Everyoneโs heard the same advice:
"Leverage is dangerous, stay away!" โ
But the real issue?
๐ฅ Itโs not leverage โ itโs how and where youโre using it.
Letโs unpack this ๐
๐ Whatโs the Real Purpose of Leverage?
Leverage is a tool to amplify tiny price movements into meaningful gains.
Example: A 0.25% price shift on 20x leverage = 5% return ๐ธ
Small moves suddenly become trade-worthy.
And where do those small moves happen all day long?
๐ On 1-minute and 5-minute charts.
โ Why Leverage Destroys You on Higher Timeframes
Letโs be real:
A 2% stop loss with 15x leverage = 30% loss ๐ฅ
Trade lasts hours or days = exposed to random news, spreads, slippage ๐ฐ๏ธ
One wrong move = blown account ๐ฅ
High timeframes move slower โ but the risk builds up faster than you think.
โ Why Lower Timeframes + Leverage = Smart Money
Now flip it:
SL of just 0.1%โ0.3% = controlled risk
Trade done in minutes = quick feedback, less stress
Even a 0.15% move becomes worth it when leveraged
Dozens of quality setups = more opportunities daily
This is where leverage actually shines.
๐ต So Why Do Traders Keep Failing With Leverage?
Because they:
โ Jump into 50xโ100x blindly
โ Trade emotionally, not logically
โ Skip stop losses (fatal mistake)
โ Use big leverage on swing trades and get wiped out
Truth is โ leverage isnโt your enemy. Bad habits are.
๐ง How to Make Leverage Work FOR You
Stick to 1mโ5m charts only
Use tight stops (0.1%โ0.3%)
Keep leverage between 10xโ30x
Never risk more than 1% per trade
Trade a solid strategy โ not vibes.
๐ Remember This:
โ Leverage is powerful
โ Lower timeframes give more chances
โ ๏ธ But only when used together intelligentlyโ Donโt use 25x on a daily chart and blame the market
โ Use 15x on a clean scalp setup and execute with precision๐ฏ Trade smart. Use leverage with discipline. And stop playing with fire just to feel something.