Leverage: A double-edged sword! Do you know when to use it? ⚔️
Leverage can multiply your profits... and your losses just as quickly! It is a powerful tool for professional traders, but a deadly trap for beginners or those who misuse it.
Before you use leverage, ask yourself these questions:
Do I fully understand the risks? Do you know what the Liquidation Price is? And are you prepared to lose your entire capital?
Do I have a clear strategy? Have I precisely defined my entry and exit points and stop-loss? Trading with leverage without a plan is gambling.
What leverage ratio am I using? Starting with low leverages (like 3x or 5x) is much better than jumping to 50x or 100x.
Am I only using capital that I can afford to lose? Never risk money that you need for your daily life.
Golden tip: Learn spot trading successfully first before thinking about futures and leverage. Building a strong foundation is more important than chasing quick profits.
What is your experience with leverage? Positive or negative? Share your story so we can learn from it! 👇
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