How Professional Traders Size Positions — The Exact Math
89% of futures traders are liquidated in their first month. Here is what the 11% do differently. When I first started, I treated leverage like a volume knob on a stereo—I thought cranking it to 50x was the only way to get loud returns. I lost $5,400 chasing ghosts in $BTC and $LINK because I didn't understand that leverage isn't a tool for profit; it is a tool for math-based suicide if your position size isn't calculated against your total account balance.
Think of leverage like driving a car. Your account balance is your seatbelt. If you drive a standard sedan at 60mph, you have control. If you strap a rocket engine to that same car, your margin of error for a sharp turn drops to zero. That is what happens when you open a...
Posted by 