Leverage Trading - page 2. | Bitcointalksearch.org

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Quote from: Mamun74 on January 31, 2022, 11:57:45 AM

When You start trading then i think you need to know about trading and skill. Experience trader they can get good return in trading. Leverage Trading Isn't easy because Very bad experiencing with leverage Trading. When people very emotional with trading Then they wrong decision and lost their investment money. Patience and control your emotion is necessary for trade.

But it’s a fact that 90% of traders lose their capital to the 10% most profitable of traders. There’s always someone who is better than you, more motivated than you, hungrier than you. It’s a competition.

Plus most of us plebs overestimate our skills, this video illustrates what we actually are, https://www.youtube.com/watch?v=ktOL-SkHVdM

Mamun74

full member

Activity: 1358

Merit: 104

When You start trading then i think you need to know about trading and skill.Experience trader they can get good return in trading. Leverage Trading Isn't easy because Very bad experiencing with leverage Trading. When people very emotional with trading Then they wrong decision and lost their investment money. Patience and control your emotion is necessary for trade.

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Quote from: ChrisPop on January 30, 2022, 04:41:51 PM

$5000 with 1x leverage is essentially buying spot - so you're buying $5k worth of BTC.
$100 with 50x leverage = controlling a $5000 long/short position with only 100 bucks. The benefit is you can use the rest of the capital for other trades or endeavours. That's the beauty of leverage, but as you probably know it is a double-edged sword. A difference between buying spot and using leverage is that you are exposed to the funding and margin rate.

Keep in mind that you are going to pay extra fees when the engine liquidates you. As a tip - you can set a stop order just above/below the liquidation price so you don't get charged "for free". I can't think of any other difference atm.

But a small move against your trade, you are liquidated and quickly lose $100. If you really need your money to be used somewhere else, then don’t trade. Capital used for trading and investments should only be for trading and investments. Don’t mix them with your monthly budget for expenses, or your savings. I learned that lesson, the hard way.

ChrisPop

legendary

Activity: 2310

Merit: 1035

Not your Keys, Not your Bitcoins

$5000 with 1x leverage is essentially buying spot - so you're buying $5k worth of BTC.
$100 with 50x leverage = controlling a $5000 long/short position with only 100 bucks. The benefit is you can use the rest of the capital for other trades or endeavours. That's the beauty of leverage, but as you probably know it is a double-edged sword. A difference between buying spot and using leverage is that you are exposed to the funding and margin rate.

Keep in mind that you are going to pay extra fees when the engine liquidates you. As a tip - you can set a stop order just above/below the liquidation price so you don't get charged "for free". I can't think of any other difference atm.

antmex

jr. member

Activity: 42

Merit: 27

I only trade with leverage in the 1m scalp trading. Watching and strictly money management is recommend. Also no Emotion. Loss is always a part of „the game“

tvplus006

legendary

Activity: 2268

Merit: 1655

To the Moon

Quote from: Wind_FURY on January 30, 2022, 06:17:40 AM

Debatable, that’s why 90% of active traders lose. If I ask you, and you honestly answered, what percentage of the people in this forum who would say that they consider themselves to be an “experienced active trader” are truly profitable in trading?

If we take into account the messages that are left on this forum, then 90% trade with leverage and make a profit at the same time)) I understand that traders are wishful thinking and thus trying to raise their authority in front of others. But still, I am sure that a trader cannot do without margin trading, at least when opening short orders.

pressing207

sr. member

Activity: 537

Merit: 251

Quote from: Wind_FURY on January 30, 2022, 08:01:17 AM

Quote from: pressing207 on January 30, 2022, 06:53:57 AM

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

That’s not always the truth. Professional traders also use leverage, the right way. But if the trade is made with a capital amount of $100.00, and leveraged to 50x, then yes, it definitely indicates that the owner either is finacially insolvent, OR wants to gamble.

All professional traders sit in generalized teams. No one asks them. Alone, they are all geniuses. And the result is a complete zero. Whales are the generalized brain of little morons.

