š§Ø Leverage Trading Will Humble You (If You Let It)ā¼ļø
Letās be real.
Most people jump into leverage trading with hype, not a plan.
So letās break it down ā¬ļø
š§® What is Leverage Trading?
It means you're borrowing funds to trade a bigger position than your capital allows.
For example:
ā 2x leverage = 2x exposure
ā 10x leverage = 10x exposure
More gains? Yes.
But also 10x the risk.
š” Why Use Leverage?
ā To trade big with small capital
ā To scalp fast moves
ā To make serious profits in low-volatility zones
But guess what? Most beginners donāt realize thatā¦
š„ Liquidation Price ā Stop Loss
The liquidation point isnāt there to protect you.
Itās there to protect the exchange.
They donāt want to lose money on your bad decisions. š
Thatās why the first skill in leverage trading is not TA⦠itās RISK MANAGEMENT.
š”ļø Risk Management Rules You Must Live By
ā Always use a Stop Loss (SL) ā even a bad one is 1000x better than none
ā As your leverage increases, your SL must tighten
ā Be greedy with your stop loss, not your entry
ā Donāt risk more than 1ā2% of your capital per trade
ā TP = Just as important as SL. Secure profits. Always.
š Most new traders think āIāll just watch it, I donāt need a stop loss.ā
But when the market moves fast⦠itās already too late.
If youāre not protecting your capital, youāre just feeding the market.
šÆ Leverage is a weapon.
If you donāt respect it ā it will turn on you.
š¬ Are you trading with leverage? Whatās your go-to SL % or rule?
#LeverageTrading #CryptoRisk #CryptoEducationš”š #BinanceFeed