When it comes to the words "high leverage", many people instinctively shake their heads — too risky, it will definitely blow up.
But what is the truth? High leverage itself has no original sin; the problem lies with those who do not know how to use it.
When market sentiment is high, spot prices can rise by 5%, and high leverage can directly double the returns. This is not some mysterious science; it is purely a mathematical game. Only by daring to amplify can one reap huge profits. The problem is that the vast majority of traders simply cannot control this double-edged sword.
Why do liquidations happen?
It’s not because the leverage is too high, but because human nature is too impulsive.
Not setting stop-losses, adding positions recklessly, getting emotional, operating fiercely like a tiger, and in the end, the account is left with only two lines of tears. I’ve seen this too many times — some people claim to operate steadily, but in reality, they never set stop-loss lines; some think about flipping positions quickly, their mindset is even more erratic than the candlesticks. This is not trading at all; it is clearly gambling.
Want to turn the tables with high leverage? You can, but you must have an ironclad discipline.
Be clear on the direction, keep your hands steady, and be ruthless with stop-losses. If you can do these three points, high leverage will be your wealth accelerator; if you cannot, it will be your grave.
To put it bluntly, leverage is just a magnifying glass. If you have clear trading logic, it amplifies your profitability; if you have no logic, it magnifies your losses. Some people make steady profits using 10x leverage, while others blow up every day using 3x; the difference lies in "who is using it and how it is used".
Therefore, don’t be scared to death when you hear leverage, and don’t get overly excited and go all in. Understand the market trends, maintain your trading mindset, and leverage can make you money, rather than directly costing you your life. $ETH #合约爆仓
