Margin trading victims and how to avoid losses

Mark_R

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Quote from: Nellayar on July 02, 2019, 09:35:54 AM

Quote from: dark08 on June 14, 2019, 09:38:26 AM

High leverage is deadly look what happen to Chinese crypto fund management firm founder that lost 2,000btc because of 100x leverage. What will you do if you losing that huge amount of money?
Being a trader is not easy you need to be positive all the time dont be stress if you lose your trade. I'm here to this thread to observe what will you guide if you losing money like what happen to Chinese trader.

I searched for the most preferred leveraged ratio, google said that 100:1 ratio in leveraging is better than 50:2 but take a look at this. Many people cried of 100x leverage . Usually happens if there is an assumption that the price would hike, a week or a month before you have seek in leveraging your position. I don`t use margin tradings or leveraging because it is too risky. In fact, I am not still pro and rich to use some kind of that. I just believe upo my technical analysis and funds in trading.

From my practicy and general statistics, 20x is already risky leverage
6-12x is moderate
below 6 is low

darewaller

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Quote from: Nellayar on July 02, 2019, 09:35:54 AM

Quote from: dark08 on June 14, 2019, 09:38:26 AM

High leverage is deadly look what happen to Chinese crypto fund management firm founder that lost 2,000btc because of 100x leverage. What will you do if you losing that huge amount of money?
Being a trader is not easy you need to be positive all the time dont be stress if you lose your trade. I'm here to this thread to observe what will you guide if you losing money like what happen to Chinese trader.

I searched for the most preferred leveraged ratio, google said that 100:1 ratio in leveraging is better than 50:2 but take a look at this. Many people cried of 100x leverage . Usually happens if there is an assumption that the price would hike, a week or a month before you have seek in leveraging your position. I don`t use margin tradings or leveraging because it is too risky. In fact, I am not still pro and rich to use some kind of that. I just believe upo my technical analysis and funds in trading.

Looking at it from the jackpot part of it, it is very cool to leverage at 100x, if you are able to get the trade right leveraging at 100x, you are already made, but as cool as it is, it is the most dangerous spot to choose in leveraging, if any trader is to leverage at all, it will be best if such trader can leverage low.

I think greed is what usually make a lot of people leverage high, and I am not sure I have seen too many positive testimonies from people that have tried this,what you end of hearing from them is cry of regrets, they had wish they never leveraged that high, so I would not advise any trader to do more than its power, the most important thing is to make profit, isn’t it better to make little profit than not to make at all, and to the extent of even losing the capital completely out of risk.

Nellayar

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Quote from: dark08 on June 14, 2019, 09:38:26 AM

High leverage is deadly look what happen to Chinese crypto fund management firm founder that lost 2,000btc because of 100x leverage. What will you do if you losing that huge amount of money?
Being a trader is not easy you need to be positive all the time dont be stress if you lose your trade. I'm here to this thread to observe what will you guide if you losing money like what happen to Chinese trader.

I searched for the most preferred leveraged ratio, google said that 100:1 ratio in leveraging is better than 50:2 but take a look at this. Many people cried of 100x leverage . Usually happens if there is an assumption that the price would hike, a week or a month before you have seek in leveraging your position. I don`t use margin tradings or leveraging because it is too risky. In fact, I am not still pro and rich to use some kind of that. I just believe upo my technical analysis and funds in trading.

Mark_R

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Quote from: farwellbit on June 26, 2019, 06:08:13 AM

The best way to avoid losses in margin trading is stop doing margin trading if you don't know how it works. Margin trading is difficult so If you cannot do it then it's better you stay clear from it than trying to do what you can't do and losing your money. There is huge risk there, but some people, because they think that big money will come margin trading, so they always would like to take that risk and at the end it would be a loss. If you can't, just do the normal trading and also trade with an amount you can only afford to lose.

Stop and learn I guess

sana54210

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Quote from: farwellbit on June 26, 2019, 06:08:13 AM

The best way to avoid losses in margin trading is stop doing margin trading if you don't know how it works. Margin trading is difficult so If you cannot do it then it's better you stay clear from it than trying to do what you can't do and losing your money. There is huge risk there, but some people, because they think that big money will come margin trading, so they always would like to take that risk and at the end it would be a loss. If you can't, just do the normal trading and also trade with an amount you can only afford to lose.

Quite funny of you, and has funny as you may sound, you really made lots of sense with that, it is better to abstain from marginthan to believe one can manage the risk involved in margin trade, margintrade is really not an easy one, and I think it is greed that usually make people go for it, when they consider the chance of making so much money when it goes in favor of them, and they become so blind to the disaster it could bring if the market goes against them.

