Why did Bitcoin rise big today? Three reasons.

Why did Bitcoin rise sharply today? Three reasons:
1️⃣ The Japanese listed company Metaplanet has bought another 330 Bitcoins, spending 28 million dollars, and institutions are still hoarding!
2️⃣ The S&P 500 in the US stock market rose before the market opened, driving the coin circle to get excited together.
3️⃣ Bitcoin ETF saw a net inflow of 106 million USD yesterday, with new capital entering the market.
In simple terms: institutions buying, US stocks leading the trend, and ETF capital returning, these three waves are boosting Bitcoin to take off!
You think the liquidation is due to a sudden market change? Wrong! It was you who pressed the "self-destruct button". After reading this article, you will realize that all your past actions were actively seeking death.
1. Leverage is not the killer, position is.
Fatal misconception: "100x leverage = high risk"
Truth: 100x leverage + 1% position = actual risk = 1x leverage full position
Case: A professional trader uses 50x leverage, but the position size per trade is ≤0.5%, and has not experienced a liquidation for 3 consecutive years, with an annualized return exceeding 300%.
2. Stop-loss is not a surrender, but a 'revival armor'.
In the 2024 plunge on May 19, the common point among 83% of the liquidated accounts: holding on despite losses exceeding 10%.
Single loss ≤ 1% of principal (institutional standard), equivalent to equipping the account with a "blast shield".
3. Profit without increasing position = working for nothing
Mistaken operation: ran away after making a profit, resulting in missing a 10x market.
Correct strategy:
First position 5% (trial and error)
Every time you profit 10%, use 20% of the profit to increase your position (compound interest snowball).
Case: In the SOL market of 2024, a principal of 50,000 rolled to 500,000 in just 2 months.
Institutional-level risk control model (internal outflow of private equity)
1. Dynamic Position Calculation Formula
Maximum position = (Principal × 1%) / (Stop loss range × Leverage multiple)
Example: 100,000 principal, 1% stop loss, 20x leverage → Maximum position = 1,000 yuan
2. Three-Step Take Profit Method (Maximizing Profits)
① Profit 15% → Close position 30% (lock in profit)
② Profit 30% → Rebalance 30% (reduce risk)
③ Remaining position → Move to take profit (exit when it breaks the 4-hour EMA)
3. Hedging Insurance Strategy
Use 0.5% of the principal to buy Put options when holding positions (extreme market conditions can recover 50% of the losses)
April 2024 black swan, this strategy helped a certain big player avoid a 2 million liquidation.
The 3 behaviors with the highest probability of liquidation (Have you fallen for them?)
"Hold on a little longer" type → Holding a position for 4 hours, liquidation probability skyrockets to 92%
"Frequent operation" type → Monthly average trading 100 times, fees eat away 20% of the principal
"Want to earn more" type → 83% of accounts lose profits due to greed.
The essence of trading: a mathematical game, not gambling.
Profit formula:
Expected value = (Win rate × Average profit) - (Loss rate × Average loss)
If you can do it:
Stop loss 1%, take profit 10%
A win rate of only 25% can achieve stable profits.
Professional Trader Secrets:
Single loss ≤ 1%
Annual transactions ≤ 15 times (waiting for a big opportunity)
Profit and loss ratio ≥ 5:1
Ultimate Survival Rule
Each loss ≤ 1% (absolute red line)
70% time in cash (patiently waiting for opportunities)
Only engage in high risk-reward ratio trades (missing out is not regrettable)
The market does not reward diligent people, but rather those who know how to wait. Establish a mechanical trading system to let rules replace emotions, and only then can you truly break free from the curse of liquidation! #BTC