2025-12-26 15:23:27

2025 is now in countdown, less than a week until the end of the year. In such market conditions, only traders who can preserve their principal and achieve steady returns truly understand the brutal laws of the market.

The black swan event in the crypto circle in October is still fresh in memory—Bitcoin plunged 13.5% in a single day, with total liquidation reaching $19-30 billion, and 1.6 million trading accounts instantly wiped out. The complex triggers of that event included external tariff pressures, traditional financial linkages, market maker liquidity exhaustion, and collective algorithmic trading crashes. A liquidity squeeze directly altered countless account trajectories.

This lesson is deeply etched: high leverage is like a meat grinder, and stop-loss is not optional but mandatory. For highly volatile assets, if you don’t understand the liquidation mechanism, entering recklessly will only make you a harvest target.

In the year-end sprint, to survive and make money, consider adjusting your approach as follows:

**Clear Position Structure**: Keep core holdings at 50%-60%, choosing assets with stable liquidity for long-term positions; allocate 30% to flexible positions to catch hot opportunities; leave 10%-20% as cash reserves for entry points during sharp declines. Never think about going all-in to turn things around.

**Extreme Risk Control**: Limit individual asset positions to 25%, and completely abandon leverage in crypto assets. When principal drawdown reaches a critical point of 8%-10%, cut losses immediately; stubbornly holding will only cause losses to snowball.

**Restrain Trading Pace**: Year-end market liquidity is fragile, and large fluctuations often stem from emotions rather than fundamentals. Being bullish or bearish in moderation is the wise choice; staggered entries on dips are better than chasing highs.

**Mindset Construction**: Don’t be led by influencers’ holdings or community hype. Stick to fundamental analysis and cash flow evaluation; in extreme market conditions, discipline’s value far exceeds luck.

Year-end is a test of resilience—ultimately a battle to defend your principal. Only by holding steady can there be a chance to turn things around.

BTC-0.83%

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SolidityStruggler

· 3h ago

The wave in October really taught me a lesson, losing 1.6 million accounts is just painful to hear. Now I just want to stay safe and live until next year, don’t try to go all-in on such things. --- The analogy of a high leverage meat grinder is spot on, many people still haven't realized they are already dancing on the blades. --- Holding core positions 50-60% for the long term, 30% in tactical positions, and 10-20% in cash... It sounds simple but actually doing it is very difficult, resisting temptation is the hardest part. --- The phrase "buy more, sell less" hit the mark, by the end of the year you should hide some, don’t get carried away by the frenzy of the community. --- A 8-10% loss triggers a stop-loss, many people can’t wait for that moment, always hoping to hold on a bit longer... and the result is infinite loss. --- Fundamental analysis may sound old-fashioned, but those who truly survive are the ones who do it. --- Don’t get cut by big V influencers, it’s a harsh truth but real, their risk tolerance is completely different from ours. --- The importance of cash reserves is truly underestimated, only those who can buy during a crash will laugh last.

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liquidation_surfer

· 3h ago

That wave in October was truly incredible. The moment 1.6 million accounts were wiped out, I was thinking, leverage is really a gambling playground for daredevils. Those who don't understand the stop-loss mechanism but still go all-in are just here to give away money, no other explanation.

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SchrodingerAirdrop

· 3h ago

The October wave was really a bloodbath. My friend was directly liquidated for 1.6 million, and he's still recovering. Going all-in sounds exciting, but it also leads to quick death. It's better to be conservative and diversify. Longs more than shorts is indeed the truth, but I just can't control my hands. Stop-loss is easy to say, but when you're down 8%, no one wants to cut. In the end, everyone ends up in the same boat. I love the idea of a principal protection battle. It's much more practical than chasing dreams of doubling your investment.

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AlphaLeaker

· 3h ago

In October, that wave really wiped out a bunch of people, with 1.6 million accounts wiped clean... I checked my friend's position allocation, and it really does look just like what was described in the article for survival. All-in positions are gone, seriously. The statement about defending the principal is spot on. Go long and do less—this is the strategy for those who stay alive.

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SigmaBrain

· 4h ago

October's wave was truly a vivid lesson; zeroing out 1.6 million accounts is not just a number, it's 1.6 million lives shattered. Hodling might be better to forget; honestly, splitting your positions and following discipline are the true foundations. The phrase "buy high, sell low" is spot on, especially at the end of the year. Don't follow big V influencers and think you'll succeed easily. A 8-10% stop-loss might sound harsh, but compared to holding on and getting liquidated, that's real despair. High leverage is really a meat grinder, not just a metaphor, but pure physical bloodshed. Cash reserves are often overlooked, but in fact, a sharp decline is the real opportunity to pick up bargains. Sticking to fundamentals sounds simple, but actually doing it is hard. When emotions take over, that's when it’s the biggest test.

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RuntimeError

· 4h ago

The wave in October really made people realize that not cutting losses is a way to invite death --- All-in turnaround? Wake up, that's just a gambler's fantasy --- Protecting principal is much harder than making money, honestly --- For those still leveraging now, I really don't understand --- Liquidity is poor at the end of the year, the quieter it is now, the better --- I was once led into a trap by a big V, now I stick to my own rhythm --- I still remember the account wiped out with 1.6 million, cold sweat --- 8-10% should be cut, this discipline sounds easy but is very hard to implement --- Long on, short off, sounds good, but executing it is really a test of mentality --- The safety of the principal is the top priority, no one would argue with that

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