In fact, position management and capital management seem very simple, but many people have not thought about it carefully.
For example, why do you always open a position with full leverage of 10x? Have you considered that the certainty of the market is different each time? Why not increase leverage during high-certainty market conditions and play less during low-certainty ones?
Another example, during a bull market, you can put all your money in without any problem; it's a bull market, after all—there are many opportunities, it's simple, and mindlessly going long will always yield returns.
So why, when the market is so difficult now and you are about to lose everything, do you still use your credit card to play?
Many people can't guarantee a profit with just 1000 yuan, so why do they think they can guarantee a profit by borrowing tens of thousands? Since profit cannot be guaranteed, why borrow?
For large funds, it is even more important to reduce greed and strengthen risk control.
Even seemingly stable things can experience black swan events. Otherwise, why are they called black swans?
