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Breaking the Leverage Investing Taboo: Why 1x Isn’t The Answer!
How Data-Driven Leveraging Led To My Early Retirement
“Leverage” is a taboo word. It’s the financial equivalent of a double-edged sword — sharp enough to carve out a fortune, but swing it wrong, and you’re the one bleeding.
I learned that the hard way.
At the age of 21, I was addicted to trading, placing over 100 daily trades. This gave me a false sense of expertise that led me to push up the leverage. I started using 200x leverage, and it took me just a couple of months to transform $500 into $5,000. I felt invincible.
Until the fateful day when I lost everything in a few hours… margin call!
After blowing up my account using 200x leverage, I swore I’d never again touch leverage.
However, almost 20 years later, I’m here to tell you that you should probably use leverage!
Let me say it very publicly: Leverage can be good for your portfolio!
Leverage can multiply your returns by 10 times, 20 times, or even 42 times, while not significantly increasing risks.
But exactly what kind of leverage should you use? 200x? 50x? 10x? That’s what this article is about. And… the right answer is almost never “no…
