Position sizing is the only variable that matters. Everything else is noise.
Run 3-5 positions at 5% risk each on 20x leverage. Max drawdown across all positions: 15% if you cut and re-enter. Daily P&L swings: 20-30% on winning days.
Example: $1,000 account, 10x leverage, $50 position ($500 notional). Price moves 10% against entry = -$50 loss = 5% account drawdown. Price moves 50% against entry = -$250 loss = 25% drawdown. Account still operational. Liquidation requires asset approaching zero.
No stops, but strict per-trade risk enforcement. Cut and re-enter on adverse moves instead of holding through drawdowns.
Every blowup traces back to breaking risk per trade. Market excitement drives position stacking. Win = profit. Loss = account reset and emotional damage.
If account size is sub-$500, you're trading for entertainment, not returns. Earn offline, return with capital you respect.
Timeline to profitability: 12+ months minimum for most traders.
Core thesis: Risk management > strategy selection. Leverage and account size are irrelevant if position sizing is disciplined.
Run 3-5 positions at 5% risk each on 20x leverage. Max drawdown across all positions: 15% if you cut and re-enter. Daily P&L swings: 20-30% on winning days.
Example: $1,000 account, 10x leverage, $50 position ($500 notional). Price moves 10% against entry = -$50 loss = 5% account drawdown. Price moves 50% against entry = -$250 loss = 25% drawdown. Account still operational. Liquidation requires asset approaching zero.
No stops, but strict per-trade risk enforcement. Cut and re-enter on adverse moves instead of holding through drawdowns.
Every blowup traces back to breaking risk per trade. Market excitement drives position stacking. Win = profit. Loss = account reset and emotional damage.
If account size is sub-$500, you're trading for entertainment, not returns. Earn offline, return with capital you respect.
Timeline to profitability: 12+ months minimum for most traders.
Core thesis: Risk management > strategy selection. Leverage and account size are irrelevant if position sizing is disciplined.
