Thinking of entering now? First, run the numbers on three things:
① Whether you’ll need this money in the short term;
② How much you could lose at most if you’re wrong;
③ Whether it’s still worth it after fees and slippage.
For example, a risk budget of 1,000 yuan doesn’t mean you should buy 1,000 yuan worth—it means the maximum you can afford to lose on the entire trade is 1,000 yuan. The wider your stop-loss distance, the smaller your position should be; a price gap could also make your stop-loss ineffective. Don’t use leverage to turn a trial position into a bet.
① Whether you’ll need this money in the short term;
② How much you could lose at most if you’re wrong;
③ Whether it’s still worth it after fees and slippage.
For example, a risk budget of 1,000 yuan doesn’t mean you should buy 1,000 yuan worth—it means the maximum you can afford to lose on the entire trade is 1,000 yuan. The wider your stop-loss distance, the smaller your position should be; a price gap could also make your stop-loss ineffective. Don’t use leverage to turn a trial position into a bet.