A person who truly understands trading never boasts about themselves and never makes mistakes. What's the difference? They know how to admit mistakes like an adult, rather than fooling themselves.

I've been writing articles for many years, repeatedly emphasizing one point: surviving in the crypto market itself is a victory. The dream of getting rich quickly sounds sexy, but the reality is often a margin call. I've seen too many people who pick the right coins and buy at the right time, yet stubbornly refuse to let go. When the market starts to decline, their first reaction isn't to cut losses in time, but to come up with reasons: "Hold on a bit longer, a small rebound will come out."

The usual pattern is like this: a small rebound indeed occurs on the first day, but they can't bring themselves to sell, and on the second day, they get even more trapped. A single-digit decline can be endured, but once it reaches double digits, anxiety sets in. When it drops by twenty or thirty points, the profits in the account have long disappeared, and even the cost basis is locked in. This is not a market problem; it's the complete collapse of the entire trading logic.

High leverage is not an amplifier; it's a meat grinder. Looking at historical data makes this clear. In October last year, when Bitcoin's daily volatility exceeded 10%, 100,000 traders were liquidated simultaneously, with total liquidations reaching $360 million. There was an even more violent crash, with 140,000 forced liquidations, totaling $363 million, most of which were long positions.

Why is the scale so terrifying? High leverage. Some exchanges allow up to 125x leverage, which means a 1% market fluctuation could double your account or wipe it out completely. Leverage amplifies both gains and risks. When the market direction reverses, the nightmare of liquidation is right in front of you.

There's an old financial adage called the "Crocodile Rule": imagine a crocodile biting your foot. The harder you struggle, the more parts you lose. The only way to survive is to immediately let go of that foot. This brutal metaphor applies equally to traders. Sometimes, admitting defeat in time is the real victory.