Don't Get REKT Guide

Don't Get REKT Guide - Survival Tips for Degens

Liquidation: The Silent Killer

Liquidation occurs when you've lost 90% of your collateral. It's analogous to a casino, where market volatility acts as the house edge.

Warning Signs of Impending Liquidation:

• The price is moving against you

• You're sweating profusely

• Constantly refreshing charts

• Checking your position every 30 seconds

Pro Tips (From Reformed Degens)

1. Start Small, Dream Big

   • Use the minimum leverage (10x)

   • It’s still sufficient to risk losing money efficiently

2. Set Stop Losses (Even Mental Ones)

   • Have an exit plan

   • Adhere to your plan (this is the challenging part)

3. Avoid FOMO Trades

   • FOMO is a psychological trap

   • It leads to financial ruin

Understand Liquidation Math

• Your position gets liquidated when your loss is ≥ 90% of your collateral.

  • Example: Start with 100 USDC, lose 90 USDC = Liquidated (REKT)

Leverage Guidelines for Humans

• 10x-20x: "I'm being responsible"

• 50x: "I'm feeling dangerous"

• 100x: "YOLO mode activated"

• 200x: "I have no regard for my financial well-being"

Psychology of Trading

Remember: The market can remain irrational longer than you can maintain solvency (or sanity).

Stages of a Leveraged Trade:

1. Confidence: "This is easy money."

2. Concern: "It's just a small dip."

3. Panic: "Should I close this position?"

4. Terror: "Why didn't I take profits earlier?"

5. Acceptance: "That was a costly lesson."