Late at night on the weekend, a fren who has been trading for three years suddenly called, his voice trembling: "Bro, just now twenty thousand bucks evaporated in five minutes..." After asking more, I found out that he had thrown all 18000U in his account into a 20x leverage position, and the market only fluctuated in the reverse by 2 points, leading to his account being liquidated.

After hanging up the phone, I was thinking that many people have a fatal misunderstanding of the full-margin model - thinking that full-margin means strong risk resistance, but in reality, using it incorrectly can lead to the fastest demise.

**Why does the full position explode so quickly? The key is not in the leverage multiple.**

Assuming you have 5000U:

- Invest 4500U with 20x leverage, price fluctuates 3%, account goes to zero
- But if you only invest 500U with 20x leverage, it would require a 40% fluctuation to get liquidated.

The problem with my fren lies here - putting 90% of the principal into a single trade; even if the leverage is not high, a slight pullback can wipe it all out. The position is too heavy, leaving no chance to catch a breath.

**My own trading strategy hasn't blown up for half a year and has more than doubled**

**Rule 1: Maximum 15% of principal per transaction**

For example, an account with 20,000 U can invest a maximum of 3,000 U at a time. Even if the judgment is wrong, an 8% stop-loss means losing 240 U, but the principal is still there, allowing for a comeback at any time.

**Rule 2: Control single loss within 2% of total funds**

For example, if I open a position of 3000U with 20x leverage, I will set a 1% stop loss in advance, triggering a maximum loss of 400U, which is exactly 2% of the total funds. Even if I get it wrong several times in a row, it won’t hurt too much, and my mindset won’t break.

**Rule 3: Don't act when the market is sideways, don't increase your position when in profit**

Only engage in breakout trends that are clearly defined; I won't touch it even if the market looks tempting during range fluctuations. After opening a position, I will never add to my position to avoid emotional trading that could trap me.

**The real purpose of full margin: a buffer, not a gambling tool**

The original intention of full-position design is to leave room for error in price fluctuations, but the premise must be light-position trial and strict risk control. There was a reader who had a margin call every month, but later strictly followed these three points and rolled from 3000U to 5800U in three months. He told me: "I used to treat full-position as a gambling tool, but now I understand that full-position is for living more steadily."

In this market, it's not about who makes money quickly, but who can survive until the end. Bet less on direction, manage positions more, and slow is truly fast.