The Leek Principle! Keeping funds and saving bullets is the hard truth!

Investing is only a step away from gambling. You carefully study daily charts, hourly charts, 15-minute charts, and then build your position. However, short-term price movements are very difficult to predict accurately. You anticipate it will rise, so you take a leveraged long position. However, not long after you open your position, it starts to fall. It may rise later, but it often drops nearly 10% after you build your position before it starts to increase.

Due to the leverage effect, unfavorable fluctuations of less than 10% can lead to losses of several dozen percentage points. Eager to recover your losses, you increase leverage and continue to fight, trading frequently. Due to high leverage, the tolerance for unfavorable fluctuations is very small, leading to frequent stop-losses.

After several rounds, your principal has already lost more than half. At this point, you are already blinded by losses, turning into a gambler, throwing all rules out of the window, and increasing leverage recklessly, even setting no stop-losses. The consequences are predictable: liquidation and total loss is the outcome.

This is a weakness of human nature. Most people face liquidation in such situations. To avoid this, there is only one method: never increase leverage + stop opening positions on the same day after a loss. $BTC #美国稳定币法案