The incident centers around James Wynn, a trader who claimed to have made impressive gains using extreme leverage on a volatile asset. According to Tate, this success story was more illusion than inspiration—a “trap” designed to sell courses, gain followers, or simply showcase a false sense of expertise. Tate labeled the practice as dangerous, pointing to the unsustainable nature of leveraged trades in unpredictable markets.
“If you win on 100x leverage, you’re not a genius — you’re lucky,” Tate warned in a now-viral video clip. “And luck always runs out.”
The key takeaway? Leverage is not inherently evil, but when wielded irresponsibly, it becomes a ticking time bomb. Many aspiring traders are lured by the dream of rapid wealth, overlooking the fact that leverage magnifies both gains and losses. Tate’s perspective serves as a cautionary tale rooted in firsthand experience.
His critique also highlights a broader issue within trading communities—many social media personalities glamorize gains while downplaying the risks. According to a report by the Financial Times, an increasing number of retail traders suffer significant losses due to overleveraged positions, often driven by misleading content and FOMO-fueled decisions.
For those entering the markets, Tate’s message is clear: if someone showcases gains from extreme leverage, ask yourself what they’re selling, what they’re not showing, and how sustainable that strategy really is. Real trading success, as he argues, comes from discipline, risk management, and long-term vision not flash-in-the-pan wins from 100x gambles.
While controversial and polarizing, Tate’s warnings tap into a hard truth many prefer to ignore. The lesson isn’t about Wynn himself it’s about the seductive illusion of easy money and the very real consequences when leverage is misused.
For aspiring traders and veterans alike, the Wynn trap is a timely reminder: in markets as unforgiving as crypto or forex, knowledge and caution are your most valuable currencies.