Capital management may not help you quickly increase profits, but it will always help you survive in the market, at least for as long as possible. It acts as a shield to protect you when the market attacks.
One thing I have often noticed over the years is that the vast majority of those who manage capital well tend to last longer than those who manage money ineffectively.
Moreover, it cannot be denied that capital management is also about managing your own psychology, appropriately coordinating the feelings of fear and hope within you.
For example, consider a trader entering a position with a leverage of 50x; their mindset will be drastically different from someone entering a position with a leverage of 5x. Trader A, using 50x leverage, will find it much more difficult to hold onto profits compared to Trader B with 5x leverage.
Trader A's psychology will be continuously damaged, as they frequently check the charts, experiencing anxiety, fear, and impatience. If losses occur, it is clear that Trader A will suffer much more psychologically than Trader B, as higher leverage brings greater profits, but also increased risk. This can lead to poor decision-making afterward.
