LEVERAGE: A DOUBLE-EDGED SWORD IN INVESTING
🎯 In investing, nothing is 100% certain, and that is precisely why leverage is a highly risky tool. While it can provide significant profit potential, leverage can also cause you to lose everything in just one failed attempt.
💡 Leverage amplifies everything – both profits and risks. Even a great streak of trades cannot save you from a major mistake if you bet too much. Remember, a great series of numbers multiplied by zero is always zero. Leverage not only increases the chance of earning profits but also allows risks to spiral out of control. Therefore, protecting capital must always be a top priority when using leverage.
🔑 Core message: Don’t view leverage as a shortcut to wealth. Instead of chasing short-term profits, focus on risk management, implementing a consistent strategy, and aiming for sustainability. In investing, long-term survival is the real goal, as it creates opportunities for you to capitalize on advantages and succeed in the long run.
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⚖️ Leverage is dangerous,
🔢 Multiply by zero, still zero,
💡 Wealthy, don’t take risks.
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