Be careful with margin trading. (story) - page 2.

its-a-me-mario

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Quote from: leowonderful on November 14, 2019, 05:04:53 PM

It's especially important that you set market stops especially if you're trading using leverage or margin as well. I've had many instances on sites like Bitmex and elsewhere when prices were moving strongly in one direction and blew past my limit stops, and even though there's potential slippage when you're using market stops and you're also paying more than with a limit stop, it's still worth it IMO.

It's also generally not a good idea to follow signals word-for-word 100% of the time (because everyone's wrong occasionally), and you should always be considering the risk to reward of whatever signals or trades you're taking. Many people typically risk 3% of their total trading balance per trade, and depending on your stops you can adjust your positions using leverage optimally. If your stop is close to your entry, you're able to use a larger position while risking the same amount of money as a smaller position that's got a stop farther away.

Totally agree, market stop is a great tool. You have to be careful if you're placing a big order though as you can chew through a lot of the order book and end up getting a worse average rate than expected.

leowonderful

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It's especially important that you set market stops especially if you're trading using leverage or margin as well. I've had many instances on sites like Bitmex and elsewhere when prices were moving strongly in one direction and blew past my limit stops, and even though there's potential slippage when you're using market stops and you're also paying more than with a limit stop, it's still worth it IMO.

It's also generally not a good idea to follow signals word-for-word 100% of the time (because everyone's wrong occasionally), and you should always be considering the risk to reward of whatever signals or trades you're taking. Many people typically risk 3% of their total trading balance per trade, and depending on your stops you can adjust your positions using leverage optimally. If your stop is close to your entry, you're able to use a larger position while risking the same amount of money as a smaller position that's got a stop farther away.

Hypnosis00

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Your friend needs strong support from someone else and knows his position. He can be always in panicking if nobody could accompany him regularly cause I believe that he still learning and not fully understand what he has done right now.

Quote from: BitHodler on November 14, 2019, 12:31:20 PM

Quote from: Yatsan on November 14, 2019, 02:57:33 AM

And the most important part is don't go all in, in margin trading.

That highly depends on the situation. In some cases people start with small amounts and book some decent profits, then think they can do the same but with larger amounts because they get greedy.

Another thing is that when people lose on a few trades, they go big after that in an attempt to gain back what they lost at once, which usually means that they lose every single penny that they had before they started losing.

The same happens with people who gamble.... the biggest losses are suffered by trying to gain back what people lost.

They are deeply frustrated if they act like that and they are putting themselves to an end faster. If we experience continuous losses it sounds like our strategy never works well or the way we manage ourselves. Putting to an end of our trading career is a perfect solution rather than to continue doing but still ended up for nothing.

BitHodler

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Quote from: Yatsan on November 14, 2019, 02:57:33 AM

And the most important part is don't go all in, in margin trading.

That highly depends on the situation. In some cases people start with small amounts and book some decent profits, then think they can do the same but with larger amounts because they get greedy.

Another thing is that when people lose on a few trades, they go big after that in an attempt to gain back what they lost at once, which usually means that they lose every single penny that they had before they started losing.

The same happens with people who gamble.... the biggest losses are suffered by trying to gain back what people lost.

Genemind

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You should be the one to take control of your trading funds. That's the reason why we have to learn trading ourselves to get rid of uncertain losses. We shouldn't rely on trading signals or margin trading but we have to observe and go with the market flow. If we'll know how to deal with every market situation, we will not be needing trading signals anymore. It could only confuse and deceive us.

TrevorS

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Quote from: Yatsan on November 14, 2019, 02:57:33 AM

Quote from: AakZaki on November 12, 2019, 10:31:10 AM

I realize margin trading is very high risk, only traders who can't be separated from their computers can do it. because in my opinion opening a margin trading should not be left alone let alone careless it will be worse. only do margin trading if the mind is calm and not in high emotion, so trading will be better. even if one predicts it will determine the stop loss faster.

Margin trading is like gambling when you don't know what you are doing, Just make a trade when you are sure about something, or you read the news that will really affect the price of the coin that you are going to trade. Regarding the emotion, you need to know when to stop and when to just go with your profit, because just one big dump will liquidate your funds. And the most important part is don't go all in, in margin trading.

