Leverage is one of the most misunderstood concepts in trading.
Used correctly, it is a tool.
Used incorrectly, it is a trap.
What Is Leverage?
Leverage allows you to control a large trade with a small amount of money.
Example:
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1:100 leverage means ₵1 controls ₵100
This amplifies both gains and losses.
Why Beginners Blow Accounts With Leverage
Beginners often:
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Use maximum leverage
-
Ignore stop losses
Leverage does not cause losses poor risk management does.
How Professionals Use Leverage
Professionals:
Survival comes before profits.
Final Thoughts
Leverage should support discipline, not replace it.
#SOGCAPITAL
Tags
education
