Why do some people make a fortune with leverage, while others lose their principal to thin air? After 8 years in the industry and witnessing the ups and downs of thousands of trading accounts, I must speak honestly today: high leverage is never a monster; the real danger lies in the 'greed + foolish operations' that drive it!
Many people hear 'leverage' and run far away, as if it comes with a 'liquidation curse.' But you forget, when the market starts moving, a 5-point rise in spot prices combined with the right direction of high leverage can directly double your returns — this is not luck; it is the mathematical effect of leverage, a 'super bonus' for those who understand the market.
But why do some people always shout 'leverage is harmful'? To put it simply, it's not that leverage is too harsh, it's that people are too eager for quick profits. I've seen too many ridiculous operations: not setting stop-losses and stubbornly holding on, turning 'trading' into 'gambling'; getting emotional with minor market fluctuations, blindly increasing positions, and losing more; claiming 'steady investment' while not even understanding basic risk control—this isn’t called trading, it’s called giving money to the market!
As an analyst who deals with K-lines every day, I can confidently say: wanting to make money with high leverage is never about 'luck', but about three iron rules—this is the real deal, remember it and you can cut your losses in half! First, be accurate in your judgment: only act when the trend is clear, don’t guess the top or bottom, and never stubbornly hold leverage in a fluctuating market; if the trend is wrong, exit immediately without any hope. Second, be steady in your actions: build positions in batches, don’t go all in at once, leave enough buffer space in your account, even if the direction is wrong, there’s still room for maneuver. Third, be ruthless with stop-losses: set a fixed stop-loss percentage, cut losses if it’s breached, don’t 'romance' the market; remember: preserving your principal is essential to have another chance to make money.
In fact, leverage is essentially a 'magnifier'—if you have clear trading logic and strict risk control, it magnifies your profits; if you have no principles and are driven solely by greed, it magnifies your losses. I've seen people steadily profit using 10x leverage, and I've seen people blow up their accounts daily with 3x leverage. The difference lies not in the leverage multiplier but in whether one knows how to use it.
Don't think of leverage as an 'Tsundere Assistant'. If you understand its temperament, it will help you with your tasks; if you give blind commands, it will ruin you. It does not favor anyone, only rational and rule-abiding traders.
Market conditions are ever-changing, and the next big opportunity might be tomorrow! Follow me for timely notifications on market movements, helping you grasp leverage logic and avoid 90% of pitfalls, earning clearly and rationally. After all, who doesn't want to earn excess returns while lying down, rather than crying as their account goes to zero? Hurry and follow, so you don't miss out next time the market starts!
