It is not uncommon for novice traders to be drawn towards wanting to achieve 20x or even 100x gain, this is however where many lose their funds and surrenders potential profits. My first stint in trading was spot trading, which is much easier and clearer than leveraged trading but more importantly, it helped me in understanding risk management.
Why Smaller Multiples Are Safer;
1. Lower Risk Exposure
With lower aim usually comes lower return and 4x to 10x returns are associated with low risk investment. Such investment’s usually include more established assets that have their market behavior set, in contrast employing an aim to achieve 20x to 100x would require volatile or even extremely speculative trading with increased risk of losing all invested funds.
2. Compounding Opportunities
When smaller figures are consistently earned they can add up or in other cases compond, this over a long time span can yield greater returns. For instance, a trader who maintains their 5% per week target over several months would perform better than a single trade whop does not hold to only one high risk wip.
3. Control Over Losses:
4x to 10x trades or targets are easier to manage with stop loss that are more suited to such situations, these allow the trader to minimize their loss. On the other hand overly aggressive trades that have risk of losing it all come with stop loss not engaging until a strong drop of volatility has occurred.
As far as my experience goes, switching from Spot Trade to Futures - the volatility becomes more obvious.