What is the result of heavy betting in futures?

Mondo Finance Updated on 2024-01-31

Let's first take a look at what is called heavy position. **In the market, there is a margin system, and now the margin for each symbol is different, about 8% to 20%. We take the median, say, 15% margin. If you're full**, you're probably using seven times the leverage. That is, you use seven times your overall bankroll. Go for one of the varieties you see fit. If you do it right, and it's a board, then your bankroll will probably double, or you may lose it all. If these funds incur losses in your daily life, then you can't afford it, and this is a heavy position.

Let's analyze the main reasons for heavy positions. Basically, it can be summarized in this way, the heavy position is due to the fact that you have no confidence in the market, are afraid of losing opportunities, and do not know whether you will make money in the future for your own technology and psychology. The whole process is chaotic.

Let's look at the ending of the heavy position. And after the real heavy position is entered, even if you have made a reasonable operation plan before, because the heavy position will make your adrenaline secretion serious. People are probably in a state of uncontrollability. So the probability of the plan being perfectly executed is greatly reduced. The position of the take profit cannot take profit, and the position of the stop loss cannot be stopped. This ultimately leads to large losses. You can't explain to yourself, you can't explain to your family, and in the end, when your funds can't support you to continue to operate like this. Reluctantly withdrew from the market. This is the end result for most people.

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