At one o'clock in the morning, the phone "buzzed—" and shook a little.
The sisters from Zhejiang, once connected, were trembling:
"Sister, it's over, my 20,000 U, fully invested with 10x leverage, has only dropped by 3%, and it's all gone!"
I looked at the records, 19,500 U was fully in position, and there was no stop-loss set. A typical case of "betting your life for profit."
Many people think that—being fully invested can withstand risk, after all, it's "their own money," and if they lose, they can earn it back double.
In fact, it's just the opposite; being fully invested is the most dangerous play. It's like an ice pick; its sharpness is an advantage, but it can easily break in your palm.
The root cause of liquidation is not leverage, but "heavy investment."
For example, if you have 1,000 U and use 900 U to open 10x leverage, as long as the market moves against you by 5%, you'll get liquidated;
but if you only use 100 U to open 10x, the market has to move against you by 50% for it to be a problem.
My sister invested 95% of her principal. Under 10x leverage, even a slight pullback feels like an ice blade piercing the heart.
Later, I organized three principles and adhered to them for half a year; not only did I not get liquidated even once, but my account also doubled:
① Only use 20% of total funds each time.
For a 10,000 U account, the maximum used in one go is 2,000 U, even if the stop-loss is 10%, it only loses 200 U, not touching the fundamentals.
② Single loss not exceeding 3%.
Open 10x with 2,000 U, as long as you set a stop-loss of 1.5% in advance, at most you lose 300 U, which is exactly 3% of total funds.
③ Don't trade during fluctuations, and don't increase positions when profitable.
Only trade in trending markets, and don't let emotions dissolve reason.
A fan learned these three rules from me; from monthly liquidations to rolling 5,000 U into 8,000 U in three months.
She later told me: "I used to think being fully invested was a gamble; now I understand that light investment is the way to sustainable growth."
In this market, only those who can survive have the qualification to reach the spring flowers blooming.
The market is already brewing; don’t wander blindly in the dark alone.
If you are willing, Sister Bing will take you to shore!
