Many friends often wonder: Is the leverage too high? Let's discuss the logic behind determining the leverage ratio:
1. Individual risk preference.
2. The contract currency of the trade.
3. The scale of the contract market.
4. Whether to use simple interest or compound interest model.
5. The judgment of market size.
In short, how much leverage to use is determined by personal risk preference!
Things to pay attention to after opening a position:
1. Be sure to develop the habit of setting a stop-loss as soon as you open a position; setting a stop-loss is key, and don't entertain the idea of hedging or being lucky. If you still risk being trapped or face liquidation, it indicates a problem with your operation.
2. For each trial position, it is recommended to keep the stop-loss amount initially below 15% of the total amount (you can adjust according to your own risk tolerance, and set it as needed after achieving stable profits).
3. When there is a mistake in the trial position, decisively stop-loss; don't think about increasing the position to break even. After all, the market is mostly volatile, and while increasing the position can sometimes break even, you cannot rely on this method.