Is trading just gambling?

Many friends often use 10/20/50 times

or even 100 times. As soon as the money is deposited, it can be wiped out in one night!

There are two types of people using high leverage:

First: those who like to risk a little for a lot, enjoy betting big, and are essentially gambling!

Second: there are also newbies who don’t know how to operate or plan their positions; they haven't even started trading before losing everything!

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

and to avoid personal risk.

How to scientifically manage positions in trading?

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

Set stop-loss at 1%-3%,

using 10% of funds to seek 100% returns, while keeping losses manageable.

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

a sudden market movement can wipe you out; there’s no margin for error, no principal for trial and error, and it’s easy to lose everything, distorting your mindset!

Using high leverage to borrow multiples of your own capital for speculative behavior often leads to liquidation; making money is rare. If you want to trade, you must first understand the basics, such as leverage ratios and funding rates. If you don’t know anything and face liquidation, you can’t blame the tool for harming you.

So, it’s essential to plan your positions reasonably! Friends who are currently confused and lack direction in trading can follow me and join my exclusive chat room 22459567788 to get my latest strategies and detailed points!