At 3 a.m., a friend in Hangzhou called with a very urgent voice: "Bro, it's over. I went all-in with 10,000 yuan at 20x leverage, and just a 5% dip wiped out my account."

I looked through his position records—full position with 20x leverage, no stop-loss set. This kind of situation is quite common in the crypto market, but the problem isn't the leverage itself.

Many people misunderstand one point. They think that full-position trading can withstand market fluctuations, but in fact, the opposite is true—improper full-position operation can lead to faster liquidation than incremental positions. The real risk source is having too large a position.

Here's an example to make it clear. An account with 1,000 yuan, using 900 yuan to open a 10x leverage position, a 5% adverse move directly results in zero. Alternatively, with the same 1,000 yuan account, using only 100 yuan to open a 10x leverage position, it would take a 50% move to be liquidated. My friend is the type to put 95% of his principal at risk, and a small market adjustment gets him forced to close.

I've been operating full positions for over half a year, never once got liquidated, and even doubled my capital. I've summarized three core principles:

**First: Do not invest more than 20% of your total funds in a single trade.** For a 10,000 yuan account, invest at most 2,000 yuan at once. Even with a 10% stop-loss, that’s only a 200 yuan loss. The risk resistance is completely different.

**Second: Limit single-loss to within 3% of the total position.** Set your stop-loss in advance, don’t wait for the market to teach you a lesson. This is a hard rule to protect your principal.

**Third: Don’t open new positions recklessly in volatile markets.** Don’t chase after profits by buying high; instead, look for breakout opportunities. This can greatly reduce ineffective trades.

The true meaning of full-position trading is to leave enough room for error, not gambling. I had a follower who kept getting liquidated every month, but after strictly following these principles, his 5,000 yuan turned into 80,000 yuan in three months.

In the crypto market, survival depends not on making quick profits, but on lasting longer. Don’t focus too much on precisely predicting market direction; instead, focus on position management. Slow is fast—that’s the truth.