These are pretty obvious things that have been repeatedly expressed in this topic. Yes, margin trading is a risky business, but the crypto market itself is not the safest place. Risks are everywhere, they are adjacent to the opportunities that the market provides. You choose to use the opportunity and take the risk, or stay in the "safe zone". Therefore, it is not necessary to say that margin trading is evil, it is the same risk as trading, as well as investment in crypto, like everything else.

Yatsan

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Quote from: AakZaki on November 12, 2019, 10:31:10 AM

I realize margin trading is very high risk, only traders who can't be separated from their computers can do it. because in my opinion opening a margin trading should not be left alone let alone careless it will be worse. only do margin trading if the mind is calm and not in high emotion, so trading will be better. even if one predicts it will determine the stop loss faster.

Margin trading is like gambling when you don't know what you are doing, Just make a trade when you are sure about something, or you read the news that will really affect the price of the coin that you are going to trade. Regarding the emotion, you need to know when to stop and when to just go with your profit, because just one big dump will liquidate your funds. And the most important part is don't go all in, in margin trading.

TrevorS

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Quote from: Baofeng on November 08, 2019, 07:18:56 PM

1. Yes, I'm sorry but we have been educating people around here and telling them many times not to go or joined any paid or free signals.
2. Same thing, stop/loss, entry/exit plan should be in place as well.
3. Exactly, if you don't know how to handle the risk then it's not for you.
4. Of course, the thing is that your friend involve himself with huge amount of funds in the get go. And I'm not sure if he can afford to lose it, just like that.

I'm sorry for your friends lost, but this is another story of expensive lessons to learn in crypto sphere.

I absolutely agree with you. This story taught my friend a lot, haha. Now he has an open short position with x5 leverage, by the way, mee too.
The order was opened at the level of 9200. What will come of it I will write in the near future.
Of course, I accept the risks associated with this deal.

oktana

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Eloncoin.org - Mars, here we come!

Emotional patterns emerged yesterday when the price of BTC in binance went wild at $ 8888- $ 8657, this liquidated many users with large leverage in just one hour. this teaches the importance of stop limits and the need to increase capital to increase liquidation distance.
only a small sample because the BTC movement is still in the support phase, margins do have a high risk.

AakZaki

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I realize margin trading is very high risk, only traders who can't be separated from their computers can do it. because in my opinion opening a margin trading should not be left alone let alone careless it will be worse. only do margin trading if the mind is calm and not in high emotion, so trading will be better. even if one predicts it will determine the stop loss faster.

cryptoangel

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Quote from: MI6 on October 30, 2019, 12:09:10 AM

Margin trading is really hard, even for expert usually they are on wrong step and then lose too much in margin trading. Maybe your friend need to take a rest first, trading in margin is have bigger risk because it is not like trading as usual when we can hold as long as we want.

I think those are looking for margin trading, they already analyse everything so more risky compare to other trading. But we choose right project and right escrow of the crypto they will guide the complete process and risk factor. Nowadays stock market investors only participate the margin trading and they have good knowledge, But personally I am recommend for small scale investors.

Omega Weapon

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Quote from: daarul50 on November 05, 2019, 10:04:49 PM

Quote from: mindrust on October 30, 2019, 01:07:52 PM

I don't understand what's so hard about "buying and holding". Margin trading is a huge gamble. It always was and now you are doing it on a unregulated, volatile asset like bitcoin. I am sorry but whoever playing with this crap deserves to lose money. You knew the risks before getting into this.

+1

trading itself is a high risk business especially for those who have no clue but staright to trade with zero knowledge.

common mistake that we have seen frequently, even more so the margin trading it is deadly , any pro trader/mentor will encourage to avoid the margin trading , i just can not understand the way his mentor teach them to trade.
margin trading is totally a bad idea no matter for those who have a big bankroll or those who have limited bankroll.

have a debt is something you should avoid all the time to achieve the real financial freedom, is it your goal? oh and margin trading is definitely a bd debt.

This happens because traders do not really understand the risks they are taking, the best books I have read about trading have this in common, they try to do the best job they can to explain why trading is difficult and in some cases a dangerous activity and they teach how to take low risk trades, but even if a new trader was lucky enough to select the right books from which he could learn those concepts it could still be for nothing as it has been reported many times that new traders just skip those chapters and never read them.

