Receiving an urgent voice message from a friend at 3 a.m., the first words were frantic: "I opened a 20x position with 10,000 yuan, only retraced 5%, and my account is gone. Is this normal?"

I checked his trading records, and the problem was obvious—almost all in on one position, no stop-loss set.

Stories like this are common in the crypto world. A common misconception is that full position size can withstand risks. In reality, it's the opposite—full positions only lead to faster ruin.

Why are full positions so prone to explosion? Many blame leverage, but the real culprit is position sizing.

For example: You have 1,000 U in your account, and you use 900 U to open a 10x leverage position. If the market moves 5% against you? You’re basically wiped out. But if you only use 100 U to open the same 10x position, it takes a 50% move against you to get liquidated. That’s the difference position size makes.

My friend’s fatal flaw was one thing: his position was too heavy, so when the market moved, he had no way out.

He managed to avoid liquidation for half a year and doubled his account by following three strict rules.

**First: Keep each position within 20% of total funds.**

For example, with a 100,000 U account, never risk more than 20,000 U at once. Even if you make a wrong call and stop out at 10%, it’s just a small wound. Losing 2,000 U, the account can still operate.

**Second: Never lose more than 3% of total funds on a single trade.**

With a 20,000 U position, set the stop-loss at 1.5%, risking 300 U per trade. Even after several consecutive losses, he’s still in good shape and can continue trading.

**Third: Don’t enter without a clear trend, and don’t add to positions when in profit.**

Only trade breakouts and only take clear opportunities. Even in choppy markets, patience is key. Emotional trading leads to losses; discipline is the real capital.

So when can full positions be used?

The answer is straightforward: light positions for trial and error, combined with strict risk control. Leave room for market volatility instead of risking your entire wealth.

A follower used to blow up his account every month, but after adopting this approach, starting with a small 5,000 U account, he doubled it to 80,000 U in three months. He told me something I’ve kept in mind:

"Before, full positions were a gamble for my life. Now I realize, full positions are actually for more stable living."

In the crypto world, the competition is never about who makes money fastest, but who can survive the longest. Spend less time guessing market directions, and more effort managing your positions. Sometimes, slow is faster.