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Topic: Is this also your strategy to avoid hitting your stop loss early? (Read 449 times)

member
Activity: 322
Merit: 10
it is common practice in trading to start with a low margin and low leverage, especially when you are new or unsure about a particular trade. This approach can help you reduce the risk of significant losses and increase your chances of success, this is a best practice for a newbie

Ultimately, the ideal leverage and margin levels depend on your personal risk tolerance, experience, and overall trading strategy
legendary
Activity: 2534
Merit: 1338
For those traders that do worry about liquidation whether it's just low leverage or he's into a higher one, it's better to go with the spot market.

You'll have no worry and what you earn it is as-is with it based on how much you trade and the gain it had in the market with the pair you trade.

The same as you, I'm staying with the spot market and I do not worry if I'll be liquidated or not and I can also hold there if I want to.
The fact that you can't get rich overnight with regular spot trading is the main reason why those people do not do it. I am not saying that you can't, but the way it's done is not that simple and it takes time, and that is why we see a ton of people who do high leverage trading in crypto. I know some famous trader turned 70k+ into 1+ million dollars during the hype period for example, you couldn't make that without leverage, or at least it would require you to find the highest earners constantly.

This is why they jump into higher risk trading methods, because they believe that they could make a lot of money that way and that's the main problem.
This is without a doubt the main reason for choosing to use high leverage, but it is a mistake no matter how we look at it, after all the more leverage you use the higher the risk you are taking, the person that made so much money from such a low amount of money was probably lucky and he does not know it, after all if 100 people do the same and one gets successful then that person gets all the attention and people ask for his advice, but what they do not see is the other 99 people that lost everything to the markets relatively quickly by taking such a high risk.
legendary
Activity: 3318
Merit: 1128
For those traders that do worry about liquidation whether it's just low leverage or he's into a higher one, it's better to go with the spot market.

You'll have no worry and what you earn it is as-is with it based on how much you trade and the gain it had in the market with the pair you trade.

The same as you, I'm staying with the spot market and I do not worry if I'll be liquidated or not and I can also hold there if I want to.
The fact that you can't get rich overnight with regular spot trading is the main reason why those people do not do it. I am not saying that you can't, but the way it's done is not that simple and it takes time, and that is why we see a ton of people who do high leverage trading in crypto. I know some famous trader turned 70k+ into 1+ million dollars during the hype period for example, you couldn't make that without leverage, or at least it would require you to find the highest earners constantly.

This is why they jump into higher risk trading methods, because they believe that they could make a lot of money that way and that's the main problem.
legendary
Activity: 2338
Merit: 1084
zknodes.org
I prefer to do it in the spot market. With low Margin and low Laverege this makes us take advantage, because we can control it. But if liquidation still worries you, I think the spot market is the safest place to trade. You will keep everything in your account safe if you can use the spot market strategy well. Most of the strategies we use make us confused in trading, to be more profitable in trading I can still rely on the spot market.
Actually low or high leverage can all be set. It's just that the risk of high leverage will certainly have high liquidation, this is not recommended. All levels can have advantages and disadvantages so hazard management and analysis is essential. I also prefer the Spot market because the risk seems lower. The strategy adjusts to what you think is comfortable and profitable, no need to feel like a hassle. Because I believe everyone has a different strategy.
hero member
Activity: 3150
Merit: 636
DGbet.fun - Crypto Sportsbook
I prefer to do it in the spot market. With low Margin and low Laverege this makes us take advantage, because we can control it. But if liquidation still worries you, I think the spot market is the safest place to trade. You will keep everything in your account safe if you can use the spot market strategy well. Most of the strategies we use make us confused in trading, to be more profitable in trading I can still rely on the spot market.
For those traders that do worry about liquidation whether it's just low leverage or he's into a higher one, it's better to go with the spot market.

You'll have no worry and what you earn it is as-is with it based on how much you trade and the gain it had in the market with the pair you trade.

