Calculating losses matters more than guessing the direction #AnthropicQ2RevenueRoseOver14Fold $ACE
Even if you get the direction right, if your position sizing is out of control, a normal fluctuation can wipe out your account. Whether your judgment is correct is secondary—the crucial thing is how much loss you can control. Before placing a trade, think clearly about how much loss you can accept; once you hit that level, exit immediately—don’t hesitate. Using 10x leverage with a small position and using 50x leverage with a smaller position may result in nearly the same actual risk. The real factor that destroys an account is never the multiple itself, but the proportion of your position. Keep your losses within a range you can tolerate, and only then do you have the right to talk about profits. Only those who can control losses deserve to trade long-term. Work out the numbers before acting—it’s more useful than obsessing over leverage. $AKE
Even if you get the direction right, if your position sizing is out of control, a normal fluctuation can wipe out your account. Whether your judgment is correct is secondary—the crucial thing is how much loss you can control. Before placing a trade, think clearly about how much loss you can accept; once you hit that level, exit immediately—don’t hesitate. Using 10x leverage with a small position and using 50x leverage with a smaller position may result in nearly the same actual risk. The real factor that destroys an account is never the multiple itself, but the proportion of your position. Keep your losses within a range you can tolerate, and only then do you have the right to talk about profits. Only those who can control losses deserve to trade long-term. Work out the numbers before acting—it’s more useful than obsessing over leverage. $AKE
