The lower the price, the more aggressive the margin call?
When the price is $10, you buy $10,000, and then when the price drops to $5, you cover your position with $10,000. In this way, the cost magically becomes $6.67, which seems to be a good way to save money. But when you actually do it, you have to have enough money, otherwise the market will continue to fall and you may have no funds.
Some people say that as long as you make 1% a day, you can easily become a millionaire. Doesn't it sound particularly attractive? But the actual situation is very cruel. The market is always volatile, and human errors may make you lose all your capital. Investment is not a simple game of probability. Even if you have a 60% chance of success every time you invest, after 100 consecutive investments, can you guarantee that you will not be defeated by the 40% failure?
Let's talk about the compound interest effect. It sounds like a good way to get rich quickly. But don't forget that it is very difficult to make money continuously, let alone achieve that kind of amazing compound interest growth in a short period of time. Don't be fooled by those stories of getting rich overnight. Investment requires patience and strategy.
In the contract, position management and fund management are very important. Don't be like a novice or those old leeks, taking 20% to 30% of the principal to take risks at the beginning. I am not like this. I will use 2% to 5% of the principal as the basic position, and then add 20 times leverage. This can not only ensure the safety of funds, but also allow me to flexibly respond to various situations in the market.
Those who dare to use 100 times or even 125 times leverage, I really think they are playing with fire and asking for trouble. Investing is not gambling, don't be blinded by greed. Remember, a stable investment strategy is the long-term solution.
If this article is helpful to you, then click to follow, the callback is not in place? Or continue to wait? The idea is a bit confused, why not keep up with my pace and lay out the big bull market together.
