Part 3/7:
Encouraged by the success of others, our protagonist signs up at an exchange to begin trading. With an initial deposit of just $500, they dive into the world of margin trading—a risky endeavor that allows traders to borrow funds to amplify their buying power. The fundamental concept of leverage is outlined: utilize 10x leverage to magnify profits (or losses) based on market movements.
With the stock market buzzing, enthusiasm swells at the prospect of investing. Despite warnings from friends against investing in high-performing stocks, the trader sets their sights on Nvidia, fueled by a gut feeling that massive gains await. Choosing to deploy an outrageous 100x leverage for an accelerated profit, they place their bet.