Topic: Is margin trading good for beginners ? - page 3. (Read 770 times)
You can try but of course it would be really risky, there are many ways to learn like books, articles, now with internet and youtube we can learn a lot without limitation. One thing of course is through experience I believe that you will only fully understand one thing if you experience it so if you try margin trading you will know the rights and wrongs and especially you will know and understand the risk in margin trading.
Hello Everyone.
I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?
I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?
In my own opinion, this is much riskier than the traditional manual spot trading. If you want to be profitable in margin trading, you need to be skilled enough to execute that trade. However, that won’t be easy.
However, if you still want to try margin trading, only invest and trade an amount that you can afford losing. It’s better for you to learn more about margin trading first in various free sources and different strategies as well.
Margin trading require skill to execute profitably! I noticed that top tier centralized cryptocurrency exchange were pushing agressively for their users to margin trade on their platform. I think this is like trap for users regardless of your experience, margin trade risk is very high and you are likely going to be liquidated in a very volatile market like crypto. Beside, who ensure fair play between traders, exchanges?
margin trading is meant for professional traders not beginners, please avoid it for now if you were planning on trying it out.
In fact, not only margin trading is intended for professional traders, but also spot trading as well. There is a false opinion that you can become a trader and get a big profit without learning the craft of trading. Without the necessary knowledge, it is very easy to lose your money, but the risk of losing it will increase tenfold if a beginner tries margin trading.
Doing margin trading without having much skills in spot trading will make you feel hard to make a profit because you need to always check on where the price will be and if you are late to execute, you will lose your money. Beside that, if you just gamble with your money doing margin trading, I doubt you will get your lucky to make a profit. I can only suggest you to use spot trading while you can learn more about margin trading and if you think your skills is enough to use margin trading, you can add small money to test your skills before you add more money.
So, it would be better for the beginners and is difficult too.
That is not true, margin trading is not better for beginners, of they try it they will lose, it is bad for beginners to think the way to make money is margin trading, the beginnier will lose, lead to feel of emotion, the best time to lose more until the whole money are gone, do not advise beginners to gamble.
Margin trading may sound like a great way to boost your returns, but know what you're getting into. Contributing with margin, or borrowed cash, might appear like a great way to boost your returns. But it's imperative for financial specialists to realize that it's not that basic. So, it would be better for the beginners and is difficult too.
all possibilities can happen if you start trading whether you experience profits or losses, therefore if you want to start playing trading, you better study in detail to avoid the risk of loss. for the profit that will be obtained I think it is very likely because the very significant price movements every day make traders to take very large profit.
Are you aware of any opportunity for availing free money for margin trading?
Or are you referring only demo-money kind of thing for practicing real time trading environment?
Not sure if you've heard of Stormgain but they are a crypto + stock exchange with a free cloud "mining" faucet. Whatever you withdraw from the faucet is used for margin trading.
If you're interested to start with a free USDT 3, you can visit the link on my website, under Passive Income Apps. It's quite neat.
Always i use Spot trade for my crypto trading. But If you are newbe on Crypto trading platform and you want make some money from crypto trading then Your better option is increase your knowledge first about Trading, this is not matter that which trading option is good for Newbe. Nowadays Everybody think that crypto trading is most easy way for make money, but it is not Correct.
margin trading is meant for professional traders not beginners, please avoid it for now if you were planning on trying it out.
Exactly this is what in my mind as well to suggest to OP (I guess they might have decided about margin trading by this time already). Anyhow, for all the people who are having idea about margin trading, must need to follow this topic kind of things to stay safer in crypto trading. I read that some governments are in plan to ban margin trading completely due to higher levels of manipulations.In margin environments, there are lots of possibilities to make you liquidated when you have open positions will availed higher leverages and some exchanges are malpracticing that as an advantage to make easier commissions.
for beginners I think it is better to use free money according to their abilities, so that they are expected to be more emotionally calm and not easily panic sell, because that is the main cause of traders experiencing losses
Are you aware of any opportunity for availing free money for margin trading?Or are you referring only demo-money kind of thing for practicing real time trading environment?
But in my opinion, for beginners margin trading is not at all recommended even they are getting free money to get started with.
Emotion control must be very important in trading, I agree still even you are very good in emotion control while trading you may get trapped in margin trading because the risks are multiplying according to leverage availed. So, emotion control and money management tactics are easier to follow while in spot trading and anyone imagining same kind of thing for margin trading as well then eventually find its cruel nature in the end.
most likely a novice trader experiences a huge loss of money, even experienced people sometimes still experience losses, even though they do not run out of capital. therefore for beginners I think it is better to use free money according to their abilities, so that they are expected to be more emotionally calm and not easily panic sell, because that is the main cause of traders experiencing losses
But, if you notice that even pro traders are facing hitting stoploss time to time due to unpredictable volatile nature of bitcoins and all these are based on spot trading. It means even pro traders are struggling for consistency in spot trading then in my opinion also that margin trading is too dangers for experienced traders as well. We better stick within sport trading to eliminate the risks at massive percentage.
