After experiencing 18 falls and losing 300,000 USDT in the futures market, I finally see through a harsh truth — liquidation is never the market’s fault, but a time bomb you personally set.

Many treat futures trading as a gamble for life, but in reality, it’s just mathematics. The accounts that don’t last long always die from the same cause: a misunderstanding of leverage’s essence.

**How dangerous is leverage? You’ll regret not seeing this number**

100x leverage sounds terrifying, but if you only invest 1% of your capital, the actual risk is even less than full position in spot trading. The formula is simple: real risk = leverage multiple × position ratio. A student I mentored used 20x leverage on ETH, only risking 3% of his capital each time. He operated this way for four years without a single liquidation. Compared to those using 5x leverage and risking 50% of their capital, the results are worlds apart.

**Why, during the 2024 3/12 crash, 82% of liquidated accounts failed due to the same mistake**

Losing 6% and stubbornly holding on — that’s a fatal flaw. Experienced traders have a strict rule: single-loss should never exceed 3% of the principal, treating this as the “electric shock switch” for the account. It’s not conservatism; it’s the key to surviving longer.

**Adding positions is not all-in, it’s disciplined compound interest**

The laddered position-building method works like this: invest 10% initially to test the waters, then add 15% of the profits earned to the position. For example, with a 50,000 USD capital, the first step is to invest 5,000 USD (10x leverage). Every 10% profit, add 750 USD. Last year, when BTC rose from 70,000 to 84,000, some used this approach to increase their safety margin by 40%.

Behind this is a risk control formula used by institutions: total position ≤ ( principal × 3%) ÷ ( stop-loss percentage × leverage ). Using the 50,000 USD example, with a 3% stop-loss and 10x leverage, the final available capital is 7,500 USD. It may not seem much, but this calculation greatly improves account survival compared to random position increases.

**Profit-taking also has a strategy — the three-step method can turn 50,000 into 1,100,000**

Take profit at 20%, close one-third; at 50%, close another third; if the remaining position falls below the 5-day moving average, exit entirely. During last year’s halving rally, some used this method to turn 50,000 into 1,100,000. This is not luck; it’s discipline.

**Two deadly traps to avoid at all costs**

Holding a position for over 3 hours increases the liquidation probability to 94%. Making over 300 trades a month results in a 28% loss of principal. Frequent trading and frozen positions are killers for accounts — no exceptions.

Ultimately, the survival rule in the futures market boils down to four words: control losses, wait for the trend. Using 3% risk to capture trend dividends, letting discipline replace emotion, is the only way to truly survive in this game.