YOU SHOULD NOT LEVERAGE YOURSELF, THAT IS VERY DANGEROUS...

That is a fallacy, intelligent leverage is one of the best options to grow not only your futures account, but also your assets inside and outside the market.

We often hear that leverage is dangerous and that can actually be true but only if you don't know how to use it and you don't know what it was created for.

If you think that leverage was created to make you rich overnight, say goodbye to your money, but if you know what it works for and how to use it, welcome to the group of traders who are not afraid of 100X.

First, I am going to leave an example of how leverage works and then with some questions I will let you, as critical readers, draw your own conclusions.

EXAMPLE

The following traders entered short and cross-margined their portfolio.... (Which they also consider dangerous hahaha)

Jhon entered a short in BTC at 65,000 dollars with a position of 10 USD as leveraged margin at 125X, that is, the maximum possible on this exchange for BTC. Jhon left his Stop Loss at 66,300 (2% risk which unfortunately he touched because the asset rose).

Louis, for his part, also shorted BTC at $65,000 but with a larger position; 125 dollars of margin, and since he has heard that the leverage is very dangerous, he only went to 10X, also leaving his stop loss at 66300 (2% risk and which, also, unfortunately, he touched since the asset went up)

The purpose of this example is so that you can draw your own conclusions and not be influenced by clowns who do not know how to use it and do not understand that the key is in risk management, in the amount of X...

Answer the questions, draw your own conclusions and share them in the comments...

1. How much did Jhon lose and how much did Louis lose in dollars?

2. Who had the least cost to operate?

3. Who is smarter using leverage?

4. If both of their bills are 200 dollars, who risks more?

5. Who can diversify best?

AMTrading