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Quote from: pressing207 on January 30, 2022, 06:53:57 AM

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

That’s not always the truth. Professional traders also use leverage, the right way. But if the trade is made with a capital amount of $100.00, and leveraged to 50x, then yes, it definitely indicates that the owner either is finacially insolvent, OR wants to gamble.

pressing207

sr. member

Activity: 537

Merit: 251

Quote from: Mauser on January 30, 2022, 06:56:45 AM

Reading through the comments here it seems that most people here think that leverage trading is bad for beginners and will very likely end in a collapse, whereas for experienced trader it's a good way to increase returns. I disagree with that, even the most experienced trader can get into trouble when using leverage. Knowledge and experience is no guarantee that our leveraged positions are going to be profitable and not blow up. For me leverage means to reduce the possible margin of error we can have in our trades. We basically move ourselves closer to the edge of a cliff, while having a chance for higher returns. I might be so critical because of bad experiences myself with leverage. With a traditional long position we can always sit out a drop in prices and make our money back eventually, with a leveraged position we will be forced to close our position or lose all the money.

You must be a very young man. Good luck to you! There are no exceptions in this life. There is a concept of swap. (broker's interest). It is impossible to hold long positions for a long time. And remember me later. Hello to your wife.

Mauser

hero member

Activity: 1694

Merit: 516

Reading through the comments here it seems that most people here think that leverage trading is bad for beginners and will very likely end in a collapse, whereas for experienced trader it's a good way to increase returns. I disagree with that, even the most experienced trader can get into trouble when using leverage. Knowledge and experience is no guarantee that our leveraged positions are going to be profitable and not blow up. For me leverage means to reduce the possible margin of error we can have in our trades. We basically move ourselves closer to the edge of a cliff, while having a chance for higher returns. I might be so critical because of bad experiences myself with leverage. With a traditional long position we can always sit out a drop in prices and make our money back eventually, with a leveraged position we will be forced to close our position or lose all the money.

pressing207

sr. member

Activity: 537

Merit: 251

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Quote from: Wexnident on January 29, 2022, 07:23:57 AM

Quote from: Wind_FURY on January 29, 2022, 06:53:56 AM

Quote from: tvplus006 on January 28, 2022, 05:11:43 PM

Quote from: pressing207 on January 27, 2022, 01:17:36 PM

Any trade with leverage leads to a complete collapse. There are practically no people capable of controlling their even mental state for a long time. This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots, although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

Well, it is relating to newbies instead of experienced traders though. I guess what OP was saying was about how newbie traders would "always" experience breakdowns and stressful experience, compared to experienced traders, who experiences everything all the same BUT they do know how to handle their emotions properly and would rarely let it run out of control.

Debatable, that’s why 90% of active traders lose. If I ask you, and you honestly answered, what percentage of the people in this forum who would say that they consider themselves to be an “experienced active trader” are truly profitable in trading?

Quote

It's probably easy in terms of switching since you have experience, but the risks would still have the same problems all the same.

“Probably”.

Benefactor

hero member

Activity: 1260

Merit: 504

Ultimately there is a creator and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. However after some nerve destroying encounters that individual remembered their means and is more calculative this day. On second thought, there are even capable brokers who avoid influence exchanging at all cost.

CryptoYar

hero member

Activity: 1064

Merit: 639

Quote from: pressing207 on January 27, 2022, 01:17:36 PM

Any trade with leverage leads to a complete collapse

not really! If you calculate your risk and reward and trade with stop loss then no worries. I mean You gotta define that if my prediction fails in this trade then I can bear x% loss and I will book my profit at this particular price. This way you can't lose your whole money otherwise you'll receive an email from your exchange about liquidation Grin

Quote from: Wind_FURY on January 29, 2022, 06:53:56 AM

~ switching to leveraged trading is not as easy as your post is telling everyone.

True!
The spot is quite easy and you don't lose anything until you sell your tokens ( you can hold till price recovery) on the other hand leverage trading is quick and if your prediction goes against. you'll lose money.

