Lessons from a Liquidation: How I Lost $100,000

Sharing a painful liquidation experience in hopes that others can learn from it.

In March 2023, I went long on BTC with a principal of $100,000 and 20x leverage.

1. Opening price: $28,000
2. No stop-loss set (first mistake)
3. Price dropped, and I chose to hold the position (second mistake)
4. As the price continued to fall, I added to my position to average down (third mistake)
5. Ultimately liquidated at $25,000

• ❌ No stop-loss = gambling
• ❌ Holding a losing position = waiting to die
• ❌ Averaging down on losses = accelerating death
• ❌ High leverage = high risk

• ✅ Always set a stop-loss
• ✅ Maximum 5x leverage
• ✅ Maximum single trade loss of 2%
• ✅ Admit mistakes, do not hold losing positions

I hope my lessons can help others.