Having navigated the crypto space for many years, I have seen too many smart traders completely exit after a leverage liquidation. Today, I won't discuss technical analysis or market trends; I just want to sincerely talk about position management — a lesson that 90% of people can never fully master.

**The Truth Behind Liquidations**

I know a guy who entered the market at the peak of the 2017 bull run, leveraging his account to grow it to 2 million, full of confidence. But during the crash in 2020, his 50x short was wiped out instantly. He later told me, "The direction was actually correct; I just added to my position too aggressively and didn't leave myself any room to breathe."

I've heard countless stories like this. Market fluctuations are unavoidable, but wiping out your account is never the market's fault — it's because you were standing on the edge of a cliff from the start. According to data, 82% of liquidation events are caused by overly concentrated positions — even if your technical analysis is correct nine out of ten times, one emotional slip-up can wipe out all your gains. Going all-in on a heavy position is essentially gambling in disguise; nine wins can't make up for one failure.

**My "Three-Stage Positioning Method"**

Surviving all these years, I rely on a simple but effective approach — the "Three-Stage Position Management." The core principle is straightforward: never let a single loss threaten your principal.

**Testing Position (≤30%): Explore First, Then Break Through**

For any trade, I start with a light position of no more than 30% of my capital. For example, if I have 100,000 in my account, I invest at most 30,000 in the first trade. This isn't about making a profit right away but about using this position to verify my judgment. If the direction is wrong, the stop loss won't hurt too much; if it's right, I can preserve my core position to continue building. Treating the initial position as a scout rather than the main force is the key to lasting longer.