Should leverage be used? How much leverage should be used?
Many friends see that they can use 100x or 125x leverage, and feel that they will cross the class in an instant and achieve financial freedom in a short time.
However, how many friends who use high leverage have really achieved N times of funds? There are still more liquidations.
Should leverage be used? Of course, it should be used, otherwise there is no need to put it there. Leverage is an option, not a must.
The use of leverage should match the ability and the size of the funds. If you are not capable enough, don't fantasize, just use a small leverage honestly, or even don't use it. If you are capable, of course you should use leverage to your ability, otherwise it will be a waste.
If the funds are small, you should use a high leverage appropriately, because you want to take a gamble and turn a bicycle into a motorcycle. If the funds are large, of course you want to be stable. With 1 million funds, 30% annual income is a lot, and you can use a very small leverage.
To sum up: the most important thing about using leverage is to match your ability. If you use leverage beyond your ability, the catastrophe is not far away.
