The high leverage of a single trade and the leverage of total funds are two different matters.
When you see some people making trades with 20x or 50x leverage and making a lot of money, you might think that this person has too much leverage and will eventually get liquidated.
But is that really the case? Definitely not. You need to look at how much total capital this person has. For the same $1000 position, some people have 100% of their total capital at stake, while others have only 0.01%, or even less. So even if this person uses 100x leverage, it only means that 1% of their total capital is at play. Therefore, it is fundamentally not the same concept. Moreover, there will also be stop-loss orders, so the overall leverage is actually quite low.
What we need to do is not envy how much others are making; our first step is to assess our own strength, recognize ourselves, and understand ourselves. Treat the funds you have as your final troops; once they're gone, they're gone, so be cautious when deploying them. Set the risk level for each trade properly, allowing yourself to survive longer in this market.
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