Is trading just gambling?
Many friends often use 50x
or even 100x leverage. As soon as the money is deposited, it can get wiped out overnight!
There are two types of people who use high leverage:
First: those who like to take big risks with small amounts, who enjoy going all in, truly gambling!
Second: there are also new traders who do not know how to operate, plan their positions, and end their trading journey before it even starts!
Position management in trading is very important to maximize capital efficiency,
and to avoid personal risks.
How to manage positions scientifically in trading?
Flexible use of funds: For example, if you want to open a position of 10,000 USDT, you can do 1,000 USDT with 10x leverage, or 500 USDT with 20x leverage.
Set a stop-loss of 1%-3%,
use 10% of your funds to aim for 100% profit, while keeping losses under control.
If you use 10,000 with 10x or 20x leverage...
just one market movement could wipe you out, with no margin for error, no trial capital, making it very easy to lose everything and distort your mindset!
Using high leverage to borrow funds multiple times your own capital for speculative activities, getting liquidated is common, making a profit is rare. If you want to trade, first understand the basics, such as leverage ratios, funding rates, and if you know nothing at all and end up getting liquidated, you can’t just blame the tool for hurting you.
So it is essential to plan your positions reasonably!
In the crypto circle, if you don’t have a good network or insider information, I suggest you follow me, find me, and I will help you to profit without risk. Welcome to join the team!!!
