Let’s talk about position management.
Position size calculated based on stop-loss distance is unrelated to leverage. Leverage only affects how much margin is tied up, provided the liquidation price is beyond the stop-loss price.
One easily overlooked point: the larger the drawdown, the harder it is to recover. After losing 50%, your remaining funds have to double just to get back to where you started.
After a string of losses, reduce your position size or take a break. Don’t increase your position to try to win it all back in one go.
Coin mentioned in the article: $BTC ; current price: 81542.87 (24h: -0.68%).
Position size calculated based on stop-loss distance is unrelated to leverage. Leverage only affects how much margin is tied up, provided the liquidation price is beyond the stop-loss price.
One easily overlooked point: the larger the drawdown, the harder it is to recover. After losing 50%, your remaining funds have to double just to get back to where you started.
After a string of losses, reduce your position size or take a break. Don’t increase your position to try to win it all back in one go.
Coin mentioned in the article: $BTC ; current price: 81542.87 (24h: -0.68%).