A Letter to Liquidation Victims: This is Not the End, but the Beginning

Seeing the topic “150k people liquidated” trending on Gate’s hot search makes me feel complicated. Because I know, this is not just a cold number; behind it are 150k real traders, including beginners and veterans; some have lost months of profits, others have lost their principal. If you are one of them right now, please take a few minutes to read this letter.

First, please stop blaming yourself. In this market, almost every trader who has survived long enough has experienced liquidation or near-liquidation. Including myself. Liquidation doesn’t mean you are stupid or a failure; it only means that at this specific moment, you used leverage beyond the market’s capacity to bear, and encountered unfavorable volatility. This is the tuition fee of trading, expensive as it is, but as long as you’ve learned something, it’s not a wasted cost.

Second, don’t rush to make back the losses. The most dangerous mindset after liquidation is “I must immediately recover the lost money.” This idea will lead you to use larger leverage, chase riskier coins, and ultimately fall into a vicious cycle of liquidation—recover—liquidation again. The correct approach is: clear all your positions, close your account, go to sleep or take a walk. Give yourself at least a week of cooling-off. During this week, do only one thing—review. Take out your trading records, look at each trade: where did you open the position? Why did you open it? Did you set a stop-loss? Did you violate position management principles? Find the most fatal mistake, write it on a sticky note, and stick it next to your screen.

Then, restart. After completing the review and confirming that you have stepped out of the emotional state, you can start re-entering the market with small funds (for example, 10% of your previous principal). This time, only spot trading, no leverage. The goal is not to make money but to rebuild your “feel” for the market and discipline. After a month of consistent profits or proper execution of your plan, then consider gradually increasing your positions and using low leverage appropriately.

Regarding the current market: many will tell you “Now is a good time to bottom fish,” showing various technical charts and news analysis. But for you, the most important thing now is not to bottom fish, but to repair. Repair your capital, repair your mindset. Missing this potential rebound doesn’t cost you anything. But if you rush to recover and re-enter at the wrong time, you might lose the chance to start over.

Finally, remember this: the crypto market never closes, opportunities are always there. Today, you see 150k people liquidated, but you also see DeFi and SocialFi holding strong against the trend, and communities still rationally discussing geopolitical risks and trading strategies. The most fascinating part of this market is that it constantly eliminates the fragile, while rewarding those who can stand up from the ruins and become stronger traders.

I hope that the next trending topic will no longer be the number of liquidations, but your story of bouncing back from the lows. Take care, and I wish you good luck.