2025-12-25 00:23:04

Many traders choose high leverage to "save face" and avoid being accused of having a small capital base. But is this approach really worth it?

Think carefully, top players like CZ, with a net worth of billions, only open positions with around 2 million, which is essentially just a trial position relative to their overall assets. In contrast, many retail investors may only have tens of thousands or hundreds of thousands, yet they insist on using 30x or 100x leverage. What is the logic behind this?

To put it simply, making money doesn't benefit the spectators, and if you get liquidated, no one will compensate you a penny. Rather than calling this a trading strategy, it's more like psychological compensation—using high leverage to make up for internal imbalance.

Of course, this extreme risk strategy often ends with liquidation. Some see it as a regret, but from a market optimization perspective, isn't this a form of "self-correction"? Investors with severely mismatched capital management are eventually eliminated by the market, which in turn protects more rational participants.

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unrekt.eth

· 3h ago

Leverage is just a psychological comfort for the poor; when it actually makes money, it's not the braggers who benefit. --- 100x leverage is nothing but a gambler's mentality. Don't self-deceive. --- Reading this article makes me think of those friends around me who shout "all in" every day. Now, how are you doing, you tell me. --- Liquidation is the most honest educational cost; there's nothing to regret. --- CZ casually opens a few million to test the waters, while retail investors insist on going all-in with their entire savings. That gap can't be bridged by leverage. --- Honestly, it's greed causing this chaos; you have to go to extremes to feel good. --- The market eliminates these high-leverage gamblers; don't blame others. --- Leverage is the poor's vanity; if they can't make money, they still have to pretend to be rich. --- Who to blame for the imbalance in capital allocation leading to liquidation? Blame yourself. --- I think of a buddy I know, who used 30x leverage and was back to square one overnight. That's what you call "self-correction."

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BearMarketLightning

· 12-25 00:53

Honestly, that psychological compensation part really hit me hard... 100x leverage is basically shooting yourself in the wallet, isn't it? Liquidation isn't the real tragedy; the real tragedy is treating leverage as a tool for turning things around. The most expensive thing about losing money is actually this breath, right? It's already 2024, and you're still playing with high leverage to show off; might as well just go to a casino. Retail investors should really read this article; don't shoot yourself in the foot by lifting a stone. Can CZ's 2 million test position compare to your 100x leverage? There's a huge difference, brother. Liquidation is the market teaching you how to behave; some lessons only come after paying tuition.

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AlwaysMissingTops

· 12-25 00:53

That's incredible. It's exactly the group of buddies around me who keep shouting about 100x dreams, but within a few months, their accounts are wiped out. Honestly, if you can't play, just don't pretend. What's the point? Getting liquidated is just deserved. Who's to blame? Leverage is just an amplifier. Greedy people end up getting completely eaten. Psychological compensation hits right in the heart. There's nothing wrong with that. Instead of high leverage, it's better to learn how to survive longer. Retail investors' lives, indeed, no one will feel sorry for them.

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CexIsBad

· 12-25 00:24

100x leverage is purely a gambler's mentality, stop fooling yourself --- Honestly, if someone dares to go all-in, don't blame the market for being ruthless --- Haha CZ casually plays with 2 million, while we bet our entire net worth with 100x leverage, the gap... --- Instead of pretending to be impressive, it's better to learn to cut losses, really --- Only at the moment of liquidation do you realize what self-correction means—it's a bloody lesson --- Money management is the first lesson; high leverage only makes you lose faster --- Psychological compensation is spot on, it's just about wanting to prove oneself --- Winning and acting like a big shot, losing and blaming the market—these routines are tired --- The market has its own rules; those who play with fire will get burned sooner or later --- Retail traders going all-in are just market sacrifices, no problem

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