$ETH Last night I received a voice message from a friend, sounding extremely anxious: "Bro, I used 10,000 USDT to open a 50x leverage long position. It only dropped 3%, and I got completely wiped out. My account is zeroed out. How is this possible?" When I checked his position record, I was stunned—he threw in 9,500 USDT without leaving a single cent for stop-loss. Honestly, many people think that full position size shows courage, but in reality, that’s exactly the most prone-to-ruin move. People who truly know how to make money never play like that.

In fact, the problem with full liquidation isn’t the leverage multiplier itself, but rather the excessive proportion of the position size. To give a concrete example: with a 1,000 USDT account, if you open a 10x leverage position with 900 USDT, a 5% adverse move is enough to wipe out your principal; but if you use only 100 USDT at 10x, you’d need a 50% drop to be forcibly liquidated. My friend put 95% of his entire capital into one position—so even with just 10x leverage, a slight market pullback would clear him out. This kind of approach, frankly, is gambling with your principal.

Based on my practical experience, I’ve summarized three position management rules. Using this system, I haven’t had a liquidation in half a year, and my funds have doubled.

**First, never allocate more than 20% of your account funds to a single position.** For a 10,000 USDT account, don’t exceed 2,000 USDT per trade. Even if that trade loses 10%, you only lose 200 USDT, leaving enough capital to recover. What’s the benefit? Steady mindset, good sleep, no panic even in volatile markets.

**Second, set your stop-loss within 3% of your total position.** For example, if you invest 2,000 USDT, set your stop-loss at 1.5%. If you lose 300 USDT, cut it decisively. This number may seem small, but even if you hit multiple stop-losses in a row, your losses are limited and won’t damage your foundation. You can endure several losses without breaking.

**Third, avoid trading in choppy markets; take profits quickly and don’t be greedy.** Only enter trades with clear breakout signals. Resist the temptation of sideways consolidation. Once you open a position, stick to your stop-loss and take-profit levels—never chase after prices. Completely separate your emotions from trading.

Ultimately, true full position size should be a risk buffer, not a gambling tool. Its purpose is to allow room for market fluctuations, not to bet your entire life savings on one shot. Combining small positions with strict risk control is the right path to stable profits.

I have a follower who used to get wiped out month after month, but after following this logic, his account grew from 5,000 USDT to 8,000 USDT in three months. He told me something that left a deep impression: "I used to think full position size was just gambling my life, but now I realize, full size is actually about surviving longer." For those still blindly going all-in without a proper stop-loss plan, don’t joke around with your own principal.