Woken up by news in the early morning, the screen popped up with a flurry of distress signals from Shenzhen — the tone was almost explosive:

"I had 12,000 in my account, and I went all in with a 3x short position, and then it just went up by 4 points? All my money evaporated, what kind of operation is this..."

Opening his trading details, I was overwhelmed. He put all 12,000 dollars in, stop-loss line? Nonexistent. This kind of strategy is like tightrope walking naked, how can he not fall?

Many newcomers think that "fully invested means strong resistance to volatility"—wake up! Being fully invested is like driving without stepping on the brakes; as soon as the road conditions change slightly, you can end up in a ditch faster than being liquidated one position at a time.

**The pot of liquidation does not bear the leverage.**

The real root of the problem is having too much leverage. For example, if you have $10,000 in principal and you use $8,000 to open a 3x leverage position, if the market moves against you by 3.5%, it's Game Over. But what if you only use $1,000 to open 3x leverage? Even if the market swings 25%, your principal remains safe and sound. If Linlin puts all their assets on the line with 3x leverage, that small increase simply can't hold up.

However, speaking of which, going all in is not poison. After exploring for half a year, I have summarized three iron rules—my account not only hasn't exploded but has been climbing all the way up. Later, I shared this set of insights with Lin Lin:

**Rule 1: A single transaction can consume up to 8% of the principal.**
For example, if you have 12,000 dollars, you can invest a maximum of 960 dollars at a time. Even if you hit a stop loss, it will only hurt a bit, and it won't be a serious injury.

**Article 2: A single loss is capped at 1.5%.**
Taking 960 dollars with 3x leverage and setting a 1% stop loss in advance, the maximum loss would be 28.8 dollars—only 0.24% of the total capital, which is completely manageable.

**Article 3: Fluctuating Market? Stay Still.**
When the market has no direction, don't even touch this thing with a full position. Wait for the weekly chart to give a clear signal before making a move, and don't be fooled into adding to your position by short-term fluctuations.

There was a student named Xiao Zhen who could empty her account every month. After following these three rules for two months, her $6,000 account gradually grew to $7,800.

Later, he told me something that left a deep impression on me:
"I used to think that going all-in was a big gamble, but now I understand - maintaining the principal is the prerequisite for making money."

In trading, where are there so many "unexpected liquidations"?

It’s just that the rules weren’t followed. Using the entire position isn't out of the question; the key is to treat it as a tool, not a gambling table. Stick to the principles, lock in the risks, and only then can you sleep well while making money.

I've had enough of the days spent groping in the dark. Now this lamp is in my hand, shining.

Are you coming or not?