The Midas Method: Position Leverage – Your First Line of Defense [Lesson #1]

Alright, let’s kick this off with a confession:

Leverage didn’t ruin me.

My ignorance of it almost did.

See, I used to think leverage was a tool to amplify gains. But it’s actually a test:
A daily test of your risk control discipline.

If you get leverage wrong in XAUUSD, it won’t just sting — it’ll gut your account fast, especially around macro events or during those quiet sessions that suddenly explode.

So let’s unpack how to use leverage intelligently — like a pro who survives long enough to actually compound returns.

⚙️ What is Leverage? (And Why 99% of Traders Get It Wrong)

In simple terms, it’s using borrowed capital to increase your buying power.

📈 More leverage = bigger potential gains.

But it also means small price moves in Gold can create catastrophic swings in your account balance.

My first serious drawdown—-22% in three days—came not from a bad read but from over-sizing in front of a surprise Fed cut.

I learned: If you control leverage, volatility turns from predator to prey.

There are two types of leverage. Only one of them matters