Leverage, to put it simply, is just a tool. The issue has never been about the multiple, but about the user themselves.

People often ask me, how many times should I open a perpetual contract? Is 3x stable? Is 10x okay? Should I just go for 100x?

I always answer this way: the multiple itself isn’t good or bad; it depends on how large a position you’re operating with.

It sounds counterintuitive, but it’s really like that. Some people are afraid of 100x leverage, thinking 5x is the way to go. But in reality? Opening a position with 50% of your account at 5x risk is absolutely more dangerous than using 5% of your funds at 100x. The former can be liquidated in minutes, while the latter might actually stay safe.

When I first started trading perpetual contracts, I also fantasized that leverage could help me turn around quickly. But what happened? A couple of small fluctuations and I was forced out. The most heartbreaking part isn’t even misreading the market—if you get it wrong, you can just cut losses and walk away. The real pain is when you’re right about the direction, but your position is too heavy, and a normal pullback shakes you out. That feeling… is truly devastating.

Later, I set three ironclad rules for myself, and I’ve never been liquidated since.

**First: Use only isolated margin, never full margin.** Losses on a single trade must be limited to within 2% of total funds. I do this for every trade I take, no exceptions.

**Second: Always set a stop-loss.** Place your stop-loss as soon as you open a position. Don’t tell me “I can hold through it,” that’s just self-deception. Among those who get liquidated, nine out of ten think that way, but in the end, they still can’t escape.

**Third: Don’t be too greedy with daily targets.** With a capital of 500U, making 50U a day is a good return. A 20% monthly return puts you among the top in traditional finance.

Leverage is like a magnifying glass; it can help you see opportunities clearly, but it can also burn you directly.

Those who can survive long-term in this market are not because they use low leverage, but because they control risk tightly. Using 5x leverage recklessly will eventually lead to liquidation; but with disciplined 100x leverage, you might actually last longer.

So next time, don’t ask how many times you should open. Ask yourself: what’s the maximum loss I can afford on this trade? A trade you can afford to lose is the one truly worth betting on.