The same as you, I'm staying with the spot market and I do not worry if I'll be liquidated or not and I can also hold there if I want to.
hero member
Activity: 2072
Merit: 656
royalstarscasino.com
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
Taking low margin and leverage means taking lower risks. Although this also means lower profits to be gained. But as long as we are consistent, this doesn't matter. I personally also prefer to choose using low margin and leverage when I was still trading in the future or with leverage. For, I am not a high-risk taker enough.
However, everyone must have their own choices, sometimes, some traders (mostly high risk-takers) will prefer to choose high leverage to gain high profits even in only few trading activities.
Once more, it is personal preference based on each strategy and lso management of fund and risks. They are related each other.
full member
Activity: 868
Merit: 106
I prefer to do it in the spot market. With low Margin and low Laverege this makes us take advantage, because we can control it. But if liquidation still worries you, I think the spot market is the safest place to trade. You will keep everything in your account safe if you can use the spot market strategy well. Most of the strategies we use make us confused in trading, to be more profitable in trading I can still rely on the spot market.
hero member
Activity: 2114
Merit: 619
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
I don't think you should calculate in this manner, rather than this way just simply take the trade with a stop loss and take profit, your stop loss should be defined by the maximum amount of money you are willing to lose on the trade, based on this amount you should start and end the trade  if it does not goes into profit, adding up to profitable trades is a good idea but this is successful only in case of a few patterns like in cases of breakout you might not get a chance to enter on a second point because move could be so quick.
legendary
Activity: 2534
Merit: 1338
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
Test it out for yourself if it does work because you wouldnt know if it does work until you do apply it into  your trades.Putting up shallow Stop losses could really easily be triggered or hit up because of volatility and since we

know that we arent dealing with forex or indices or stocks which does have minimal movements but here on crypto space where 5-10% movement is really just like default thats why monitoring your stop losses would be

good or much better if you dont set anything at all specially if you are just dealing with active trading then it wont really be that necessary.

Also, it depends on the coin itself. Because each coin has their degree of trading activity. Some move faster than the others, depending on how it is heavily traded and how much volatility is involved. Because for example, in small cap coins, the movement is easy to manipulate even with the injection of small funds, hence, you will see a large percentage of change. You can always try your hypothesis in this market. But better use small funds if you are not ready with the outcome.
Or even better before you use any strategy in a live market it is necessary to paper trade the strategy and if it does work then it makes sense to begin to use a little bit of money at real markets to see if we can make it work for real, however if the paper trade test indicates that this is not a reliable strategy then you have saved yourself the trouble, time and money you could have lost, something that is not small in a market in which the competition is so high and it is difficult to obtain profits from it.
full member
Activity: 1848
Merit: 158
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
Test it out for yourself if it does work because you wouldnt know if it does work until you do apply it into  your trades.Putting up shallow Stop losses could really easily be triggered or hit up because of volatility and since we

know that we arent dealing with forex or indices or stocks which does have minimal movements but here on crypto space where 5-10% movement is really just like default thats why monitoring your stop losses would be

good or much better if you dont set anything at all specially if you are just dealing with active trading then it wont really be that necessary.

Also, it depends on the coin itself. Because each coin has their degree of trading activity. Some move faster than the others, depending on how it is heavily traded and how much volatility is involved. Because for example, in small cap coins, the movement is easy to manipulate even with the injection of small funds, hence, you will see a large percentage of change. You can always try your hypothesis in this market. But better use small funds if you are not ready with the outcome.
hero member
Activity: 2968
Merit: 687
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
Test it out for yourself if it does work because you wouldnt know if it does work until you do apply it into  your trades.Putting up shallow Stop losses could really easily be triggered or hit up because of volatility and since we

know that we arent dealing with forex or indices or stocks which does have minimal movements but here on crypto space where 5-10% movement is really just like default thats why monitoring your stop losses would be

good or much better if you dont set anything at all specially if you are just dealing with active trading then it wont really be that necessary.
hero member
Activity: 2814
Merit: 734
Bitcoin is GOD
by using a small leverage in order to have a small risk too, then this seems to be an exercise. but we should not be tempted to immediately use large leverage, because if we succeed with small leverage in a row, it will come to mind to use large leverage in the hope of getting big profits soon. the wrong way for things like this, because they have not been able to control their own psychology. even though it is patience that must be maintained until we understand market habits work
I have not really thought about it but this is an additional risk, if people use a small amount of leverage and they happen to do well just out of random luck then they are bound to try to increase the level of leverage they have been using thinking they have master it already, and then when they do happen to make a mistake and they read the market wrong then that is when they can lose massive amounts of money.

So I still stand by my previous recommendation, only expert traders should make use of leverage and most of the time those that choose to not listen to this simple advice will have to find out the hard way why this was  a bad idea.
full member
Activity: 1050
Merit: 100
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
Actually it is better to have a start with this method if you're a beginner, firstly it help to cut loss and thereby reducing the extent at which you may loose your coins, but why some people choose this method probably is to participate on many Leverage positions within a day or short period of time, they are the the scalding and sometimes swing traders, but i think the best advice here is for you to discover your own best trading strategies.
The method is usually helpful if you are a regular trader, like maybe if it is your full time job. That way you would be a trader anyway and you should be good at it, if you are not good at it then why are you doing it as a full time job. This results with a situation where you would be making a profit a bit bigger and would allow you to profit a lot more.

