Leverage trading is most likely to ruin people not because of the market itself, but because of their mindset. My actual experience last month gave me a deeper understanding of this statement.

My initial capital was 5,000 USD, and my final account reached 100,000 USD. There’s no black technology involved, nor any luck; it’s purely about thoroughly understanding the word "stability." Many traders would ask, how did you do it? Essentially, it’s just a few principles repeated consistently.

First principle: Never be greedy with your initial position. I took 20% of 5,000 USD, which is 1,000 USD, as my first trade, using 3x leverage to test the waters. Why not go all-in? Because the market has too many variables, and you never know how the next candle will move. Many start with full positions, and when the market slightly pulls back, they get liquidated immediately, with no chance to react.

After earning the first profit of 1,500 USD, I only withdrew 500 USD to add to my position, while reducing leverage to 2x. What’s the benefit of this? The risk gradually decreases, but the returns grow like a snowball. Each addition is based on the profits from the previous trade, not by blindly throwing in the principal.

Last month, BTC traded sideways for two weeks. Many around me traded frequently during this period and ended up losing everything. My approach was to wait like an old turtle, patiently waiting for that key signal to appear. Many think trading requires frequent actions to make money, but actually, the opposite is true. The real big profits are hidden in a few precise entry points; most of the time, it’s just unnecessary noise and tuition fees.

I only entered when BTC broke through the 111,000 position. Why this point? Because it resonated with both technical analysis and market psychology. The sideways movement in the previous two weeks was actually building momentum for this breakout.

Regarding the liquidation line setting, I think this is the most critical point. When BTC was around 108,000, I set the liquidation line below 96,000, leaving a 10% safety margin. This distance may seem small, but it’s hugely effective in practice. Markets often have spike behaviors, and a single spike can wipe out an unprotected account. I’ve seen too many people using 5x leverage get stuck at support levels, and a spike directly zeroes their account. Going from having an account to nothing happens in an instant. The liquidation line is your lifeline—never joke with it.

When my account reached 100,000 USD, I didn’t chase higher numbers but withdrew 80,000 USD to my bank account. How important was this decision? Extremely important. Because only the money transferred to your bank is truly earned. The remaining account balance is just on paper, and market fluctuations can wipe it out at any time.

The remaining 20,000 USD continued to be traded within the account, which maintains operational flexibility and minimizes risk. Psychologically, it’s more reassuring—after all, the main capital is safe, and the rest can be used as idle funds for trial and error.

To summarize the core of this method: don’t invest more than 20% of your total funds in the first position; consider adding to your position after profits, but keep the increments conservative; only participate in high-probability key trades, and wait otherwise; set the liquidation line with at least 10% buffer; and when profits reach a certain level, withdraw promptly to lock in gains.

This isn’t some advanced theory; it’s the simplest routine for ordinary people to double their capital from zero in leverage trading. The core competitive advantage is execution. With proper execution, the next account growing from 5,000 to 100,000 could very well be yours.