$BTC The Curse That Became a Blessing: How Leverage Transformed My Trading Approach
I once viewed leverage as a shortcut to wealth—a powerful accelerator rather than a risk. With confidence bordering on arrogance, I regularly traded using 20x leverage, convinced I had mastered the market.
One evening, I secured a 300% profit in under an hour. It felt extraordinary, as though I had unlocked a secret formula. I attributed the success to “skill” and believed I was invincible.
But the market is indifferent to confidence.
The following week, a modest 2% price movement erased my entire position. In a matter of seconds, I went from feeling like a market expert to facing complete loss. What hurt most was not the capital—it was the collapse of the illusion that I was in control.
That moment became a pivotal turning point.
I began to treat leverage with the seriousness it warrants—comparable to a sharp tool in untrained hands. Even seasoned professionals are not immune to its dangers. This insight led me to adopt a structured and disciplined approach to trading, guided by the following principles:
Maximum leverage: 5x, even for seemingly certain trades. If the setup is truly strong, excessive risk is unnecessary.
Never go all-in, regardless of confidence. Even flawless setups can fail.
Profit allocation is essential: 50% is withdrawn immediately, 30% allocated to long-term holdings, and only 20% reinvested into high-risk trades.
These adjustments changed my entire outlook. I transitioned from trading for excitement to trading for longevity.
In hindsight, that painful loss was a valuable teacher. It conveyed lessons no bull run or online influencer could offer: leverage is not a path to wealth—it is a reflection of one's discipline.
Used carelessly, it's a curse. Used wisely, it’s a tool for growth, patience, and sound risk management.
Leverage didn’t ruin me. My ego did. But from that pain emerged lasting insight—and, eventually, real profit.
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