Let’s talk about position sizing.
The position size calculated based on your stop-loss distance is unrelated to leverage. Leverage only affects how much margin is required, but you need to make sure the liquidation price is beyond your stop-loss.
Honestly, I only came to understand this next point later: before entering a trade, decide on three things—the stop-loss level, how much you’re willing to lose on the trade, and the position size calculated from those two.
Finally, a market update: $BTC Current price: 80916.01 (24h -2.39%).
Leverage amplifies your gains and losses, not your win rate. The higher the leverage, the less room you have for mistakes.
The position size calculated based on your stop-loss distance is unrelated to leverage. Leverage only affects how much margin is required, but you need to make sure the liquidation price is beyond your stop-loss.
Honestly, I only came to understand this next point later: before entering a trade, decide on three things—the stop-loss level, how much you’re willing to lose on the trade, and the position size calculated from those two.
Finally, a market update: $BTC Current price: 80916.01 (24h -2.39%).
Leverage amplifies your gains and losses, not your win rate. The higher the leverage, the less room you have for mistakes.