Why do high-leverage accounts get destroyed? (And when is it really beneficial?)
Most traders are drawn to high leverage because it promises quick profits with low capital. But the reality is that leverage magnifies mistakes many times faster than profits. Even a slight market movement can wipe out weeks of hard work in just a few minutes.
Most accounts fail because traders use high leverage without a strong plan. Entering trades impulsively, placing very tight stop losses, or not placing stop losses at all — all of these in high leverage turn regular market noise into liquidation.
Another major issue is psychological pressure. When leverage is too high, every candle looks scary. The trader panics, closes trades quickly, or adds more to losing positions. These emotional decisions repeatedly lead to losses.
Professional traders use leverage in a completely different way. They only increase leverage when the setup is absolutely clean, the risk is clear, and the invalidation level is logical. Yet, they keep position sizes controlled so that a loss does not harm the account.
High leverage is not a strategy, it is just a tool.
Use without discipline and your account will be finished.
If used with experience, patience, and strict risk management, this tool can improve returns — rather than cut your trading journey short.
👉 What leverage do you trade on? And why?
👇 Share your thoughts in the comments
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