Today's sharing: The characteristics of the trading market. Leverage is neither good nor bad, but what is the most important thing when leverage is easily available? It is to find out when leverage is in your favor and when it is not. Where is this dividing line? If you find a profit-loss dividing line for trading profits, and your own ability reaches the threshold of profit, then leverage can magnify the results. Gain more profits. If your ability has not yet reached the threshold of profit, then leverage will actually magnify losses. To understand this, you should know: the most important thing in the process of improving your own trading is not to rush to use leverage to expand yourself. Instead, you should let your ability cross the threshold of profit. What is the most fatal mistake on the road of trading? That is, in the early stage when you are not yet able to make a profit, you invested a lot of resources. At this time, you actually use the trading market to infinitely magnify your losses. Until you can no longer bear the limit, and the result is nothing more than two situations: the first situation is that all the money is lost and there is no progress. There is no money and no energy to support yourself to continue trading. You have no choice but to give up, and some even have to work to repay debts. The second situation: Although you have lost money, you have been working hard in this industry to improve yourself. After continuous learning and accumulation, you finally have enough knowledge of the market and can continue to make money from the market. However, due to the large amount of investment in the early stage, you do not have the funds to expand your profits. When you can realize this in advance and know that you are in the trading market: the first important thing is to make your cognition cross the threshold of profitability, and at this stage, you should invest as few resources as possible and focus your funds and energy on learning and improving your cognition. When you are able to make a profit, invest more funds and use the leverage of the trading market to expand your income. This growth path will make the trading path smoother than most people. Ping Zhiyuan, who has been sharing dry goods, continues to share some small financial knowledge so that we can make rice without taking detours.