Thanks to the use of stop-loss, experienced traders maintain their balance, while reducing possible losses. And this also distinguishes them from newcomers who rarely use this feature, and, as a rule, the balance of newcomers will be liquidated if they use margin trading, without using stop-loss.
if we didnt trade well in spot market , better to avoid using future trade. we have high risk that may occur when we make any mistake , its not tolerate in future trades and we have to totally understand in which level we enter and exit.
Margin trading is associated with a high risk of losing money, so it is also dangerous for both beginners and experienced traders. But unlike beginners, experienced traders, thanks to their knowledge and experience, can significantly reduce the risk of losing money.
experienced trader have good knowledge in spot market so they could applied it in future market , but for beginner better to avoid it.
I also expect a beginner or newbie to have been earning profits consistently in spot trading where risk is minimal and gain more experience before switching over to margin trading be it cross or isolated margin, cryptos are highly volatile the rate at which newbies get liquidated while future trading or margin trading with high leverages is high, however due to greediness and the impression of getting rich quick a lot of them defies advice and margin trade in a bid to becoming millionaire overnight but ended up being liquidated or related. Margin trading is associated with a high risk of losing money, so it is also dangerous for both beginners and experienced traders. But unlike beginners, experienced traders, thanks to their knowledge and experience, can significantly reduce the risk of losing money.
I don't think so, this is not recommended for new traders because the risk is too big and we don't know to handle stress when struggles come on trading. Choosing over holding will be a good strategy, instead of margin trading because you're just going to wait while you let your coins increase a sustainable value. For sure it's all worth it by time you'll meet your target price.
Trading and Holding still correspond to risk. Some choose to trade as they think it was a good and more profitable decision, I can't say that they are right or wrong as it was their choice and for sure they know already what will happen to them. Like, spot and margin trading is at a different level. I'd never know more about margin trading as I never tried it in the first place as I was only stopped at spot trading where I felt so easy than margin trading. And just like you've said, trading is risky and this was not the right place for the noobs and much more if they choose Margin trading.
if we didnt trade well in spot market , better to avoid using future trade. we have high risk that may occur when we make any mistake , its not tolerate in future trades and we have to totally understand in which level we enter and exit.
this is be biggest mistakes by many traders, their skill not enough to generate profits consistently but in hurry using futures trade. It should not did , because in future trade our balance will decrease alot when make single mistake. learn well and improve our skill before start trade in future, it could give us huge gain but also could make us as poor man in single trade.It is very dangerous and high risk if a beginner who does not have good trading skills tries futures trading, it will only make beginners lose money
and become traumatized to trade again. It is better for beginners to start from demo trading, after that proceed with spot trading first, must go
through successive steps to be able to do futures trading. For me who has been trading for 5 years, it is still difficult to make profit from futures
trading, especially for inexperienced beginners.
I don't think so, this is not recommended for new traders because the risk is too big and we don't know to handle stress when struggles come on trading. Choosing over holding will be a good strategy, instead of margin trading because you're just going to wait while you let your coins increase a sustainable value. For sure it's all worth it by time you'll meet your target price.
if we didnt trade well in spot market , better to avoid using future trade. we have high risk that may occur when we make any mistake , its not tolerate in future trades and we have to totally understand in which level we enter and exit.
this is be biggest mistakes by many traders, their skill not enough to generate profits consistently but in hurry using futures trade. It should not did , because in future trade our balance will decrease alot when make single mistake. learn well and improve our skill before start trade in future, it could give us huge gain but also could make us as poor man in single trade.
if we didnt trade well in spot market , better to avoid using future trade. we have high risk that may occur when we make any mistake , its not tolerate in future trades and we have to totally understand in which level we enter and exit.
Well said, mate. If you can't do good in the spot, there's no chance that you'll do better in margin trading. The risk it has and it's literally a gamble. I saw people that have been doing good with it but they are tolerable and the amount they use there is just with the little that they have. I'm happy to see those people sharing their gains with futures but not because others can make it, you'll also jump on the boat without any preparation because it's not really intended for everyone who just wishes to earn there. You have to do what it takes for you to be profitable and tolerate the risk that it gives you if you start doing futures/margin. Jump to: