$LIGHT At 3 AM, the phone rang, breaking the silence.
I answered the call; it was a friend from Tangshan, Hebei: "Sister Fei, I opened a long position with my entire account of 10,000 U at 20x leverage, and with a pullback of only 5%, I lost all my money! How could this happen?"
I looked at the trading records, full position at 20x leverage, and there was no stop-loss set! This is simply digging your own grave.
The biggest trap of a full position: it's not the leverage, but the weight of the position!
Do you think a full position can earn big? I tell you, a full position can lead to a quick liquidation. It's like carrying 100 kilograms is fine, but 500 kilograms of weight can suffocate you.
For example:
With a 1,000 U account, if you use 900 U with 10x leverage, a 5% market fluctuation will result in liquidation, wiping out the account.
Using 100 U with 10x leverage requires a 50% fluctuation to liquidate.
This is not a leverage issue; it’s that your exposed risk is too great! That's how friends get hurt, with 95% of their capital in a full position, and a slight market pullback leads to liquidation.
But if you want to make big money, first learn to protect yourself!
I've been doing full positions for half a year without ever being liquidated, and my capital has instead doubled. There are three principles that help me move forward steadily:
1. No single position exceeds 20% of total capital.
Assuming a 10,000 U account, the maximum investment is 2,000 U. Even if wrong, a stop-loss of 10% results in a loss of 200 U, which does not hurt the principal, and there’s always a chance of rebound.
2. Single loss must not exceed 3%.
With 2,000 U at 10x leverage, a stop-loss of 1.5% results in a loss of 300 U, which is at most 3% of total capital. Even if there are several consecutive mistakes, it won't cause serious damage.
3. Do not open positions in a volatile market.
Do not enter during a volatile market; only act when there is a trend breakout. Once in, do not casually increase the position to avoid emotional interference.
The true meaning of a full position: buffering, not gambling!
The purpose of a full position is to leave room for error in market fluctuations, but the premise is to test with light positions and strictly execute risk control. The goal is to live more steadily, not to gamble for fame.
There was once a fan who faced liquidation every month; after following my operations for 3 months, he turned 5,000 U into 80,000 U! He said: "I used to think a full position was gambling with my life, but now I realize that a full position is to live more steadily."
Bet less on direction, control positions more, slow is fast!
Opportunities do not wait for people, but only by living longer can one seize the moments of high profit.
If you also want to earn steadily without losing your direction, join me in planning and seize every opportunity in the market!
