Core Risk: Leverage increases both gains and losses.
10x leverage: A 10% price move = 100% account loss
50x leverage: A 2% price move = 100% account loss
100x leverage: A 1% price move = 100% account loss
Recommendation:
Start with 2-5x leverage until you have proven track record
Never risk more than 2% of account per trade
Use stop losses on every position
Crypto & Equities are Volatile:
20% daily swings can happen on major assets
Your $10,000 position can swing $2,000 in hours
Conclusion: Do not trade with money you cannot afford to lose.
Last updated 6 days ago