Risk control is never about restriction; rather, it’s your key to surviving in this market.

Every day, similar tragedies unfold on exchanges. Someone uses fifty times leverage, goes all-in with a single jump, and within less than a minute, their account is wiped out. It looks like the market is crashing, but in reality, the problem lies in how their positions are set up.

Such incidents are all too common. After years of navigating the crypto market, I dare say that about 80% of liquidations are caused by traders themselves. Today, I want to share some practical experience in hopes of helping everyone avoid some pitfalls.

**Mistake 1: Confusing leverage and position size**

Many people get excited when discussing leverage, as if leverage itself is a deadly beast. But the real danger isn’t the leverage multiplier; it’s the size of the position you take.

The essence of risk lies in the combination of "position size × leverage." For mainstream coins like Bitcoin and Ethereum, I often use twentyfold leverage without issue, but I never let a single position exceed 10% of my total capital. This way, even if the coin price fluctuates by five points, it’s almost painless for the account. Conversely, some people only use five times leverage but put their entire capital into one position, and a small market correction can wipe them out instantly.

Remember this logic: high leverage requires small positions; lower leverage can be slightly larger, but overall exposure must be controllable.

**Mistake 2: Fantasizing that stop-loss lines will automatically save you**

The most heartbreaking traders are often those who are stuck in the obsession of "waiting a bit longer to break even." They don’t set a stop-loss after losing 5%, hold on until 10%, and finally watch their positions slide into the abyss.

Stop-loss isn’t about restriction; it’s a moat. True professional traders set their stop-loss levels as if setting an alarm clock—when the time comes, they exit. Emotions are worthless in the face of the market; only execution can preserve your principal.

Master these two points, and you’ll at least be able to survive a few more cycles in this market.