Topic: FOMO of bull market - page 4. (Read 735 times)

I would say the entire concept of leverage is very risky. While you are doing day trading, invest what you have and do not borrow money from your broker. Even though your loss is limited to the money that you are actually holding, but with leverage you are taking additional risk of liquidating your entire principle amount.

I used to day trade but I have completely stopped because I have lost a good amount of money. Leverage made my position worse. So try to stay away from leveraging money and multiplying your risk at the same time.

Trading the future is very risky and requires precision in analyzing the market. If you want to play it safe in future trading, using 2-4x leverage is good and the amount of money is not too large.
I also use leverage below 10x because if it is above that, it could make me rush into making decisions. If the market movement is good, it's okay to use large leverage above 10x, but we also have always to monitor market conditions so we can make immediate decisions.
What is important in trading the future is how we determine when to enter and exit the market and not be too greedy in taking profits.

Still monitor your leverages because the market is tricky. While the emotions are high, don't go along with the other traders that are putting a lot of leverage. 10x of leverage is already a lot and you have probably just caught off guard because you thought that the bulls have arrived already but not yet.

Yes, this is a safer approach if someone's just want a safe leveraging although leverage is not safe at all so I should mean by that with a lesser risk approach and tolerance.

Maybe you should read what I wrote again and not the context you just removed from it alone, but this time, insightfully.

There is a place where you would see in addition that, leverage, if used well, would increase your earnings (trying to encourage you of it). And if you do not get the gist properly, even as I blamed you for believing in the prevailing sentiment and not analysing as you ought to, I still wanted you to realize that high leverage is still good and that you should not be discouraged by the initial failure but just be sure of what you are doing.

Additionally, both low and high leverages are good and have their time of usage, and if you use the high leverage at the right time with the right analysis, you can be very happy with the result.

I hope you get it now.


This is not a play, trading is a serious business. That is how I maximize my earnings and it's left for you to take it or not.

lol, 'I' used leverage so I'm only blaming myself. I already told due to fomo I went with 10x leverage otherwise I stick with my usual 2x-4x, I'm very well aware that 10x is risky bet.


I think it's easy to say from hindsight.

Sorry about your bad trading experience, well, you are at fault as well. You can't just assume that we are in a bullish season and start playing with futures trading anyhow, you get to be wasting money easily like that. Whether or not the market is bullish, you have to know that there will always be retracement/correction. This is why we should not only listen to what people say but also work with our brains and analyse the market often. Yesterday when you claimed you opened this position was even the worst day anyone should place a buy bet. This is evident in the overall market boards and I do not believe that the candlesticks of Chainlink could be bullish at that time, so why did you take the trade, why gamble?

Also, you should not blame the leverage you used, blame yourself and the wrong analysis you made. Did you even analyse the market at all? Because if you do, you will know the right risk for the particular trade you are taking and know you are following the wrong path. And for a day that the daily candlestick was still bearish, you needed a very low leverage to try your luck, this is how you manage your account. It's until that time that you are so sure and the market is plainly in the direction of choice that you can increase your leverage so as to maximize your earning opportunity.

there's most certainly always pullback in some good rally this one is kinda expected to be honest and yes I'd personally never surpass 3-4x leverage, the slight market shake and my money got liquidated that'd feel silly even sillier when there's small correction when 10x leverage along the way my money got liquidated but market still flourishing.
i do agree as you said, when things are never gonna be within expectation and there are too many variable doing high leverage on future would be worst decision ever, considering that this kind of correction happens a lot in cryptocurrency market even more so when we've been having some good price increase that means we're just waiting for the correction to arrive.
quite different when the bullrun was still on its very early stage we could literally throw money into anything and it will double the next day, therefore keep leverage low, just in case.

Margin
Margin ratio
Leverage

You can use those words interchangeably, they mean the same thing. Margin ratio and leverage are commonly used.


I agree with you. You are right.

Apart from leverage, doesn't a margin that is too large also have an influence in determining the liquidation value? We recommend that the margin and leverage used in futures trading also be adjusted so that the liquidation value remains low. It is also important to note that even though we are in a bullish trend, there are several possibilities for a flash dump to occur, even if prices quickly recover and then increase again. Therefore, management is still needed and taken into account.

Not only just that making use of higher leverage but also you should really be watching out on not make yourself that get easily dragged when FOMO hits. Well, we cant really tell if its already  that a bullish run or having that positive rally but always wise to assume that there would really be neither a fake out or simply having those normal corrections as always. The most common human being behavior is that they would really be just that buying on the time that the market is really making out those big long green candles and not into those dumping moments or red ones on which on the time that there would really be some reversal then they would really be finding themselves who get caught on the peak on which it would really be ending up for some people to whine along the way and mostly be ending up on making some cut-losses.

