When investing, many people often encounter the dilemma of being in the right direction but not making a profit. In fact, this situation often occurs because investors use too high leverage, resulting in excessive risks and inability to make stable profits. On the contrary, adopting a low-leverage strategy and intervening in the trend of a large cycle can achieve more stable returns.
Some people enter the currency circle with the original intention of getting rich quickly, thinking that using several times of leverage can get a greater return. However, the real wealth is reserved for experienced investors. If you are still in the novice stage and cannot accurately grasp the turning point of the market, it is best not to try high-leverage operations. The risk of high leverage is extremely high. Once the best entry time is not seized, the principal may be lost due to stop loss problems.
If you choose low leverage, you can clearly see the trend changes from the daily chart and the four-hour chart, find the dividing line between long and short, and intervene at these key points, you can make steady profits. A simple operation method is to choose a moving average as a trading rule. When the market price always remains above the moving average and does not fall below it, you can buy when the price pulls back to near the moving average.
In addition, you can combine the rising structure in Dow Theory for operation. If you find that the market has shown a smooth upward trend and has a higher low, that is, the market has an upward inflection point, then you can intervene to do more. Although this operation method has a relatively slow return, the result of long-term stable profit through the compound interest effect is very impressive. In contrast, investors who try to roll over positions in one day through high leverage often lose most of their principal when they stop loss because they fail to accurately grasp the entry time.
In short, being too greedy often leads to failure to make a profit. Even in spot trading, it is necessary to avoid blindly adding positions, otherwise it is easy to fall into the dilemma of "roller coaster-like" fluctuations. Guanzhu Public Account: Xiaoxiong Lunbi, Mianfei Jiaqun
Therefore, I suggest adopting a one-time leverage contract strategy and setting a reasonable stop loss point. For example, a stop loss can be set near the long-short dividing line of a large cycle, so that while keeping the risk controllable, it can also achieve good returns in the bull market.
