You are shown the button ‘x10’, ‘x50’, ‘x100’. A voice in your head whispers: ‘Here it is, the shortcut!’. Now I will explain why pressing it as a newbie is like playing roulette with 5 bullets.
A margin is not a way to earn more. It’s a way to LOSE EVERYTHING much faster.
Imagine you are driving for the first time. You are given not an ordinary car, but a souped-up Formula 1 race car with a ‘Turbo Boost’ button. Will you press it on a straight? And in a turn? The market with margin is like the same ‘Formula 1’ on a winding mountain road. You still don’t know how to brake.
3 SPECIFIC EXAMPLES THAT WILL KILL ALL ILLUSIONS:
1. The math of destruction.
You have a deposit: $100**. You open a trade with leverage x10. Your position is already $1000. A small drawdown against you of only 10% of the position amount = $100 loss**. This is 100% OF YOUR DEPOSIT. Liquidation. You are out of the game in one candle. Without leverage, the same drawdown would have cost you $10.
2. Psychological hell.
Without leverage, you can endure a drawdown of 20-30% if you believe in the idea. With 10x leverage, a 3% drawdown on the asset causes panic because your deposit is already swinging at -30%. You either give up at a loss (burning money), or move the stop-loss, guaranteeing liquidation on the next move. You are not trading—you are extinguishing a fire with gasoline.
3. The liquidation fee is robbery.
Upon liquidation (which happens quickly with leverage), the exchange does not just take your deposit. It closes your position AT THE WORST PRICE in the moment (in panic). You lose not only your $100, but all $100 + possible spread and commission. This is double humiliation.
‘BUT I CAN WIN MULTIPLES MORE!’
Yes. And this thought is your main enemy. It makes the brain ignore risks. Leverage amplifies not only profits but also your mistakes, greed, and fear. Beginners already have these 'amplifiers' overflowing.
THE MAIN RULE (remember it like 'Our Father'):
First, learn to earn steadily WITHOUT leverage. Leverage is a tool for increasing capital, not for creating it.
YOUR ROADMAP IF YOU WANT TO LIVE:
1. 6 months—spot trading (without leverage). Your goal is not the % return, but discipline: risk 1-2%, keeping a diary, controlling emotions.
2. The next 6 months—try leverage x2-x3 on a DEMO ACCOUNT, as if it were real money. The goal is to feel how psychology changes.
3. Only then—micro-leverage on a real account with tiny amounts.
QUESTION FOR THE ONES WHO STILL TRIED ANYWAY:
👉 Share your most painful story with leverage. On which asset and with what multiplier were you 'liquidated' and how much did it cost? Let it be a reminder for those currently reading and thinking 'maybe I should try?'.
If after this post you still dive into margin trading with 50x leverage, having a deposit of $200, then you are not a trader. You are a donor for those on the other side of your trade. The market will thank you.
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