Many people have asked me privately how much leverage I usually use. Let me tell you.
How much leverage to use depends on several conditions:
1. How much risk are you willing to take?
2. Which contract currency are you trading?
3. How much are your contract funds?
4. Are you doing simple interest or compound interest?
5. What do you think of the size of the market?
So if you directly ask me how much leverage to use, it actually makes no sense. If you are willing to take high risks and want high returns with small capital, wait for an opportunity to be certain and then pull leverage based on the stop loss level. How can you make the first pot of gold if you don't do this?
The difference between simple interest and compound interest is that if you are doing simple interest, the leverage can always maintain a certain multiple. But if it is compound interest, as your capital increases, the leverage must be reduced and the tolerance for mistakes must be increased, otherwise you will have to start over after a big mistake.
Another point that I think is very important is that when you encounter a big market, you must dare to take heavy positions, because big market conditions do not happen all the time. As long as you catch a wave, your capital amount may increase to a higher level.
Old fans who are familiar with me should know that my actual profit started with compound interest of 10,000. In the first transaction, I used 20 times leverage to go long BTC. It increased to more than 100,000 in half a month. After that, the leverage gradually decreased. When the capital is hundreds of thousands, it generally does not exceed 10 times. When it reaches two to three million, the leverage will generally not exceed five times. With the current amount of funds, I may open about three times the normal market conditions.
