Is trading just gambling? Position management is very important! Many friends jump right in with 10/20/50 times leverage!

Even 100 times, money goes in, and in one night it’s liquidated!

There are two types of people who use high leverage:

First: Those who like to bet small to win big, enjoy gambling, and are seriously risking it all!

Second: Another type is beginners who don’t know how to operate or plan their positions, and end up finishing before they even start!

Position management in trading is very important to maximize capital efficiency,

while also mitigating personal risk.

How to manage positions scientifically in trading?

Flexible use of funds: for example, if you want to open a position of 10,000 U, you can use 1,000 U at 10 times leverage, or 500 U at 20 times.

Set a stop loss of 1%-3%,

using 10% of your capital to aim for a 100% return, while keeping losses manageable.

If you use 10,000 at 10 times or 10,000 at 20 times...

A single market movement could wipe you out; there’s no margin for error, no trial capital, and it’s easy to lose everything, distorting your mindset!

Using high leverage to borrow multiple times your own capital for speculative actions, liquidation is common, while making money is rare. If you want to trade, first understand the basics, like leverage ratios and funding rates; if you know nothing and get liquidated, you’ll blame the tool for harming you.

So it’s crucial to plan your positions reasonably!

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