Hahaha bad advice! Those with little money should definitely be adviced to SAVE money, not GAMBLE their little money in “microcaps”!
The main reason why people leverage is because they do not have large amount of money to trade, that is why they instead think of going 2x, 3x or more. It all depends on experience, the leverage used and patience. Some people are good enough to turn small amount of money into something good. If anyone can not start to trade like this with lillte leverage like 2x, then the person can not be a good trader or will lose a lot before becoming a good trader that will make profit.
If that is the case then they need to save more money until they have the minimum necessary to trade the markets, I understand your explanation and on the surface it makes sense, but when you begin to think about it more deeply you can see that it does not, those that have the highest amount of money try to reduce their risks as much as possible to protect their capital, so it is interesting that the ones that many times less capital choose the opposite strategy and they are reckless with their capital when it is so low, if anything they should be even more conservative in their strategies, but since this could limit their profits this is something they do not want to do.