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I was woken up by a phone call in the early morning, and the girl on the other side was trembling as she spoke.
"My account has been wiped out, 6000U is gone..."
She was holding a full position with over 5x leverage, and a 3% pullback wiped her out completely. Looking at the trading screenshot she sent, she had all-in with 5800U, with no stop-loss set.
This kind of approach isn't trading; it's suicide.
Many people think that using full position and leverage can quickly turn things around. Wrong. It's like tying your life to the K-line; if the market jitters even slightly, you're done.
The real reason for liquidation isn't high leverage; it's heavy positions.
Let me do some math for you:
With 800U principal, using 750U to open a 5x position, a 6% opposite move will trigger liquidation. But if you only use 75U to open 5x, it would take an 86.7% move to lose everything. Your risk resistance drops by a factor of 12.
She invested 96.7% of her principal. Under 5x leverage, this small pullback was impossible to withstand.
Having made mistakes myself over the past year, I’ve summarized three life-saving rules. After applying this method, my account grew by 80%, and I’ve never been liquidated again.
**First: Use no more than 7% of your principal per trade.**
For a 6000U account, this means a maximum of 420U per trade. Even if you hit stop-loss, you only lose about 29.4U, which won’t hurt your core.
**Second: Limit single-loss to within 1.1%.**
Using 420U at 5x leverage, with a 1% stop-loss, you only lose 8.4U. Cut your losses promptly; don’t hold on stubbornly.
**Third: If you don’t understand, stay out of the market.**
Don’t chase the highs. Wait for the daily chart to break key levels and volume to confirm before entering.
A friend of mine used this approach and went from 3,200U to 55,000U in four months, despite monthly liquidation before. He said, “I used to gamble everything on full positions, but now I understand—staying alive is more important than anything.”
Futures trading isn’t a casino; it’s a battlefield. Those without discipline will be forced out sooner or later. Only those who stick to the rules can earn steadily.