Why is it that with the same 3,000U, some people can turn it into 30kU in a month, while others lose it down to 300U in three days?


Many people’s first reaction is that it’s a market issue, but after doing this for a while, you’ll realize the real difference isn’t the market—it’s whether they use leverage as a tool or as a gambling table.
Many people hear about a liquidation and immediately assume it’s because the leverage was too high. But that understanding is incomplete. What really causes problems is never 20x or 50x on their own—it’s high leverage + heavy position + poor risk control, all three happening together.
Here’s a simple example: with the same 3,000U position, one person uses 300U with 10x leverage, while another uses 150U with 20x leverage. The leverage appears different, but the actual risk exposure is the same.
If the market goes up 1%, both make about the same profit. But if it drops 1%, the 300U position loses 30U, which is only 10% of the margin. The 150U position also loses 30U, but that already eats up 20% of the margin. After a couple more fluctuations, most people’s mentality starts to fall apart.
So many people don’t lose because of the market—they lose because their position structure is too fragile.
Going deeper: if your account has 3,000U and you use 300U with 10x leverage, you can take at most 10 opportunities. But if you use 150U with 20x leverage, you can split it into 20 opportunities.
With the same money, the latter is actually more flexible because you are testing the market in batches instead of betting everything on one trade.
The real purpose of high leverage is not to go all-in on a single trade, but to allow you to trade with light positions, multiple entries, and in batches.
Add to a position when you see it’s right, exit when it’s wrong—that’s how it should be used.
Low leverage suits those who take heavy positions and can withstand fluctuations; high leverage suits those who trade light and fast in and out. But in reality, most people use it exactly the opposite way.
You see someone making a fortune on a 50x trade, but you don’t see all the positions they blew up before.
At the end of the day, trading is not about who has bigger balls, but who is more stable.
Position stability, stop-loss stability, execution stability—once these three things go wrong, it’s basically the beginning of a downturn.
In the end, the difference is simple: one person uses leverage to trade, while the other uses leverage to gamble on the result. $BTC
BTC1.31%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned