In the field of financial trading, a common phenomenon has puzzled many: why can the same trading logic be profitable with small amounts of capital, while it may lead to losses when dealing with larger amounts? The answer to this question actually lies in two key points: small amounts of capital tend to seek quick returns through speculation, while large amounts of capital focus more on preservation of value and compound growth; when the scale of capital expands by 10 times or 100 times, trading strategies need to be completely restructured, rather than simply optimized.

This difference is mainly reflected in the so-called 'threshold effect', where the amount of capital directly affects the trader's decision-making courage. We often underestimate the impact of capital size on our own mindset, especially in response to potential losses.

Taking personal experience as an example, when the capital size was 5000 USDT (early 2022), I was able to confidently open a 10x leveraged short position on Ethereum. Even if a stop-loss was triggered, I could remain calm, as the worst-case scenario would only be losing half a year's salary, which was psychologically acceptable. At that time, while trading Solana, even if I lost 500 USDT in a single trade, I was still able to decisively enter the market the next day according to my established strategy, maintaining my execution at the highest level.

However, when the funds grew to 500,000 USDT (mid-2023), my mindset underwent a fundamental change. At one point, I opened a 200,000 USDT position in Bitcoin (accounting for 40% of the total funds), and when the price approached the stop-loss point, I hesitated for a full 8 minutes while staring at the price movements. My brain involuntarily calculated: this potential loss of 20,000 USDT was equivalent to the value of half a square meter of property in my hometown or my brother's tuition for half a year. It was this brief 8 minutes of hesitation that led to a further drop in price by 3%, ultimately expanding the loss to 60,000 USDT.

This experience made me realize that as the scale of funds increases, the reference for 'unrealized losses' in real life becomes increasingly specific, which directly affects the decisiveness of trading decisions. The 'decisiveness' displayed with small funds is not true capability, but rather because the risk cost is relatively low; the 'hesitation' at large funds stems from concerns about greater losses.

Therefore, when there are significant changes in the scale of funds, traders need to reassess and adjust their trading strategies and risk management methods to adapt to the new funding environment and psychological pressures. This involves not only technical analysis and capital management but also strengthening psychological development, cultivating decision-making abilities and risk tolerance that align with the scale of funds.