Margin trade really dealt with me in Forex trading and ever since I lost most of my money to margin trade, I swore never to use it again, because it is really a dangerous game to play in trade and it is indeed a game of luck and not strategy, no matter the strategy you have in trading, you have to rally pray to Good when applying margin to trade.

South Park

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Quote from: Mark_R on June 21, 2019, 12:10:32 PM

Quote from: NN52NN on June 21, 2019, 08:11:59 AM

In some situations losses are unavoidable. I think margin trading is for professional traders only. I, as an amateur, stay away from it.

I suppose losses are an integral part of any trading strategy

This is something that bothers me, many traders conduct themselves as if they do not make mistakes and as if every single of their predictions will always be right and that is a recipe for disaster, there is not a single trader alive that has made more than 100 trades and has not lost a few of them, so when they lose they are completely unprepared for it, I will be honest I do not see the necessity of margin trading since many books about trading advice that the most money that you should lose in a trade is 2% of your capital and margin trading can expose you to lose 100% of your capital in a single trade.

farwellbit

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The best way to avoid losses in margin trading is stop doing margin trading if you don't know how it works. Margin trading is difficult so If you cannot do it then it's better you stay clear from it than trying to do what you can't do and losing your money. There is huge risk there, but some people, because they think that big money will come margin trading, so they always would like to take that risk and at the end it would be a loss. If you can't, just do the normal trading and also trade with an amount you can only afford to lose.

Mark_R

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Quote from: jhonjhon on June 22, 2019, 10:16:47 AM

This is so sad, leverage is good because it may result to huge profits but 100x leverage is too much for me, I didn’t think someone can really do 100x leverage. Based on what I noticed, no one has ever done 100x leverage, 50:1 is the maximum that I know and it is very seldom to have traders go with 50x because it is very risky because if you don’t make the right decision then you will lose 50x as well. But this one is something, he is so brave to go with 100x but sad to say it didn’t pay off, it only cost his life. Therefore, if you want to take advantage of margin trading don’t go overboard and think it over in over because entering and be ready for the consequences.

Yes... But that's a sort of double-edged sword

Oceat

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Quote from: jhonjhon on June 22, 2019, 10:16:47 AM

This is so sad, leverage is good because it may result to huge profits but 100x leverage is too much for me, I didn’t think someone can really do 100x leverage. Based on what I noticed, no one has ever done 100x leverage, 50:1 is the maximum that I know and it is very seldom to have traders go with 50x because it is very risky because if you don’t make the right decision then you will lose 50x as well. But this one is something, he is so brave to go with 100x but sad to say it didn’t pay off, it only cost his life. Therefore, if you want to take advantage of margin trading don’t go overboard and think it over in over because entering and be ready for the consequences.

Greed is the main reason why traders lost during trading because they were trying to recover their losses by doubling the amount they trade. It's just like doing a martingale strategy which is not really a good strategy if you don't know what you were doing. And i'm sure that trader risking a 100x leverage know what he's been dealing with. It's just that someone didn't know what is risk management.

Rufsilf

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Quote from: jhonjhon on June 22, 2019, 10:16:47 AM

This is so sad, leverage is good because it may result to huge profits but 100x leverage is too much for me, I didn’t think someone can really do 100x leverage. Based on what I noticed, no one has ever done 100x leverage, 50:1 is the maximum that I know and it is very seldom to have traders go with 50x because it is very risky because if you don’t make the right decision then you will lose 50x as well. But this one is something, he is so brave to go with 100x but sad to say it didn’t pay off, it only cost his life. Therefore, if you want to take advantage of margin trading don’t go overboard and think it over in over because entering and be ready for the consequences.

Indeed, greed can really go too far, in his hope to get huge profits from trading it cost more than what money can’t afford which is his life. I guess as traders we have to think carefully on our actions and don’t let our emotions or greed take over, this incident should serve as an eye opener to all of us. Well it is true that margin trading can double your money but the higher the leverage the higher the risk so don’t jump right to it. Think before you make a decision and weigh all the possibilities to avoid major problems.

dat.ho12492

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Quote from: Rufsilf on June 21, 2019, 02:05:28 AM

The higher the leverage the higher the risk that is why it is better that you are well versed in trading when you enter leverage or margin trading. Margin is good because it can give you big profits if you trade correctly but if you failed and made a mistake then you could lose everything. You have to really keep an eye on the market to make sure your win and if you think the trend may go down then exit to avoid major losses

