Old topic, how to make a small fund of less than 5,000 bigger?
Imagine that you have a coin in your hand, and its value can double every day. After a month, the change in its value can be described as earth-shaking. Doubled on the first day, doubled again on the second day, and so on, the final value will be so huge that it is staggering. This is the magic of compound interest. Even if you have little initial capital, as long as you continue to double, you can eventually gather into an astonishing number.
For those friends who don’t have enough funds but want to enter the market, you should set ambitious goals. Many people think that small funds should frequently conduct short-term transactions to quickly increase value, but in fact, medium- and long-term transactions may be more suitable. Instead of making a meager profit every day, it is better to focus on making each transaction grow several times. What we pursue is the increase in multiples, which is an exponential leap.
In terms of position management, the first task is to diversify risks and not concentrate all funds on one transaction. You can divide the funds into three or four parts and invest only one of them each time. For example, if you have 40,000 yuan, divide it into four parts and only use 10,000 yuan for each transaction.
Use leverage appropriately. For mainstream currencies, the leverage ratio should not exceed ten times, and for small currencies, it should not exceed four times, and it should be adjusted dynamically according to the situation. If there is a loss, supplement the same amount of funds from the outside; if there is a profit, withdraw a part appropriately. In any case, you can't let yourself fall into the quagmire of losses.
When your funds grow to a certain scale, you can consider gradually increasing the amount of each transaction, but don't increase too much at one time, and follow the principle of gradual progress.
Through reasonable position management and a sound trading strategy, small funds can also gradually achieve large-scale appreciation. The key is to be patient, wait for the right time, and focus on the big goal of each transaction, rather than the small profit every day.
I also know that anyone may encounter this situation of liquidation. But at that time I had spot income to make up for the loss, and I don't believe that your spot has no income at all. My futures only account for 2% of the total funds, so no matter how much I lose, I will not lose it all, and the loss amount has always been within my control.
I hope we can all make our funds grow like a snowball.
