$PIPPIN At two o'clock in the morning, the phone suddenly rang nonstop.
A friend from Shanghai sent voice messages in a clearly panicked tone:
"Sister Xi, I opened a long position with 10x leverage using 10,000 U in full margin, why has my money disappeared after a 3% retracement?"
I looked at his trading record:
9500U almost fully invested, 10x leverage, no stop-loss.
$BEAT Many people mistakenly believe that full margin = safety, able to withstand volatility,
But the reality is exactly the opposite——
Using full margin improperly can lead to faster losses than using partial margin.
The decision to blow up or not has never been about leverage multiple,
But rather how much principal you bet in one go.
$LIGHT It's the same with 10x:
900U opened, a 5% reverse would wipe it out;
100U opened, it would require a 50% reverse to blow up.
His problem isn't being wrong about the direction,
But putting 95% of his funds into the market all at once,
Leaving no margin for error for any normal retracement.
I also use full margin, but I have three iron rules:
① Single position ≤ 20% of total funds
② Single loss ≤ 3% of total funds
③ No opening positions during fluctuations, no increasing bets when profitable
The meaning of full margin is to leave room for fluctuations,
Not to gamble with your life.
In this market,
It’s not about who makes money faster,
But about who can survive longer.
If you have ever hesitated between "full margin" and "holding a position",
Perhaps the problem isn't that you misjudged the direction.
—— Sister Xi