When mentioning 'High Leverage', many people's usual reflex is to shake their heads: 'Too risky, your account will definitely burn out!' But if viewed objectively, leverage itself is not wrong. What creates disaster is often how people use leverage, not the leverage number itself.

Leverage Is Just an Amplifying Tool

In a favorable market rhythm, if the spot price increases by 5%, using leverage wisely can help profits double. This is not luck, but the mathematical effect of leverage. The issue lies in the fact that to exploit this effect, traders must have discipline and the ability to control risk.

Leverage is like a loudspeaker. When you have a clear strategy, it amplifies profits. When you lack rules, it amplifies losses rapidly and uncontrollably.

Why Do Many People 'Burn' Their Accounts?

The reality shows that many accounts are wiped out not because of using too high leverage, but because:

  • Impatience to make quick profits, entering trades without a plan.

  • Not setting stop losses, hoping the market will 'turn around'.

  • Stubbornly holding losses, allowing emotions to override reason.

  • Randomly piling on trades, increasing risk exponentially.

They often talk about 'stability', yet do not adhere to the most basic principles. The mentality of wanting to double an account leads to even more erratic trading behavior than market volatility. It is no longer trading, but gambling.

High Leverage Can Become An Advantage

It is not impossible to use high leverage to break through, but the prerequisite is iron discipline. Three core elements are needed:

  1. Accurate assessment: Only enter trades when there is a clear basis, do not trade based on emotions or rumors.

  2. Stable execution: Position size must be calculated, no 'all-in' based on excitement.

  3. Decisive loss cutting: When wrong, you must accept the mistake quickly. Cutting losses is not a failure, but a means of preserving capital.

If you can do these three things, leverage will become the engine to accelerate assets. Conversely, just missing one link will immediately turn it into a trap that blows up your account.

The Problem Is Not How Many Times Leverage

Some trade stably with 10x, while others blow up their accounts every day with just 3x. The difference lies not in the numbers, but in the user and how it is used.

Leverage is neither good nor bad. It is neutral. It only reflects the level, discipline, and psychology of the driver.

Conclusion

Do not be afraid when hearing about leverage, but do not recklessly dive in blindly either. Understand the market, understand yourself, and maintain a stable mindset is the foundation for leverage to work for you, rather than against you. In trading, long-term survival is always more important than making big wins in a few lucky times.