Why did my operation start to become distorted after opening a 10x leverage? 🤔
Let me talk about my own feelings first, because I seem to be particularly interested in opening short positions.
But the characteristic of opening a short position is that the time for it to go down is very short. I have to keep paying attention to where it might fall or go down. If I don’t stay focused, the time left for me to make a profit manually is very short.
And this only happens when the trend judgment is correct. If the trend judgment is wrong, and I violate the trading discipline and choose to hold the order, then my assets will be halved. If I do not abide by the discipline, one loss will be equivalent to two gains.
Another thing is that the profits from short-term trading are really not as good as those from long-term trading. Even the rebound of long-term trading during the decline may make people feel uncomfortable.
Of course, the choice of long or short is determined by trends, structure, and points, not by me being a stubborn person who only knows how to go short.
The uncertainty of going long is that I don’t know when the price will rise, and I can’t be sure whether my current price is the lowest point at the moment.
Why am I so obsessed with whether this point is the lowest point? Because my desire to earn has decreased, but I attach great importance to stop loss. Since the stop loss for long positions is below the lowest point, if I chase the rise halfway up the mountain, first, the profit and loss ratio will be reduced, and second, the risk of loss I face will also increase, so I am unwilling to chase the rise, even if it may rise by 20%~30% next. But I don't have the life to take it, and chasing long positions halfway up the mountain is too easy to hit the stop loss.
The feedback from touching the top is more timely. Even if it reaches a higher point, my stop loss will be much smaller than that of chasing the rise halfway up the mountain.
Another thing is that after opening a high leverage, my acceptance of drawdown has become lower. After all, with the support of ten times leverage, a 5% drawdown becomes a 50% profit drawdown in my eyes.
Besides, I invested all my money in it, so how could I not feel heartbroken?
To be honest, this kind of market with rising prices is not a market where I can make money.
So can I still handle a large increase? I can handle the original 3~5x leverage because I don’t care about callbacks. If there is a callback, there will be no profit. But if there is no profit, I will either move the stop loss or stop loss at the original resistance level.
I now feel that it is easy to be hit by the moving stop loss. I have the kind of paranoia that when I move the stop loss, the coin will hit my moving stop loss first and then rise.
Well, I admit that if I want to do it for a long time, I have to overcome my paranoia.
It is not impossible for this situation to occur. Then I can only say that this kind of rising trend is not something I can take.
The only thing I can control is the market that rises and falls slowly and does not interfere with the market. I cannot make money from other market conditions.
Accepting a pullback is also a sign of having the courage to admit defeat.
The purpose of all my stop-loss actions is to strictly control risks, because there is no end to the money you can make in this market, but you can easily lose it all!!!
After reflection, I became interested in going long again, for no other reason than the huge profit margin!!