1. Position Size = Your "Pricing" Judgment

Position size essentially reflects how much risk you are willing to bear for a single judgment.
• Heavy Position → Means you are extremely confident, but the market is fundamentally a probability game. Even if you are correct in a single trade, long-term success can be shattered by one mistake.
• Light/Distributed Position → Acknowledges uncertainty, uses position management to leave room for error, and lasts longer.
• Heavy Traders → Either expand rapidly or go to zero quickly; the latter is more common, and their mindset tends to become extreme.
• Rational Position Holders → Asset curve rises steadily, maintain a stable mindset, and can continue learning and iterating.
2. Leverage is just an amplifier, it does not change win rate or expectation
Leverage itself does not improve your trading skills; it only:
• Amplifies profit and loss speed
• Amplifies emotional fluctuations (greed and fear)
• Increases liquidation risk (especially in contracts)
If you do not have a positive expectation trading system, leverage will only make you die faster.
If you have a positive expectation system, excessive leverage can also lead to early exit due to drawdowns or black swan events.
3. The Relationship Between Leverage and Position Size
• High leverage ≠ necessarily large position size (you can have high leverage but open a small position, which is equivalent to low leverage with a heavy position)
• The real source of risk is the combined risk exposure of “position as a proportion of total funds × leverage multiplier.”
Many people mistakenly believe that “low leverage is safe,” but even with 2x leverage, if you open a position at 50% of your principal, the actual risk exposure is similar to opening a 10% position with 10x leverage.