6iilang

Trading with a margin above 1–5% of total capital is very risky and can have serious consequences for traders, especially those who are inexperienced. Here are some of the dangers:

1. Rapid Capital Loss Risk
The larger the margin used, the greater the potential loss.

Even small market movements can quickly deplete capital if leverage is too high.

2. Margin Call and Forced Liquidation
If the market moves against your position, the broker may issue a margin call (request to add funds).

If not fulfilled, your position can be automatically closed (forced liquidation), resulting in significant losses even before you have a chance to react.

3. Disturbed Psychology
High leverage makes trading very stressful.

The fear of losing money can disrupt decision-making and make traders easy to panic or overtrade.

4. Overconfidence and Gambling Mentality
Large profits from high margins can create an illusion of greatness and trigger greed.

Traders start to act like gamblers, not rational market analysts.

5. Difficulty in Long-Term Survival
Aggressive trading with large margins may provide temporary gains, but rarely lasts in the long term.

Consistency and risk management are far more important in trading.

Recommendation:
Use a maximum margin of 1–5% of total capital per position to keep risk controlled.

Focus on strategy and discipline, not on the size of potential quick profits.

If you want, I can help create a margin risk simulation table too. Want?