Greed Dev

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it can only take all the money of reckless traders or see margin trading as a gambling game.
I see a lot of people hitting a lot of orders in a day, they have an unstable mentality and surely their orders will be lack of insight.
That's why many people lose on margin trading. We should really have the most comfortable mind before trading.

Kemarit

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Yeah, been in this kind of situation way back when I was a crypto trader newbie. But I will tell you that it's a lessons well taken by me. But the thing is that it looks like your friend is a total newbie, correct? So I don't know how he ended up trading and listening to those trading signals. But as I have said, in the beginner you will surely make a lot of mistakes, its not bad though and if you think you loss big money here, then think again. Sooner or later your friend are going to recover it because they've learn so much and I'm sure he will be more careful and diligent, as others have said, let this be a lessons learnt.

Baofeng

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Quote from: TrevorS on October 29, 2019, 06:02:21 PM

Personally, I believe that all this could be avoided if:
1. Do not trade on signals
2. It doesn’t matter if you trade in signals or always set your own stop loss, even in the most obvious situations when it seems that there can be no other way.
3. Remember that margin trading can deprive you of your pants at any time. These are extremely high risks.
4. Be prepared for losses. If you take a risk, then accept responsibility for this risk at the time of opening a position, and not after its closure.

Be smart and take care of yourself guys.

1. Yes, I'm sorry but we have been educating people around here and telling them many times not to go or joined any paid or free signals.
2. Same thing, stop/loss, entry/exit plan should be in place as well.
3. Exactly, if you don't know how to handle the risk then it's not for you.
4. Of course, the thing is that your friend involve himself with huge amount of funds in the get go. And I'm not sure if he can afford to lose it, just like that.

I'm sorry for your friends lost, but this is another story of expensive lessons to learn in crypto sphere.

goaldigger

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Quote from: Asmonist on November 08, 2019, 07:28:11 AM

We'll just follow some certain rules and guidelines in trading. Margin trading is somehow too risky and can make you a bigger chances of losses. Relying to something uncertain is too risky and prone to losses. Its better to have a little than risking too much to gain big.

Definitely right, we have to play safe and just trade the money you can afford to lose. There are so many failed stories of traders who are doing a margin trading, i didn’t try this one because I’m not confident that I can earn money thru this one. If you really want to earn big, then you can try this one but of course you must be responsible on your losses.

youdacapt

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GOD is TRUE

learning from the case of deribit in the past few days, makes us have to be sure with the stop-limit or take-profit-limit options, we can follow the signals but also spontaneously with the development of existing trends, this applies equally to other markets. today many are liquidated simply because they maintain long positions at $9300 without using stop loss. We must monitor well when involved with margin trading.

alyssa85

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Quote from: dark08 on October 29, 2019, 06:26:52 PM

Dont trust any signal group its better to built your own strategy on trading in that case you will not blame people if you lose on your trade, sorry to hear that your friend lose a lot of money atleast your friend learn from mistake now if their comeback on trading its better to plan there trade.

This.

By the time they broadcast their signals they already have their positions in place, and their strategy is to sell to an idiot (the person blindly obeying the signals).

LouVandetta

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Please, don't you ever trust any trading signals by others.
Margin trading is no joke, it's risky as hell. You could lose all of your money just like that. And what, using signals as a sign to do some margin trading?
Not even experienced traders can survive in margin trading if they let their guard down even for a moment.
If you don't have enough knowledge about something, let alone trusting your money on other's signal, just don't do it in the first place.

crossabdd

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1. I really don't like the signaling community. because in my mind, the owner of the signal uses its members to make personal profit. because he ordered the member to buy a coin after he bought it and the member made a pump, and the admin sold it.
2. I don't like margins. in my opinion it's like gambling. You put a deposit, and get 2x the capital, but when the wrong position. everything's gone.
3. trade according to personal knowledge. if you don't have enough experience, learn first.

note: there is no good signal community, 80% are pumps and dumps.

Topic: Be careful with margin trading. (story) - page 2. (Read 633 times)