--- SHOULD I USE LEVERAGE OR NOT? (part 3).
I want to emphasize that because my capacity is limited, I do not use traps. But I don't underestimate that tool.
Reasons why I don't use leverage:
1. Stress. It will be very difficult for you to relax your mind to enjoy life because leverage will make you worry about burning out your account. You will have to check regularly. You will automatically wake up at 3-4 am to turn on your phone to see the prices. I have to say that I'm haunted by that stage of using traps, it's terribly damaging to my mental health.
2. Pressure. If you are not decisive in cutting losses (specific limit), using leverage will only destroy your assets faster and more brutally. Player x1 can hold losses, waiting for a rebound for unexpected fluctuations, but player x5 x10 is not allowed. The more pressure you have, the more orders you enter and exit, the less wise your decisions will be. Plans are broken and regrets are left behind.
3. Traps are for some cases where we are confident that our chances of winning are high. But in this market, who knows?
4. Once your brain gets used to the x5 x25 leverage, it is very difficult for you to go back and accept modest numbers at x1. This habit can lead you to play: losing at x5, and wanting to win back at x10. Or you won at x10, excitement will push you to x20. If you don't have discipline, you will soon lose everything.
In short, leverage is not for beginners. It will destroy the newbie mercilessly. Some people I know have lost 10-20k USD and can't get it back because of leverage. Now I just have to swallow the bitterness.
If you are a newbie, just be enthusiastic, don't get too excited.