📘 Trading Lesson 8: Leverage – The Double-Edged Sword ⚔️

Leverage lets you control big positions with small capital. Sounds exciting, right? But be careful — it can multiply gains and losses.

📊 What Is Leverage?

Leverage = Borrowed funds to increase your position size.

Example: 10x leverage on $100 = $1,000 trade size.

🔥 Why Traders Use It:

✅ Bigger potential profits

✅ Small capital needed to enter trades

⚠️ The Risks:

❌ Higher chance of liquidation

❌ Even small price movements can wipe your position

❌ Increases emotional stress (and bad decisions)

🧠 Pro Tips for Using Leverage:

✅ Start with low leverage (2x–5x)

✅ Always use a stop-loss

✅ Never go all-in — protect your capital

💬 “Leverage is power in the right hands… and poison in the wrong ones.”

Next up: Lesson 9 – Journaling & Self-Review 📓🔍

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