Second part to explain the image 🤣💥💥 💯💯💯💯
One sees that image of the guy leveraged at 100x, with crazy ROI, and the first reaction is:
"No way, this guy is a chosen one from the trading Olympus!"
And of course, immediately the honest and human question comes up:
Is that really possible… or do I always get the version "three seconds later, liquidated and with my underwear halfway down my knees"?
The short and blunt answer:
yes, it is possible, but it is not the norm, nor is it replicable, nor is it advisable for most.
What you see there is like the neighbor who won the lottery betting everything on the same number. Did it happen? Yes. Should you do it? Not even as a risk.
Now, the detail that almost nobody looks at:
the guy is on 100x cross margin.
That basically means putting all the livestock in a single pasture, opening the door, and saying "God will provide". While the price is in your favor, you are a genius. The day it reverses, Binance doesn’t ask you, it milks the whole corral.
That's why many of us experience the same:
we enter at 50x, 75x, 100x believing we are professional traders… and before we know it, we are crying our eyes out, wondering what went wrong.
Most likely that guy wasn’t playing with the last coin in his pocket. Being on cross margin, it’s highly probable he had additional money in the account, acting as a cushion. That’s what allowed him to withstand the 100x leverage without Binance kicking him out of the pasture at the first price spike. It’s not the same to jump into the river with a life jacket as it is to jump in your underwear.
Isolated margin is the little corral of learning. You lose little, learn a lot, and stay alive.
Cross margin, when used well, is a surgeon's tool. Misused, it’s a chainsaw without a helmet.
What’s the big lesson from all this?
It’s not that the guy in the image is an alien; he may possibly have risk management, timing, experience, and discipline, which weigh more than leverage. I don’t know, that could be 😅😅
$XAU
