𝐖𝐡𝐲 𝐇𝐢𝐠𝐡 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐃𝐞𝐬𝐭𝐫𝐨𝐲𝐬 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐬 (𝐀𝐧𝐝 𝐖𝐡𝐞𝐧 𝐈𝐭’𝐬 𝐀𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝐔𝐬𝐞𝐟𝐮𝐥)

High leverage attracts most traders because it promises fast profits with small capital. The problem is that leverage magnifies mistakes faster than it grows gains. A small move against your position can wipe out weeks of progress in minutes.

Most accounts get destroyed because traders use high leverage without proper structure. They enter trades based on emotions, use tight stop losses, or no stop loss at all. With high leverage, even normal market noise becomes a liquidation trigger.

Another issue is psychological pressure. When leverage is too high, every candle feels stressful. Traders panic, close trades early, or add to losing positions. This emotional trading leads to bad decisions and repeated losses.

Professional traders use leverage very differently. They only apply it when the setup is extremely clean, risk is clearly defined, and the invalidation level makes sense. Even then, they keep position size controlled so one loss doesn’t hurt the account.

High leverage is a tool, not a strategy. Used without discipline, it destroys accounts. Used carefully with experience, patience, and strict risk management, it can enhance returns instead of ending a trading journey early.