Wexnident

hero member

Activity: 2576

Merit: 666

I don't request loans~

Quote from: Wind_FURY on January 29, 2022, 06:53:56 AM

Quote from: tvplus006 on January 28, 2022, 05:11:43 PM

Quote from: pressing207 on January 27, 2022, 01:17:36 PM

Any trade with leverage leads to a complete collapse. There are practically no people capable of controlling their even mental state for a long time. This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots, although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

Well, it is relating to newbies instead of experienced traders though. I guess what OP was saying was about how newbie traders would "always" experience breakdowns and stressful experience, compared to experienced traders, who experiences everything all the same BUT they do know how to handle their emotions properly and would rarely let it run out of control. It's probably easy in terms of switching since you have experience, but the risks would still have the same problems all the same.

Wind_FURY

legendary

Activity: 2898

Merit: 1823

Quote from: tvplus006 on January 28, 2022, 05:11:43 PM

Quote from: pressing207 on January 27, 2022, 01:17:36 PM

Any trade with leverage leads to a complete collapse. There are practically no people capable of controlling their even mental state for a long time. This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots, although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

EdenHazard

legendary

Activity: 2674

Merit: 1048

Quote from: AakZaki on January 26, 2022, 11:49:26 AM

Quote from: EdenHazard on January 24, 2022, 07:39:17 PM

~snip~

i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.

It's very risky, but maybe it will also make you quickly have a lot of money. Maybe if your capital is large take levergae 5x that alone is enough. Remember you have to have more remaining funds to avoid liquidation. You should also think of alternaive strategies to avoid greater losses. I don't like this trade, I prefer spot trading because there is less risk than leveraged or future trading. Maybe if you learn it you can do it but everyone has their own pleasure to get the best profit.

Well actually it's applied for no matter huge or small capital.

You must be in the lowest possible of leverage , you know what? The flash drop and or the flash pump is the nightmare for the leverage trader and nobody knows when that shit will do occurred. So yeah the dark side of leverage trading much more popular to talk than the bright side one , that's the fact unfortunately.

tvplus006

legendary

Activity: 2268

Merit: 1655

To the Moon

Quote from: pressing207 on January 27, 2022, 01:17:36 PM

Any trade with leverage leads to a complete collapse. There are practically no people capable of controlling their even mental state for a long time. This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

Lanatsa

hero member

Activity: 2968

Merit: 687

Quote from: wxa7115 on January 27, 2022, 01:31:53 PM

Quote from: cabron on January 21, 2022, 10:44:01 PM

Quote from: wxa7115 on January 21, 2022, 01:01:55 PM

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.

I do not think they actually forget that the market can move in different directions, it is just they are so convinced on what they do that they never consider even the possibility of the market moving against their prediction.

This is one of the reasons why people act so emotional when their prediction is wrong as they take it personally if the market does not follow their prediction, forgetting that the markets do not really care about them at all or about any trader or investor in particular and that the ones that should adapt to its movements are themselves and not the other way around.

You should really versatile on the first place on which you would really be needing that kind of mindset since it could possibly move which is totally opposite on what you had predicted.One of the most

important tools which you could make use is having that Stop-loss.This might really be not important for some leverage traders but if you do want to trade conservatively then consider on using one

so that you wouldn't really be that liquidated easily just like other traders who had just stepped their foot into leverage but don't know on how badly they could able to experience losses
if they don't know on what they are doing.

wxa7115

hero member

Activity: 2702

Merit: 704

Bitcoin is GOD

Quote from: cabron on January 21, 2022, 10:44:01 PM

Quote from: wxa7115 on January 21, 2022, 01:01:55 PM

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.

I do not think they actually forget that the market can move in different directions, it is just they are so convinced on what they do that they never consider even the possibility of the market moving against their prediction.

This is one of the reasons why people act so emotional when their prediction is wrong as they take it personally if the market does not follow their prediction, forgetting that the markets do not really care about them at all or about any trader or investor in particular and that the ones that should adapt to its movements are themselves and not the other way around.

Topic: Leverage Trading - page 2. (Read 828 times)