Today I want to slam the table and say something true: 99% of the instructors out there are teaching you 'light positions and stop losses,' but no one tells you—poor people don’t go heavy, they will always struggle to turn things around!
1. Is going heavy = a fierce flood? That's because you're missing two things.
"Going heavy must lead to death"—I've heard this so many times. But the truth is: going heavy itself is not the original sin; the sin lies in your lack of technical support and mental resilience.
If the skills are lacking, going heavy is gambling.
After a fluctuation in vegetable oil, it breaks through and pulls back. This high-probability signal, do you dare to go heavy? Many people can't even draw trend lines clearly, can't distinguish between MACD golden crosses and dead crosses, and impulsively go all in—this is not going heavy, it's giving away money. The real big players calculate the fundamentals, capital flows, and stop-loss points clearly before going heavy. For example, Soros's attack on the pound relied on accurately capturing policy loopholes, not a gambler's mentality.
An unstable mindset will break in a second of volatility
Are you losing sleep over a 5% loss but thinking of running after a 10% gain? If you can't hold a light position, don’t even talk about heavy positions. Psychological research has long pointed out that the pain of loss is twice the joy of gain. This is why retail investors often 'run when they earn a little, but stubbornly hold on when they lose'—their mindset is dictated by instinct, so how can they blame heavy positions?
Two, the 'compound myth' of light positions might be the biggest scam
Many people boast that light positions can compound, but with a capital of 10,000, a 20% annual return takes 10 years to grow to 60,000—this doesn’t even beat inflation, so how can one talk about wealth?
The essence of light positions is 'exchanging time for safety', but what the market lacks most is not time, but opportunities. When a big market movement occurs, if you test the waters with a 5% position, even if it doubles, it is only a minor increase in total assets.
Ironically, light positions and trial-and-error lead to frequent trading. Stop-loss at 2%? After a few small losses, your capital is already worn out.
Three, think inversely: Why do big players dare to take heavy positions?
You are right: The essence of 'being greedy when others are fearful' is to look for opportunities against the crowd.
Opportunities are 'waited' for, not 'tested'
The market is mostly garbage time; real trending opportunities may only arise two or three times a year. For example, in the futures market, consolidation periods can account for over 70%, but once a key level breaks, the trend often shoots forward like an arrow. At this time, heavy positions offer much better odds than the usual light positions.
Risk control is not about position size; it's about discipline
Heavy positions ≠ no stop-loss! The essence of big players lies in: making a significant profit when they earn, and cutting losses swiftly when they lose. Set a hard stop-loss (like exiting at -5%), and even with heavy positions, single losses can be controlled. But retail investors? Stop-losses are just hanging on the wall, executed based on mood.
Four, the truth for small funds: If you want to turn things around, you need a 'heavy position mindset'
With a capital of 10,000 or 20,000, making a trivial profit in light positions for a year is not as good as saving in Yu'e Bao!
Concentrate your firepower for a decisive battle: Small funds must seize high win-rate opportunities to strike hard. Buying 10 different coins is not as good as doing in-depth research and betting on 1-2 coins.
Don’t be brainwashed by 'patience': The premise for compounding is that the capital is large enough. If you don’t dare to accumulate a base with heavy positions in the early stages, where will the profits for compounding come from later?
Heavy positions are not reckless; they are a calculated gamble after careful consideration. Light positions are not stable; they are self-comforting in confusion.
Fear of heavy positions essentially stems from a fear of being responsible for oneself—unable to admit when losing, unwilling to take gains.
If you are still losing money now, don’t rush to blame heavy positions:
First, ask yourself:
Has your trading system undergone backtesting?
Have you written down the stop-loss rules?
Can you endure a -20% drawdown in your account?
If the answer is all 'no', focus on improving your skills before discussing position size. If the answer is 'yes', don’t hesitate when the next opportunity arises!
The market always rewards a few, and those few dare to bet heavily when others are trembling. Follow Ake for more first-hand news and insights into the cryptocurrency market, becoming your guide in the crypto world; learning is your greatest wealth!#加密市场观察 #巨鲸动向 $ETH
