Don't blame high leverage for causing harm; the one harming you is yourself.
Yesterday I spoke to Xiao Li on the phone, his voice was hoarse—500,000 principal, using 3x leverage on ETH, and in three days it dropped to 20,000.
Before hanging up, he cursed: "High leverage is a trap, never touch it!" I didn't argue, but I knew in my heart that the one harming him wasn't the leverage, but his own "gambler's mentality."
I used to be afraid of leverage, always thinking that "the higher the multiple, the more dangerous it is," holding onto the spot market and watching others use 10x leverage to capitalize on doubling trends, I could only slap my thigh in frustration.
It wasn't until last year when I followed Lao Zhou in trading BTC that my understanding was completely overturned: when the market starts, if the spot rises by 5%, he makes a direct profit of 50% with 10x leverage, while I only get a taste of the soup.
I asked Lao Zhou, "Aren't you afraid of liquidation?" He pulled out his trading records for me to see: every time he opens a position, he draws trend lines in advance, only entering when the daily EMA30 is stable, and he sets a stop-loss as soon as he opens a position, cutting losses at 5% and locking in half the profit at 20%.
"Leverage is a magnifying glass," he pointed at the screen and said, "If you have a method, it magnifies profits; if you mess around, it magnifies losses."
Xiao Li's problem is the same as mine back then: opening positions without looking at trends, daring to go all-in with 3x leverage, hoping for a "rebound" after losses, never setting stop-losses, getting emotional with every market fluctuation, it's no different from gambling.
In contrast, Lao Zhou, using 10x leverage, is actually steadier than trading the spot market because he has ingrained in himself the principles of "accurate judgment, steady execution, and ruthless stop-losses."
Accurate judgment means not touching unclear markets and only trading confirmed trends on the daily chart; steady execution means waiting for a pullback to support before entering, never chasing the price up;
Ruthless stop-losses mean that as soon as he opens a position, he nails down the stop-loss line, and even if he gets "spiked," he doesn't regret it.
If these three points are achieved, high leverage becomes a wealth accelerator; if not, even 1x leverage can wipe you out.
Now I also use 8x leverage, but my account is becoming increasingly stable. In this market, there are always people cursing leverage for causing harm, yet they refuse to admit their own problems.
—Impatience, lack of method, inability to maintain mindset. In fact, leverage has never been the enemy, it's a tool, just like a kitchen knife, it can cut vegetables but can also harm people; it all depends on whether the person holding the knife understands the method.
The market is about to move, don't just hide when you hear about high leverage, and don't blindly go all-in.
First, sharpen your trading logic, maintain a good mindset, so that when the next market comes, you can let leverage make money for you, rather than being harvested by it. #特朗普缓和局势 $ETH
