Is trading just gambling?
Many friends often go for 10/20/50 times,
even 100 times; money just goes in, and in one night, they get liquidated!
There are two types of people who open high leverage:
First: those who like to take big risks with small amounts, enjoying gambling for high stakes!
Second: there are also newcomers who don’t know how to operate or plan their positions, and they end up finishing before they even start playing contracts!
Position management is very important when trading contracts, maximizing capital efficiency,
and avoiding personal risks.
How to manage positions scientifically in contracts?
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 a stop-loss of 1%-3%,
using 10% of your funds to aim for 100% returns, while keeping losses manageable.
If you use 10,000 at 10 times or 10,000 at 20 times...
a single market movement could wipe you out, with no margin for error or trial-and-error capital, making it easy to lose everything and distort your mindset!
Using high leverage to borrow funds exceeding your own capital for speculative activities, liquidation is common, while making profits is rare. If you want to trade contracts, first understand the basics, such as leverage multiples and funding rates; if you know nothing and get liquidated, you can’t blame the tool for harming you.
So, it’s essential to plan your positions rationally!
Recently, I have been arranging for great trades; leave a comment '1' to help you get on board in this bullish market