When you are dealing up into this market then it would really be just that normal that corrections do happen and same goes with those FOMO and FUD which these things had always been that a normal
thing for you to encounter. Thing here is that you should really know on how to deal with it because if you dont then you would really be that prone into lots or tons of mistakes.

I get your point and where you're coming from but reading your reply made me ask questions.
Is it really greed though?
I mean, he followed his analysis and rightly so, it just turned out to be wrong. If you saw him making that decision yesterday would you have stopped him? Because to be frank, it wasn't a very stupid thing to do. Bitcoin price kept pumping, one would think it was chasing $50k before the end of the year, and then all of a sudden.
So can you blame him for that and call it greed?


Good advice, but how long do you stick to your strategy even though changing strategies may take you higher?
"The bigger the risk, the bigger the reward" isn't it? So how's he going to get a big reward if he doesn't want to take a big risk? I know he should not go beyond what he's ready to lose but isn't there a thin line between taking calculated risk and investing more than you're able to lose?

If you know, you know.

If you already in this place for a very long time, you'll know things like that could happen with high chances. This time, it isn't 2014 or 2015 where there are less money injected in Crypto it is more complicated now. Institutions getting their bags and bags of crypto made me think I'm just a fish to in the market, and so I changed my market approach. Well probably that's a lesson for you to learn in trading, don't FOMO make yourself secured by keeping your leverages slow so you got a lot of room to pull out your funds. Stop loss wouldn't handle the dip that happened last night.

The bull season on a normal sense shouldn't be the period for us to begin to exercise some level of doubts about our investments, but the leverage positions we sometimes took were sometimes more than we could comprehend along with, literally the market should keep pumping during the bullrun, but what leverage position have we taken, sometimes we make decisions on the level of risk we took on ourse

That's the greed which made you take the extra leverage and the bad luck that made you lose your money to your greed.
Stick to your strategy because that's what you have planned and you shouldn't change it out of emotions.
It's good that you have learnt from your mistake and taken it as a lesson and make sure not to repeat the mistake.

Well market is really a traitor and we must deal with it. Usually market trnd to correct at a least time we dont expect it. Like today the market crash that instantly without any sign of it and many got liquidated even the bull seems knocking already. Anyway leverage trading is risky and dont really do what you cant deal with cause it will hurt you that much.

That's sad you were also liquidated, actually millions of dollars were liquidated due to that quick dump, which you can see in the pic below, when I woke up today, and I read the news on a telegram channel that BTC made a downtrend move (unexpected one) then I was shocked because it should not occur in the first place, till now I did not see any legit reason behind it.

Well, the point is this was so quick and almost $377.98 million were liquidated. The crash happened on 1-hour candle and it really made people sick, you must be frustrated too, I will say it was not your mistake to go for 10X it was just that luck was not on your side and now you think this was your mistake but it is good to find mistakes in yourself so when unexpected things like this will occur you can manage risk so your money can't be lost.

Trading with leverage with assets such as altcoins, in which trading trends can completely change suddenly and without any indicators to support this, is considered a failed trading strategy. I hope it was a useful lesson and that you learned from it

I completely agree with your analysis. You’re right on the fact that it's a good lesson for anyone involved in crypto trading, particularly the significance of dealing with risk and not giving in to impulsiveness.
While the recent market dip might seem discouraging, it actually presents an excellent opportunity to invest. Especially in altcoins and bitcoins. With many cryptocurrencies currently undervalued, this is a chance to accumulate assets at lower prices.
That’s what I do via  diversifying and rebalancing my portfolio. It’s a way to accumulate while keeping your initial investment while DCA bitcoin gradually.
If you have any questions you can contact me via my Discord: https://discord.gg/2TFSrzunK3

Using too much leverage can lead to liquidation. For coins like Chainlink, it is good not to go more than 2x. The only coin that I can go up to 4 or 5x is bitcoin. But for altcoins, I go for 2x which I am still afraid of at times, especially if I want to open the position for a long period of time. Sometimes I prefer to just use 0.5x to 1x and not going beyond that.

The market needs a correction because it was heated too much recent weeks. Coinglass website provides those data and it is free, no need to buy Premium account to access those data on Coinglass.

• https://www.coinglass.com/FundingRate
• https://www.coinglass.com/BitcoinOpenInterest
• Liquidation (data, map, heat map)
  
  • https://www.coinglass.com/LiquidationData
  • https://www.coinglass.com/pro/futures/LiquidationMap
  • https://www.coinglass.com/pro/futures/LiquidationHeatMap

The total liquidation value in the past 24 hours surpasses $400M and nearly 50% of it comes from BTC and ETH.