In fact, in many cases of "high leverage" transactions, the people who suffer the most are often not those who have an average investment level and lose money at the beginning of investment, but those who think that their investment level is very high and have tasted the sweetness of "high leverage". Because the latter doesn't know how to get away with it, even after the position is broken, they will fantasize about "good time", and then frantically try to turn over the books, even ending in fiasco.
"The position is too heavy and belongs to the category of excessive trading. This is the main reason for short positions. The leverage ratio is large, and the ability to resist risks is naturally poor. Its psychological evil influence is the idea of quick success and quick success, and the way to avoid it is to be light and small, and the water will flow forever. " The above-mentioned insiders analyzed that.
After a painful lesson, Mr. Jiang finally dared not step into the "foreign exchange speculation door". However, in his spare time, he is still interested in leveraged trading. Occasionally, he will invest some money in precious metal futures to make small profits, but he never dares to use trading leverage of 200 times or 400 times.
In Mr. Jiang's view, highly leveraged investors are like "pedestrians with heavy burdens on their shoulders", and a slight obstacle on the road is enough to make them fall. The fundamental reason is that his position has exceeded his affordability, and refusing to lose money and not knowing how to stop loss are the direct reasons for his bad trading mentality.
Compared with the stop loss in other investment markets, the stop loss in highly leveraged transactions such as foreign exchange and futures is more important.