Lesson 11 · 5 min
How accounts actually go to zero
It is rarely a mystery wick. It is a setting that was already wrong before the wick arrived.
The stories below are the same loss wearing different clothes. None of them require a crash. A ordinary move is enough when the position is sized off the slider.
The slider was the plan
0% of the margin still there
25× isolated. A 4% move against you is the whole margin. The day did not have to be historic.
Cross was left on
0% of the margin still there
The slice you pictured was never the cap. One trade had the wallet.
Funding for a week
45% of the margin still there
Price went nowhere. The crowded side paid the clock on a large position until the margin was thin.
Added to the loser
12% of the margin still there
The second order doubled the size and cut the distance to liquidation. Hope was doing the job of a stop.
- Adding to a loser multiplies a trade you have already been told is wrong.
- Holding a crowded side through funding days is a slow leak that screenshots of 'the setup' never include.
- Cross margin plus a shared wallet is how a small coin spends the rent money.
In one sentence. If the only way the trade 'works' is the maximum leverage, it does not work.
Which choice actually moves liquidation farther away on a new trade?