This is how people approach leverage, it is a method where you know you should be right because it is your job and if you are right then why not make a bit more profit. Not everyone makes a profit, but that is the type of thinking they do before then join in. All others who do i,t do it because they have no idea.
by using a small leverage in order to have a small risk too, then this seems to be an exercise. but we should not be tempted to immediately use large leverage, because if we succeed with small leverage in a row, it will come to mind to use large leverage in the hope of getting big profits soon. the wrong way for things like this, because they have not been able to control their own psychology. even though it is patience that must be maintained until we understand market habits work
member
Activity: 700
Merit: 10
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Why not try trading with spot at first place and then become a pro at it.
After that may be you can try using leverage and try to increase it from 2x to 5x as and when you progress at your trading skills.

That makes too much sense, today newbies do not want to go through the trouble of learning how to walk and they want to run from the beginning and reach their goal as soon as possible, the truth is that very few people should be using leverage because as we know if you happen to make even a single mistake while you are using it then the consequences for you can be terrible, it is better to master spot trading first and once you have been profitable for years then you could try leverage trading, but it seems no one wants to take their time during their trading journey anymore.
leveraged trading we usually fight with lots, many of the novice traders can't count lots so they trade with over lots, which can result in margin calls. therefore for novice traders must be able to train psychology, or if not using spot trading it will be safer for the capital used. the most important thing is that if we want to learn then we will gradually understand by itself, and also determine the attitude of ourselves it is very important to know our progress in trading
hero member
Activity: 2828
Merit: 518
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Why not try trading with spot at first place and then become a pro at it.
After that may be you can try using leverage and try to increase it from 2x to 5x as and when you progress at your trading skills.

This becomes hard for OP as he is trying to put himself in a place where he is not yet fully gain knowledge about trading. It is better for OP to start learning spot trading first before stepping up on leverage and margin trading. I'd presume, in this way this makes him fully understand how trading works.
No rushing OP and have to be aware that leverage trading is somewhat difficult for the beginner and those who just have limited knowledge. It is found to be the best to start from the basic (spot trading) and make use of that experience for the next level.
legendary
Activity: 3318
Merit: 1128
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
Actually it is better to have a start with this method if you're a beginner, firstly it help to cut loss and thereby reducing the extent at which you may loose your coins, but why some people choose this method probably is to participate on many Leverage positions within a day or short period of time, they are the the scalding and sometimes swing traders, but i think the best advice here is for you to discover your own best trading strategies.
The method is usually helpful if you are a regular trader, like maybe if it is your full time job. That way you would be a trader anyway and you should be good at it, if you are not good at it then why are you doing it as a full time job. This results with a situation where you would be making a profit a bit bigger and would allow you to profit a lot more.

This is how people approach leverage, it is a method where you know you should be right because it is your job and if you are right then why not make a bit more profit. Not everyone makes a profit, but that is the type of thinking they do before then join in. All others who do i,t do it because they have no idea.
legendary
Activity: 2534
Merit: 1338
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Why not try trading with spot at first place and then become a pro at it.
After that may be you can try using leverage and try to increase it from 2x to 5x as and when you progress at your trading skills.

That makes too much sense, today newbies do not want to go through the trouble of learning how to walk and they want to run from the beginning and reach their goal as soon as possible, the truth is that very few people should be using leverage because as we know if you happen to make even a single mistake while you are using it then the consequences for you can be terrible, it is better to master spot trading first and once you have been profitable for years then you could try leverage trading, but it seems no one wants to take their time during their trading journey anymore.
jr. member
Activity: 140
Merit: 2
This is a kind of reinsurance, a very cautious strategy.
hero member
Activity: 2702
Merit: 716
Nothing lasts forever
I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?

Why not try trading with spot at first place and then become a pro at it.
After that may be you can try using leverage and try to increase it from 2x to 5x as and when you progress at your trading skills.
copper member
Activity: 2940
Merit: 1280
https://linktr.ee/crwthopia
Interesting. I need more info from you on Gunbot. I used to read about it a lot earlier but somehow I dropped the idea as it needs proper settings and if we are having set up in wrong way then things could really turn upside down. Though I had this trial earlier I might just start it over again with detailed info. Im not sure but I am hearing a lot about bot trading these days out of know where. Lolz. I might ask you @crwth in pm. Smiley
Gunbot has been innovating a lot because for sure there's a learning curve in order to completely use it correctly but with the Gunbot School and how it became social, it has become a lot easier to learn it because there would be people to guide you throughout the journey with Gunbot.

You could also PM me if you have any questions, I would be willing to assist you for sure.
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