Why is it so easy for a small position to create "miracles"?

Answer: Because it's small enough that you can operate it calmly and rationally without any emotion.
For example, the two charts below show the same trend.
If it's an ant-sized position, then adding to the position on a pullback with floating profits and holding until the trend breaks is perfectly normal—nothing special. In the end, it's just a small position that generates a large profit, with an absurdly high risk-reward ratio, making it look like a divine feat. #Gate股票转仓功能上线
But if the position is heavy—say, several thousand dollars at tens of leverage, or tens of thousands of dollars at tens of leverage—the mindset will likely turn into the second chart. Facing a large drawdown, very few people can remain calm. But if you cut once at the low, your mindset will almost certainly go wrong. After repeating this a few times, there's a good chance you'll flip to shorting, and eventually, all the profit from the initial long will be wiped out, plus you'll lose a large amount on the short, and you might even stop out near the top.
Going from 10u to 100~200u is as easy as breathing.
Going from 100~200u to 1,000~2,000u is also simple.
From 2,000 to 5,000, it starts getting harder. #Circle股价重挫17%
From 5,000 to 10k, the difficulty increases again.
From 10k to 20k, 20k to 50k, 50k to 100k—it looks like just a 1x increase, but in practice, it's completely different.
There are many traders who go 3x, 30x, or 300x in a day, but after a year, those who can keep their initial capital at 3x are as rare as phoenix feathers and unicorn horns.
So what if you know the techniques? Can you read a candlestick chart? In the end, facing the most primal human nature—fear and greed—you will always lose. High leverage can create超高 returns, but it can also cause massive drawdowns. Profit and loss come from the same source.
Only under one condition can you create high returns over the long term: when you don't treat money as money. $BTC
But this itself is a paradox. If you truly reach the point where money is nothing—a 24K pure dragon person—then that person shouldn't be in the crypto market...
After all, compared to the uncertainties of gambling in the market, using power to output anything or starting your own project offers much higher returns than fighting here.
Once you understand this, you can grasp how the super-high returns you see are created. As for the same-exchange, different-account hedging and cross-exchange hedging done just to show off high returns—that's another story.