I was awakened in the early morning by a phone call. On the other end of the screen, my brother from Jiangxi was trembling: "Bro, the account has been cleared... Sixty thousand dollars, the money prepared for the wedding, it's all gone."

I asked him how he operated. #ETH走势分析 he sent a screenshot: 58000U all-in on one side, 5x leverage maxed out, stop loss? Not set. Just because the market pulled back three points, the account went straight to zero.

This reminds me of the pit I fell into last year. At that time, I also thought that the higher the capital utilization rate, the better, and just going all in would be enough. Later, I realized that the reason for liquidation isn't actually the leverage ratio—what truly matters is how much principal you dare to throw in. $SOL
You can see it clearly by calculating the numbers:
With an account of 800U, if you use 750U to open a 5x long position and the market reverses by 6%, you would exit.
But what if you only use 75U with the same leverage? The account would have to withstand a drastic fluctuation of 86.7% to explode. The risk tolerance is directly several times worse.

That brother just invested 96.7% of his principal. With five times leverage, let alone a major pullback, even a normal washout could leave him with nothing.

This year I have also been exploring, and later summarized three rules for survival. They are not profound theories, just hard-earned experiences.

**Single investment limited to 7% of total funds**
Assuming the account has 6000U, the maximum single transaction is 420U. Even if a 7% stop loss is triggered, the loss would only be a little over 29, which won't be a significant blow.

**Each loss is limited to within 1.1% of total funds**
For example, opening 420U with 5x leverage, set a stop-loss at 1% in advance. If it really triggers, the actual loss is only 8.4U, accounting for 1.1% of the total funds. Cut it if you need to, don’t be reluctant.

**If you can't understand the market, go flat**
Not every profit requires increasing the stake, and not every day requires opening a position. It's not too late to enter the market when the trend becomes clear—such as when the daily line breaks through a key level and the trading volume follows.

I had a friend who had a margin call every month for several months. After using this approach, he went from 3200U to 55,000 in four months. He told me: "I used to think that being fully invested was about pushing hard, but now I understand that the real reason for being fully invested is to survive longer."

The market is always there, but if the principal is gone, everything goes to zero.