**Hook:** Why leverage is your enemy

I've seen traders go bankrupt over leverage because they couldn't see the risk in their positions and let it sink their ship.

Imagine a trader taking on $10k of potential gains while trading a stock with a 20% loss rate, just to cover a 5% trade. They'd be in big trouble before they even set foot on the market.

This is why leverage is not your friend. It takes risk out of your hands and gives you an unfair edge that makes up for the potential downsides.

Now, let's talk about position sizing. A stock might have a high beta (up to 10-12), but if the market is going down, the stock can still go down another 5% in one day. That's not sustainable.

So leverage, by raising your risk pool, increases this potential downside of 5%. You'd need to be an idiot who couldn't see that trade at $20k to avoid losing it all!

Remember, leverage is a tool for traders, not just for the rich and powerful like you. It's about balancing risk with reward.

Always remember: don't be afraid to break even or make a profit, but don't play with fire!

Don't think of yourself as a fish; think of trading as a game where the rules are different from regular life.

Stay disciplined, stay sharp, and always be ready for the next big wave!

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