Assuming we start with a capital of 100U.
In the first trade, I used 10% of the capital, which is 10U. If successful, the funds will rise to 130U.
In the second operation, I will use 10% of the current funds, which is 13U as the position. Assuming this time it doesn't go well and hits the stop loss, the funds will fall back to 117U.
In the third attempt, I will again use 13U as the position. If this time is successfully profitable, the total funds will rise to 156U.
For the fourth investment, I increased the position and invested 16U, which is also about 10% of the current funds. As a result, it was profitable, and finally, there was 204U in the account.
When opening a position, always follow the strategy to manage the position:
For example, if the entry price is 2685 (using 10% of the funds), when the price rises to 2695, we will increase the position (still using 10% of the funds). At the same time, set the stop loss at 2705. If you want to be a bit more aggressive, you can buy in batches, using 7% of the position each time. The benefit of this approach is that the risk-reward ratio can be better, reaching 1:1.5, and for skilled traders, it can even reach 1:2.6.
When approaching the profit target, about 5 to 10 points away, you can first close 70% to 80% of the position. For the remaining part, raise the stop loss line by 5 to 10 points. If the price doesn't break this new stop loss point, then hold on. But once it breaks and doesn't meet our expectations, gradually reduce the position, closing 70% of the position at each key resistance level while also adjusting the stop loss.
If we're lucky and have 2 to 4 profitable operations in a row, our total funds can significantly increase. This method considers both risk control and maximizing returns.
Having been through the rain, I want to help the newcomers just entering the market to avoid maximum risks!!!
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