⚡️ Leverage: The Key to Wealth or the Fuse for Disaster?

Leverage trading can amplify profits, but it can also quickly destroy your capital. Learn how to use leverage correctly to avoid losses!

💡 What is Leverage?

Leverage allows you to borrow money to amplify trades. If you have $100, with 10x leverage, you can control a $1,000 trade, but both profits and losses will be magnified.

🚨 Why Do Most People Fail?

High leverage may seem like a quick way to get rich, but a small fluctuation can cause you to lose all your funds instantly.

⚔️ Use Leverage Wisely

Choose Low Leverage (1-5x)

Using 2-3x leverage avoids excessive risk.

Set Stop Losses

Not having a stop loss is equivalent to gambling; always protect your capital.

Understand Liquidation Points

Be clear about when you will be liquidated to avoid excessive risk.

Control Risk for Each Trade

Risk for each trade should not exceed 1-2%.

Only Use Leverage in Strong Markets

Avoid using leverage in uncertain markets.

🧘‍♂️ Summary: Leverage is a Tool, Not Magic

Beginners should avoid high leverage; learn the basics first, build strategies, and control emotions to achieve long-term profits.