High leverage + short-term high frequency = a dead end
Life and death are determined by fate, wealth and honor are determined by heaven
The stupidest thing is to want to trade every day and make money every day
It is not impossible to play high-selling and low-buying every day, but you can't make money at all. My ultra-short-term success rate is over 65%, but I still don't make money
Suppose your principal is 100, if you use 100 times leverage, the success rate is 60% each time, and the handling fee for each transaction is 10% (I don't remember the exact amount, the handling fee for high leverage is very high), the profit and loss ratio of each transaction is 1.5:1, your expected profit = 100x1.5x60%-100x10%=80, expected loss = 100x1x40%+100x10%=50, one positive and one negative, your final profit is only 30
Most people can't actually achieve a 60% success rate, and it is difficult to maintain a profit and loss ratio of 1.5:1 for each transaction
High leverage, high-frequency short-term contracts, a dead end
So how can you get rich with high leverage?
In fact, whether it is BTC or ETH, there are basically one or two opportunities for fluctuations of more than 10% every month. If you use 100x leverage and catch it once a month, you can double it by 10 times, and twice is 100 times. If you catch it once a month, how many times a year will it be?
Of course, this is without considering failure. If you use full position and full leverage every time, you can make money quickly, but if you make a mistake once, all your efforts will be in vain.
The most important thing for high leverage profit is to seize the few opportunities with high profit-loss ratio and high winning rate, rather than watching the market every day and making five moves a day, which can only contribute to the transaction fee of the exchange.
The only way out for high leverage players: patiently wait for opportunities of more than 5 points, improve your success rate, low-frequency trading, and mid-term wave position holding.
Lessons from experienced people
