I. Leverage is not a disaster; the key is control
Beginner's misconception: "High leverage = certain death" (wrong!)
Professional strategy: 100x leverage + 1% position = controllable actual risk
Just like wearing a seatbelt in a supercar, a trader used 50x leverage + 0.5% position, hasn't been liquidated in three years and earns over 300% annually
II. Stop-loss is a lifesaver
In March this year, 83% of those liquidated were holding on to losses over 10%!
Survival rule: single loss not exceeding 1% of capital, like insurance for your wallet
III. When you earn, increase your position and let profits snowball
Amateur trading: take a little profit and run, miss 10x opportunities
Professional strategy:
• First bet 5% of capital
• For every 10% profit, use 20% of profits to increase position
Someone turned 50,000 into 500,000 in two months just using this trick
IV. Position Calculation Formula (must save)
Max position = (capital × 1%) ÷ (stop-loss margin × leverage)
Example: 100,000 capital + 1% stop-loss + 20x leverage = max bet of 1,000 yuan
V. Three-Step Profit Locking Method
① Take profit at 15% → sell 1/3
② If it rises another 15% → sell another 1/3
③ Decide on the remaining position based on 4-hour candlestick chart
VI. Black Swan Protection Shield
Use 0.5% of funds to buy insurance for each trade
During the April crash, some people saved 2 million using this trick
VII. Self-Check List for Retail Investors
• "Always recover losses" → 92% liquidation
• More than 100 trades per month → 20% transaction fees
• Earned but got greedy → 83% of profits wiped out
VIII. Mathematical formulas defeat human nature
Profit formula = (win rate × average gain) - (loss rate × average loss)
Just do this:
• Stop loss immediately at 1% loss
• Take profit only at 10% gain
30% win rate can still make money
IX. Living long is winning
The market rewards "thousand-year turtles", not "suicide squads"
Advice: set clear trading rules
Summary mantra:
Keep position small · Stop loss quickly · Be greedy with profits · Guard against extremes · Maintain discipline
Remember: improve 1% every day, and after a year, you will be a market winner!
