Suppose you open a trade with $1,000 margin and 5x leverage. Your total position size becomes $5,000.
One common mistake many of us make is thinking that a $5,000 position must generate $5,000 in profitâor even more. Many traders think this is impossible.
But in my opinion, a smarter approach is to set realistic profit targets. If you can make a profit equal to 50% of your margin, consider closing the trade and securing your gains.
When greed takes over, you waste more time and expose your money to greater risk. The longer you keep your money exposed to the market without a clear plan, the more opportunities the market has to take it away.
Remember: The goal is not to make the maximum profit from every trade. The goal is to protect your capital and stay in the game. đŻ
