Pit ⑥ | Position and Leverage are Always More Important Than You Think

This is a pit that everyone knows about but almost everyone underestimates.

You think you are trading the market,

but in fact, you are trading — your own limits of endurance.

1. This pit often starts with the phrase "It's fine."

A slightly larger position, it's fine.

A slightly higher leverage, it's fine.

A small market pullback, it's fine.

📌 Until one day,

all "it's fine" happens at the same time.

2. Why can position destroy correct judgment?

Because there are three certain things in the market:

It will fluctuate.

It will oscillate.

It will repeat.

And position and leverage,

determine whether you can withstand these "inevitabilities."

📌 It's not that the market is targeting you,

it's that you exposed yourself to normal fluctuations.

3. The most common illusion among beginners

As long as my direction is correct,

a little higher leverage doesn't matter.

The truth is:

Leverage does not magnify profits

but compresses your margin for error.

📌 You are not losing to the market,

you are losing to your own risk settings.

4. How does the market "educate" this pit?

The method is extremely simple:

One normal pullback.

One accelerated pin.

One moment of liquidity disappearing.

📌 The result is usually:

👉 The direction is correct, but the position goes to zero.

5. Those who have stepped on this pit will form a new standard.

They start placing orders like this:

First calculate how much they can lose at most.

Then decide on the position.

Finally consider leverage.

📌 Position is the foundation,

leverage is just a tool.

6. A very realistic judgment standard

If you are trading:

Can't sleep.

Frequent watching the market.

Emotions fluctuate with the K-line.

📌 That is not a market problem,

it's that the position has already exceeded the limit.

In summary,

The market can come again,

but the blown position will not revive. $BTC $ETH $BNB #迷因币ETF #ETH走势分析