People do not understand how and when to properly use leverage, and the trend is to demonize this tool when they do not know how to trade and lose. This liquidation would have been the same without having leveraged.
Part of my trading strategy is to use high leverage; all my trades are almost always leveraged at X50 or X75, and last Friday I decided to use 65 dollars to trade futures, ending Sunday with 430 dollars.
I only use between 0.1% and 1% in each trade; this is what protects me from large losses, and I use leverage as a tool to artificially increase my capital, allowing me to have multiple trades open at the same time, normally between 5 and 10 trades, in tokens that allow me to have a more or less clear reading of the market while studying the movements in each entry.
This does not mean that I do not lose money; many of the trades go wrong and hit my SL. I just have to ensure that most of the trades do not go wrong, and my profit percentage will be guaranteed.
Most of those who have been liquidated with tokens like $PIPPIN have done so by going against the market trend and staying there waiting for the reversal.
$PROMPT liquidated many accounts this weekend because the drastic rise it had made many think it was going up, but a little attention to the chart showed that the trend was bearish, which allowed me to gain quite well, even when the movements were very slow and also protected with a fairly high margin by using a minimum of capital in the trades.
Keep in mind that using half of your capital in an entry without leverage is as risky as using 1% of your capital with leverage at X50.
Properly formulate your trading strategy, and you will see that leverage can be a tool that works for you.
Success and let's go for it!!!


