In the early hours, a frantic message came in. A trader from Zhejiang was trembling as he reported: His account blew up, with $20,000 US full position at 10x leverage—just a 3% drop wiped out everything, leaving nothing behind.

I pulled up his trading record—$19,500 US fully invested, with no stop-loss set. This is not an isolated case. Every day, the market plays out the same story: full position, leverage, liquidation.

Many people's logic is like this: It's their own money anyway, so go all in and gamble. If they lose, they can just double up and make it back. It sounds righteous, but in reality, it's the most dangerous self-deception. Going all in is like an ice pick—seemingly sharp and powerful, but the easiest to shatter in your hand.

**The real culprit of liquidation isn't leverage, but heavy position sizing**

Looking at the data from another angle makes it clear. Suppose an account has $1,000:

Using $900 to open a 10x leverage position, a 5% move against you would wipe out the account.

But if only $100 is used to open the same 10x leverage position, it takes a 50% move against you to reach the liquidation point.

Both trades use 10x leverage, but the difference is in that small $900 versus $100. That Zhejiang guy bet 95% of his principal. Under the magnification of 10x leverage, even a tiny move feels like a knife stabbing your heart.

**Three rules for doubling your account in half a year**

I later summarized three operational principles. They may sound unremarkable, but after half a year of following them, my account not only never blew up but also steadily grew:

**Rule 1: No single trade exceeds 20% of total funds**

For a $10,000 account, never risk more than $2,000 on a single trade. Even if that trade hits a 10% stop-loss, the loss is only $200. Relative to the total, it's a negligible wound. As long as the account stays alive, there’s a next opportunity.

**Rule 2: Absolute loss per trade does not exceed 3%**

For a $2,000 position with 10x leverage, set a stop-loss at 1.5%. The worst-case loss is $300, which is 3% of total funds. The math is simple, but disciplined execution is required.

**Rule 3: Don’t trade in sideways markets; don’t add to positions when in profit**

This is the toughest test of human nature. During sideways movement, it's easy to be overwhelmed by emotions, thinking "This move will definitely go." When in profit, the temptation is "Add more to earn even more." The result is often taking action at the worst moment, giving back all the profits.

Only trade when there's a clear trend; use patience instead of risking impulsive moves. That’s the secret to lasting longer.

**From monthly blow-ups to steady growth**

There’s a trader who learned this method from me. She used to be a frequent victim of monthly blow-ups. In three months, she turned a $5,000 account into $8,000. Her later words were: "I used to think full position was a big move, but now I realize that light positions are the way to survive long-term."

Those who survive the next bull market after this bear are never the ones who trade most aggressively, but those who trade most steadily. Opportunities will always come, but your account must stay alive to seize them.

This market is never short of stories; what’s missing are people willing to listen.