Stop blaming high leverage for your losses! The real culprit is your own gambling mentality!
Yesterday I talked on the phone with Xiao Li, and his voice was hoarse: "500,000 principal, 3 times leverage on ETH, and in three days it dropped to 20,000! High leverage is a trap!"
I didn't argue, but I knew in my heart: what trapped him wasn't leverage, it was his own reckless behavior!
I used to be afraid of leverage, thinking "the higher the multiple, the more dangerous it is," holding onto spot and watching others make money with 10 times leverage, while I could only slap my thigh.
Until last year, when I followed Lao Zhou to trade BTC, I was completely overturned: when the market started, the spot rose by 5 points, he made a direct profit of 50% using 10 times leverage, while I only got a small taste!
I asked him, "Aren't you afraid of liquidation?" He pulled out his trading records: before opening a position, he always drew trend lines, only entering the market when the daily EMA30 was stable, and setting stop losses as soon as he opened a position, cutting losses at 5% and locking in half of the profit at 20%!
"Leverage is a magnifying glass," he said, "if you have a method, it magnifies profits; if you act recklessly, it magnifies losses!"
Xiao Li's problem was the same as mine back then: opening positions recklessly without looking at the trend, daring to go all in with 3 times leverage, hoping for a rebound after losses, never setting stop losses, and making random trades when emotions ran high, which is no different from gambling!
While Lao Zhou used 10 times leverage but was steadier than spot trading, the core was three points:
1. Accurate judgment: do not touch ambiguous markets, only trade confirmed trends on the daily chart;
2. Steady execution: wait for a pullback to the support level before entering, never chase after rising prices;
3. Ruthless stop loss: the stop loss line is fixed, even if there is a spike, no regrets!
If you can achieve these three points, high leverage is a wealth accelerator; if not, even 1 times leverage can wipe you out!
Now I also use 8 times leverage, and my account is becoming increasingly stable. In this market, there will always be people blaming leverage for losses, yet they refuse to admit they are overly eager for quick profits, lack a method, and can't maintain their mindset.
In fact, leverage has never been the enemy; it's a tool—just like a kitchen knife, it can cut vegetables or cause harm, it all depends on whether the person holding the knife understands how to use it!
The market is about to move, don't hide just because you hear about high leverage, and don't blindly go all in!
First, refine your trading logic and maintain your mindset, and when the next market opportunity comes, let leverage work for you to make money, instead of being harvested by it! @阿二说币
