The #1 trap for new futures traders: treating leverage like a profit multiplier.
50x leverage sounds amazing — a 10% move doubles your money. But a 2% move against you liquidates everything. BTC easily moves 2% intraday.
Traders who survive long-term typically use 3-5x leverage with strict stops. Leverage is a magnifier, not a generator. It amplifies good strategies and destroys bad ones just as fast.
If you must try futures, start at 3x, always set stops. Surviving matters more than early gains.
50x leverage sounds amazing — a 10% move doubles your money. But a 2% move against you liquidates everything. BTC easily moves 2% intraday.
Traders who survive long-term typically use 3-5x leverage with strict stops. Leverage is a magnifier, not a generator. It amplifies good strategies and destroys bad ones just as fast.
If you must try futures, start at 3x, always set stops. Surviving matters more than early gains.