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)
Start Small, Dream Big
Use the minimum leverage (10x)
It’s still sufficient to risk losing money efficiently
Set Stop Losses (Even Mental Ones)
Have an exit plan
Adhere to your plan (this is the challenging part)
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:
Confidence: "This is easy money."
Concern: "It's just a small dip."
Panic: "Should I close this position?"
Terror: "Why didn't I take profits earlier?"
Acceptance: "That was a costly lesson."
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