A trader lost over $1 Million + on Binance Feature trading - page 7.

KingsDen

legendary

Activity: 1260

Merit: 1079

Goodnight, o_e_l_e_o 🌹

I do not have an idea on how to trade futures, but with the little research I meant about future trading, I concluded that it is a kind of gambling. And it is only those who are mentally strong and emotionally rugged that goes into features with such amount of capital.

Quote from: BitMaxz on April 14, 2024, 08:45:17 AM

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.

He used a meme coins because I guess it is more volatile and such can give faster profits. Maybe, he didn't use stop loss because his capital was much and as such he didn't think he could be liquidated.

Quote from: BitMaxz on April 14, 2024, 08:45:17 AM

What I see here he does not have knowledge about risk management which is why he lost everything.

It might not only be risk management but over confidence of the trader.

BitMaxz

legendary

Activity: 3374

Merit: 3095

BTC price road to $80k

That is super risky why did he invest in Meme tokens like Pepe it does not have any use and the thing here is he doesn't know how to use a stop-loss.
I see many traders got liquidated recently on the chart and almost billions were liquidated in two waves yesterday.
What I see here he does not have knowledge about risk management which is why he lost everything.

And correction its not feature trading it is futures trading.

cryptoWODL

sr. member

Activity: 364

Merit: 308

We all know trading is risky but among them futures trading is the most risky. Many times despite having experience one cannot succeed in this futures trading. This is why futures trading is often compared to gambling. There is more risk in futures trading than there is in gambling. I believe the words you mentioned about futures trading because I have involved myself with futures trading many times for which I have full experience.

I was trading a coin futures that I took two x long. Then a few minutes later I got a message from Binanch and sent a dollar full of consolation to my account. Maybe those who traded futures on the Binance exchange may understand that when they liquidate, they get a dollar back as consolation. When I got liquidated in futures trading, I vowed that I would not be involved in futures trading again because this trading can make people rich overnight and make them lose money overnight.

Hazink

full member

Activity: 189

Merit: 120

Reference

Quote

“Just woke up and realised I got liquidated overnight. I was 3x long PEPE. I lost everything I had. I don’t even have $1000 in my bank account but had $1M in Binance. I have been in crypto since 2017. Today I lost everything,” he posted.

This is one disadvantage of future trading. You can make a fortune over night trading on future, but you can also lose it all if you don't apply good risk management. It's obvious that this man did not set a stop-loss point; his greed overshadowed him with too much confidence that the bitcoin price can't dump since the halving is just around the corner.

It's hard to experience total liquidation like this on spot trading, but if I thought Binance by default doesn't allow 100% liquidation on future trading, at least it will automatically stop in the range of 85–90% of the trader's total assets they always tries to leave you with something.

Topic: A trader lost over $1 Million + on Binance Feature trading - page 7. (Read 1032 times)