a month, but once you act, aim for big moves; the third (20%) is for bottom-fishing, serving as insurance—no matter how bad things get, don’t touch it.
The logic is simple: if you lose your life, what’s the point of turning things around?
**Second, learn to wait—90% of the market is noise**
Most of the time in crypto is sideways consolidation. Frequent traders are just paying platform fees. The truly smart move is to stay put. When there’s no trend, rest; once a trend is established, enter precisely. When profits exceed 20%, lock in 30%—money in your pocket is real money. Experts might only trade five or six times a year, but each trade can support two or three months of living.
**Finally, set strict rules for yourself—use systems to combat emotions**
Retail investors’ biggest enemies are their own greed and fear. You must set rules: a 2% stop-loss—sell when hit, no bargaining; a 4% take-profit—reduce position and lock in gains, don’t chase the highest point; never add to a losing position—averaging down is digging your own grave.
The essence of making money is to let your funds grow automatically under established rules, not to be dragged around by emotions.
From 1200 to 50,000, the core is this: first lock in the risk, then let the profits run. When the altcoin market heats up, only those with a plan can truly make money.
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GasFeeCrier
· 12-29 02:51
Well said, but I still think the hardest part is human nature. The seemingly simple rules are completely forgotten when the market drops.
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LiquidationOracle
· 12-29 02:48
That's right, the hardest part is the mindset. Everyone around me is like this—when a market wave comes, they go all-in, only to get wiped out.
Position sizing definitely helps, but the problem is most people can't sit still; they see a rise and want to go all-in.
That 2% stop-loss is really tough. Every time, I want to wait a bit longer, but in the end, everything is gone.
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AlwaysQuestioning
· 12-29 02:47
Is it true that 1200 has risen to 50,000? Why do I feel like it's just storytelling again?
The strategy of dividing into multiple accounts is indeed reliable, but the problem is that most people simply can't do it.
It's easy to say but hard to execute; mindset is really the biggest enemy.
Can you really stick to a 2% stop loss? When the market drops, who doesn't want to turn around and fight again?
I approve of the 20% base position; at least you can survive to see the next opportunity.
Wait, only making five or six moves a year, can you really make money? That's not quite the style of us impatient folks.
It feels like they're saying that living longer is more important than anything else. There's nothing wrong with that, but it’s a bit heart-wrenching.
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BearMarketSunriser
· 12-29 02:38
That's right, mindset is indeed the main factor, but I think what's even more brutal is... most people simply can't stick to this set of rules.
Why do some people frequently get liquidated in the crypto world? To put it simply, most people lose not because of market movements, but because of their mindset.
Recently, I helped a friend turn 1200 USDT into 50,000 USDT, all without a single liquidation. This is not luck, but a method that can be followed. In the crypto space, the competition is not about how precise your technical analysis is; the real test is two words: wisdom. Wisdom is reflected in surviving long enough.
**First, learn to divide your positions—this is the first step to survival**
Everyone who goes all-in on a trade eventually becomes market "fertilizer." My approach is to split the principal into three accounts for management: The first (40%) is for intraday trading, focusing on one opportunity per day, taking profits and then exiting, avoiding greed; the second (40%) is for swing trading, possibly holding for ten days or half a month, but once you act, aim for big moves; the third (20%) is for bottom-fishing, serving as insurance—no matter how bad things get, don’t touch it.
The logic is simple: if you lose your life, what’s the point of turning things around?
**Second, learn to wait—90% of the market is noise**
Most of the time in crypto is sideways consolidation. Frequent traders are just paying platform fees. The truly smart move is to stay put. When there’s no trend, rest; once a trend is established, enter precisely. When profits exceed 20%, lock in 30%—money in your pocket is real money. Experts might only trade five or six times a year, but each trade can support two or three months of living.
**Finally, set strict rules for yourself—use systems to combat emotions**
Retail investors’ biggest enemies are their own greed and fear. You must set rules: a 2% stop-loss—sell when hit, no bargaining; a 4% take-profit—reduce position and lock in gains, don’t chase the highest point; never add to a losing position—averaging down is digging your own grave.
The essence of making money is to let your funds grow automatically under established rules, not to be dragged around by emotions.
From 1200 to 50,000, the core is this: first lock in the risk, then let the profits run. When the altcoin market heats up, only those with a plan can truly make money.