Many traders have fallen into this trap: account liquidation. The first reaction is to blame the leverage being too aggressive. But the truth is, leverage is just an amplifier; the real "killer" is overexposure.

A typical case: a $10,000 account with $900 used to open a 10x position, resulting in being wiped out after just a 5% pullback. Looking from another angle, a $100 position with 10x leverage requires a 50% move to be liquidated. What's the difference? The former has 95% of the capital at risk on a single bet. This is not trading; it's Russian roulette.

**Why is position size the real culprit?**

Leverage is a tool; position size determines life or death. Many believe that full position can withstand volatility and is safer, but in reality, a full position combined with high leverage is a risk a hundred times greater than isolated positions. A single misjudgment can wipe out months of gains.

**How to manage position size to avoid liquidation for half a year?**

Traders who last long follow three iron rules:

Rule 1: Single position ≤ 20% of total funds. For a $10,000 account, use no more than $2,000 per trade. Even if the judgment is wrong, a 10% stop loss only loses $200, leaving enough room for maneuver.

Rule 2: Limit single loss to ≤ 3% of total position. When using 10x leverage with $2,000, pre-set a stop-loss point to ensure losses do not exceed $300. Even with consecutive wrong calls, it won't cause serious damage.

Rule 3: Stay out during sideways markets; take profits and exit. Avoid participating in choppy conditions, only trade in clear trends, and take profits at target levels, abandoning the temptation to add positions.

A friend used to blow up his account every month. After following these three rules for three months, his $5,000 account grew to $8,000. He said something very insightful: "I used to think this was a gamble; now I realize it’s a life-saving charm."

The rules of the crypto game are simple—only those who survive can profit. Don’t compete to see who rushes the hardest; compete to see who loses the slowest. Three wrong guesses on direction are okay, but one mistake in position management means the end. Steady position management is the true shortcut to wealth.