Before your portfolio is destroyed
Avoid trading with leverage before it destroys your portfolio
Many traders believe that leverage is a shortcut to quick wealth, but it is actually one of the fastest ways to lose everything. Let's simplify the reality of trading with leverage.
What is leveraged trading?
Leverage allows you to borrow money from the exchange to trade with a capital greater than what you actually have.
Example: With only $100 capital and 10x leverage, you control a position worth $1000.
Does this sound strong? Here's the danger...
The hidden danger of leverage
A small move in the wrong direction can wipe out your entire account. This is called liquidation.
In spot trading, your asset value can drop by 90% and then recover.
With leverage, even a -5% drop can lead to the liquidation of your position.
No time to wait - once liquidated, your money will be lost.
A better strategy: gradual growth, strong growth
The real path to wealth in trading is as follows:
$100 → $1000 → $10,000 → $100,000 → $1,000,000 → $10,000,000
It takes time, discipline, and smart decision-making.
5 essential habits for long-term trading success:
1. Start with small steps - prioritize learning over profits at first.
2. Avoid leverage - especially if you are still gaining experience.
3. Use stop-loss orders - protect yourself from significant losses.
4. Take profits regularly - don't be greedy. Keep your gains.
5. Study daily - learn market patterns, price movements, and news.
Conclusion:
Leverage is not necessary for success. What you really need is patience, discipline, and perseverance.
Grow your account gradually. Protect your capital. Trade wisely.