There are always people showing profit screenshots on the forum—tens of thousands rolling into millions, luxury cars swapped in three days. The authenticity of these stories is hard to discern, but there is a way to make small money perform like magic in trending markets, while also being able to drop to zero your weekly profits in half an hour. Today, we will break down the most controversial operational method in this circle; newbies who understand it can save a lot on tuition.

Let's clarify what "leveraged compounding" means? Don't be fooled by the name; it essentially refers to a refined operation of trend-based position sizing. The core principles are: use 10% of your capital to test the waters and open a position, gradually increase your stake with floating profits once you identify a one-way market trend, and immediately cut your position if the market direction turns unfavorable. It's not about mindlessly going all in, but rather about planned position management.

This strategy is most suitable for the extreme volatility of the crypto market. During the market crash in May 2021, I knew a guy who started with a small investment, caught the downtrend, and added short positions in three waves, eventually making thousands of times his investment; in the 2022 algorithmic stablecoin collapse, there were also people who used this trick to achieve a class leap within 48 hours. But where is the key? — Trend judgment must be precise, and stop-loss discipline must be ironclad.

Want to give this a try? First, engrave three critical points into your mind. As a seasoned trader who has been watching the market for years, I've seen too many.