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I used to think the same way—when my position got too large, I’d rush to add margin to avoid liquidation. But in every case, I still got liquidated. I used to believe that with such large institutional positions, there must be more sophisticated risk controls. Later, I realized that when positions grow too big, psychology becomes just as unbalanced. The heavier the position, the more you feel pressured to add margin; the more margin you add, the harder it is to cut your losses. In the end, the outcome is almost always the same: Whether you’re a retail trader or an institution, if you’re wrong on direction, you get liquidated. In the end, trading isn’t about courage—it’s about position size and discipline.

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