Use Leverage with Caution
Leverage is a powerful tool in the hands of traders, capable of amplifying gains. However, this double-edged sword can also magnify losses if not handled with care.
It's imperative to avoid excessive leverage ratios. These high leverage levels, like 10X or 100X, might seem enticing but can quickly lead to catastrophic losses. Instead, consider sticking to lower leverage levels, such as 2X or 3X.
By doing so, you reduce the risk of overexposure to market volatility.
