Why is "no stop loss" + "heavy position" the "deadly combination" for getting liquidated?
1. Heavy Position (Over-leveraged)
· Function: It amplifies your losses. For example, if you use 10x leverage and the market moves against you by 1%, your principal will lose 10%. If you use 100x leverage, a 1% move against you is enough to Get Liquidated.
· Psychology: Behind a Heavy Position often lies the gambler's mentality of "getting rich overnight," trying to obtain the maximum profit with the smallest principal. However, even a slight unfavorable market condition can bring enormous psych