3 Rules to Help Leveraged Traders Escape the Cycle of “Profits Gone – Deep Losses – Sleepless Nights”

In leveraged trading, most losses don’t come from the market itself, but from the trader’s own habits of “greed – fear – hesitation.” The three rules below won’t make anyone rich overnight, but they can help many people avoid account-wiping crashes and keep a lot of their capital.

  1. Unrealized Profit = Someone Else’s Profit Many traders, when in profit, often fall into an illusion: 10% profit feels not enough 20% profit brings dreams of doubling the account Then, with just one correction, profits evaporate completely, sometimes even turning into losses

In leveraged trading, the correct principle should be: → At 10% profit, start being cautious – if the price drops 3% below your entry, close immediately. Don’t debate “long-term – value.” Leveraged trading is not investing. It’s a speed game; whoever keeps their profit survives. If profit exceeds 20%, withdraw a portion ((1/2 or 2/3)) to stable assets. Then let the remainder ride with the market, reducing psychological pressure and the chance of making wrong moves. In the crypto market, no one exits perfectly at the top; only those who know how to lock in profits into their wallet keep their money.

  1. 15% Loss Is the Absolute Limit – Cut Immediately, No Negotiation Leverage magnifies small mistakes into account-destroying losses. A common scenario for beginners: 5% loss – try to hold on 10% loss – self-reassure 20% loss – start to panic 30% loss – paralyzed And then the account is wiped out before you know it

→ Standard rule: Hit the -15% threshold, exit – absolutely no hoping for a comeback. Frequently asked question: “What if I cut and the price bounces back up?” Straight answer: It’s fine. The most important thing is to keep your capital for the next opportunity. The market always gives new chances – no one has to die from just one trade. One bad trade only loses money. One bad trade held stubbornly can lose the whole account.

  1. After Selling, If Price Drops – Buy Back Immediately if Initial Logic Still Holds Many traders get stuck in the “self-blame – self-fear” mindset: Sell and price goes up → regret Price drops again → afraid to buy back End up watching the price surge again → miss both profit and opportunity

To avoid this: → If after taking profit the price drops but your original reason to buy is still valid – re-enter. At that point: You still hold the same number of coins as before You have extra cash from selling at a higher price Overall risk decreases, potential profit increases Even if the price bounces back to your previous sell zone, you should buy back if the trend hasn’t changed. Don’t miss a wave just to save a few bucks on fees. Trading fees are just coffee money. But missing a trend could be… a few weeks’ salary.

Conclusion Leveraged trading is not for dreamers. 3 survival rules:

  1. Withdraw profits – if you don’t, it’s as if you never had them.
  2. If loss hits -15%, cut – no negotiation.
  3. After selling, if price drops and trend remains → buy back according to your original strategy.

By following these three rules, most traders can eliminate 80% of the risks that the majority of players face.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)