High leverage is one of the biggest reasons traders lose their entire accounts. It feels attractive because it promises fast profits with small capital, but in reality, it magnifies mistakes much faster than skills. A small price move against your position can wipe out weeks or months of hard work in seconds.
Most traders don’t lose because their analysis is wrong — they lose because high leverage gives the market zero room to breathe. Normal pullbacks turn into liquidations. Emotions take control, stop losses are ignored, and revenge trading begins.
That said, leverage itself is not the enemy. Blind use of leverage is.
High leverage becomes useful only when: • You already have a proven strategy
• Your risk per trade is strictly controlled
• Stop loss is non-negotiable
• You use leverage to reduce capital exposure, not increase greed
Professional traders don’t use high leverage to gamble. They use it as a tool for precision, not excitement.
If you want longevity in trading, think survival first, profits second. Low leverage builds consistency. High leverage tests discipline — and most fail that test.
Trade smart. Protect capital. Let profits come naturally.
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