2026-01-04 22:20:28

Trading cryptocurrencies, the biggest fear isn't misreading the market, but making one mistake and losing the chance to turn things around. I've seen too many people blow up their accounts because they used full position sizing, and in the end, could only leave with regret.

Real trading experts follow a strict rule: never risk more than 20% of your total funds on a single trade. It sounds simple, but this threshold can keep most people out. Why? Because of greed.

For example, with a $10,000 account. Strictly following the 20% rule, only $2,000 is risked per trade. Even if you make a wrong call and set a 10% stop-loss, the loss is only $200, which is just 2% of the total funds. This loss is hardly painful. The key is you still hold $8,000 in reserve, giving you a chance to catch the next wave. No matter how BTC or ETH moves, you're not afraid because you've left enough ammunition.

Compare that to full-position traders. Investing the entire $10,000 with 100% leverage. As soon as the market moves against them, they have no funds to add to their position, no chance to set a stop-loss, and can only watch their account blow up. Going from full position to liquidation often happens overnight.

The difference lies in whether you've left yourself a way out. No one in the crypto world can predict the market 100%, not even the experts. Managing your position size is about paying for mistakes and keeping the possibility of a rebound for your principal. This isn't conservatism; it's the wisdom to survive longer.

BTC-2,35%

ETH-3,5%

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JustHereForAirdrops

· 01-07 05:21

It's the 20% rule again. It's true, but how many can really stick to it? I am a cautionary example myself—full position for a moment of excitement, then liquidation and burn.

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gaslight_gasfeez

· 01-07 03:33

That's right, but I think those who are fully committed are actually just gamblers at heart, feeling like they can only sleep peacefully if they go all in.

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DaoDeveloper

· 01-06 14:54

the 20% rule hits different when you actually see the math play out. like, position sizing isn't just risk management—it's literally your governance mechanism for capital allocation. think of it like merkle trees for your portfolio; each branch can fail independently without collapsing the whole structure.

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MEVHunter_9000

· 01-04 22:49

That's true, but some people just can't quit going all-in. I've seen too many rookie-level players who only realize what risk control is after liquidation. The 20% rule looks simple, but when it comes to actual operation, the greedy devil comes out.

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MercilessHalal

· 01-04 22:49

That's true, but I've seen too many people who understand this principle still go all-in. Greed really can be deadly.

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MetaMaskVictim

· 01-04 22:36

That's so true. The guy I know was completely wiped out with full leverage, and he's still regretting it.

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RetiredMiner

· 01-04 22:29

When full-position players get liquidated in the middle of the night, I’m just having a late-night snack. Really, I’ve seen it too many times.

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not_your_keys

· 01-04 22:28

You're really harsh. Those who go all-in deserve it. Greed is something that can't be cured.

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NoStopLossNut

· 01-04 22:22

There's nothing wrong with that. Going all-in on this thing is just gambler's mentality; sooner or later, it'll go back to the way it was before liberation. I’ve seen a buddy go all-in on BTC, losing 80% in two days. He's still lurking in the group now, too embarrassed to speak up.

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