How did a 17-year-old young man flip 1,000 yuan to 1,000,000 yuan in 7 days?
In the currency circle, the name Liang Xi shines like a legend. With a capital of 1,000 yuan, he actually made an astonishing 10 million yuan in one week, which is jaw-dropping. So, how did this talented young man do it?
By deeply observing Liangxi's actual operation, we can discover the secret. His trading frequency reached an astonishing 1,454 times per week, with an average of 207.7 transactions per day and as high as 8.65 per hour. Such high-frequency trading makes us speculate that the contract he operates should be a five-minute short-term contract or a perpetual contract. This trading model enables transactions to be completed in a very short period of time, thereby greatly reducing the risk of being liquidated due to insufficient margin.
However, high-frequency trading also means that the return on a single transaction is relatively low. In order to make up for this shortcoming, Liang Xi cleverly used high leverage to amplify profits. He uses the rolling income to generate compound interest, allowing funds to rapidly increase in value in a short period of time.
Suppose we make a contract with fifty times leverage, and the price fluctuates by 1.16% each time we make a right, then the rate of return can reach 58%. If you make twenty short-term trades correctly in a week, the final profit will be astonishing. Such trading frequency and leverage ratio are undoubtedly unattainable for most people.
Liang Xi once revealed that he would withdraw his income within a fixed period of time, so that he would use very little funds to conduct high-frequency leverage transactions each time, ensuring the stability and safety of his income. However, although Liang Xi’s story is heart-warming, we still want to remind everyone not to blindly follow her example.
High-frequency, high-leverage contract trading is undoubtedly a high-risk game for most people. Although Liangxi made huge profits with 100 times leverage during last year's market crash, this small-scale operation requires extremely high operating skills and keen market insight. Once you encounter adverse market conditions, you may face huge losses.
Therefore, we recommend that everyone treat contract transactions with caution and do not attempt high-risk operations easily.In the currency circle, prudent investment and rational trading are the long-term solutions. For those who are new to the currency circle, they should stay away from contract transactions to avoid falling into a situation of no return.
