I often see newbies asking this question: "Is there any difference between starting with 1000 at 10x leverage and starting with 2000 at 5x leverage?" Every time I see such a question, I can't help but sigh. On the surface, both plans have actual holdings of 10000, and a one-point fluctuation in the market results in a profit or loss of 100, which is exactly the same. However, having been in this market for 6 years, I have seen too many traders regret their decisions after getting liquidated. I must clarify to everyone: the real difference in leverage is never about "how much you can earn", but about "how long you can survive".

High leverage sounds tempting, but 10x leverage is simply not suitable for ordinary people. How close is the liquidation line? It's like dancing at the edge of a cliff—any slight market pullback or sudden small fluctuation, and you could fall off without realizing it. I've seen the most regrettable situation where a trader's directional judgment was completely correct, but they chose 10x leverage, resulting in being forcibly liquidated due to a small reverse fluctuation, and then helplessly watching the market rise according to their judgment, regretting it deeply without being able to change anything.

In contrast, 5x leverage is different. Its advantage is not in making more money, but in leaving enough room for error. It's like laying down a cushion beneath your feet—when the market temporarily moves against you, you still have ample time to think calmly: should you stick to your plan and cut losses, or continue to hold and wait for the market to reverse? This is the correct trading rhythm; it’s not about betting everything on a single outcome, but about allowing yourself room to adjust and wait.