Even if we are proficient and have good skills in the market and in the trading field, margin trading is not within the scope that we should participate because as the numbers that a lot of people are seeing, margin trading is just the massacre of big whales, big fish kill small fish and bigger fish kill big fish. A lot of money and a good team will win this war, little money can still win but in the long run, all the money will still fall into the pockets of giant whales, the best way to avoid loss would be to avoid participating

jhonjhon

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This is so sad, leverage is good because it may result to huge profits but 100x leverage is too much for me, I didn’t think someone can really do 100x leverage. Based on what I noticed, no one has ever done 100x leverage, 50:1 is the maximum that I know and it is very seldom to have traders go with 50x because it is very risky because if you don’t make the right decision then you will lose 50x as well. But this one is something, he is so brave to go with 100x but sad to say it didn’t pay off, it only cost his life. Therefore, if you want to take advantage of margin trading don’t go overboard and think it over in over because entering and be ready for the consequences.

Mark_R

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Quote from: crwth on June 22, 2019, 06:11:31 AM

I have read that article where a Chinese person who had 2000 BTC portfolio, lost everything. I was shocked and at the same time weirded out with the happenings because a professional trader wouldn't let that happen. He should know the risk of margin trading. The x100 leverage wouldn't be friendly even in a small way. It's a matter of the fact that you should know how much you have and how much are you risking.

It's all about the mental state that you should have. I know that losses are pretty hard to take in but if you practiced it and understood what you are doing, you could recover all the losses that you have.

REMEMBER that it's both strong in gains as well as losses. It's like a double-edged sword; it is up to you on how you would wield it. Take cautionary steps. And you might save yourself the right trades and see your portfolio grow.

Indeed. These are the equal parts of trading and you should be able to be strong in both cases

crwth

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I have read that article where a Chinese person who had 2000 BTC portfolio, lost everything. I was shocked and at the same time weirded out with the happenings because a professional trader wouldn't let that happen. He should know the risk of margin trading. The x100 leverage wouldn't be friendly even in a small way. It's a matter of the fact that you should know how much you have and how much are you risking.

It's all about the mental state that you should have. I know that losses are pretty hard to take in but if you practiced it and understood what you are doing, you could recover all the losses that you have.

REMEMBER that it's both strong in gains as well as losses. It's like a double-edged sword; it is up to you on how you would wield it. Take cautionary steps. And you might save yourself the right trades and see your portfolio grow.

Mark_R

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Quote from: NN52NN on June 21, 2019, 08:11:59 AM

In some situations losses are unavoidable. I think margin trading is for professional traders only. I, as an amateur, stay away from it.

I suppose losses are an integral part of any trading strategy

NN52NN

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In some situations losses are unavoidable. I think margin trading is for professional traders only. I, as an amateur, stay away from it.

Mark_R

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Quote from: Samwise_Coingee on June 21, 2019, 07:38:49 AM

Quote from: Mark_R on June 21, 2019, 06:37:43 AM

Quote from: Rufsilf on June 21, 2019, 02:05:28 AM

The higher the leverage the higher the risk that is why it is better that you are well versed in trading when you enter leverage or margin trading. Margin is good because it can give you big profits if you trade correctly but if you failed and made a mistake then you could lose everything. You have to really keep an eye on the market to make sure your win and if you think the trend may go down then exit to avoid major losses

There is a theory on the ratio of the position size or leverage to profitability. It is not linear. The thing is to find optimal leverage/postion size.
You may have the same profits having x5 and x100 leverages, but in terms of risks these things are really different, obviously.

What is this theory?

You can find it here:
"Money Management Principles for Mechanical Traders" by Ralph Vince
Valuable book

Samwise_Coingee

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Quote from: Mark_R on June 21, 2019, 06:37:43 AM

Quote from: Rufsilf on June 21, 2019, 02:05:28 AM

The higher the leverage the higher the risk that is why it is better that you are well versed in trading when you enter leverage or margin trading. Margin is good because it can give you big profits if you trade correctly but if you failed and made a mistake then you could lose everything. You have to really keep an eye on the market to make sure your win and if you think the trend may go down then exit to avoid major losses

There is a theory on the ratio of the position size or leverage to profitability. It is not linear. The thing is to find optimal leverage/postion size.
You may have the same profits having x5 and x100 leverages, but in terms of risks these things are really different, obviously.

What is this theory?

Mark_R

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Activity: 434

Merit: 34

Quote from: Rufsilf on June 21, 2019, 02:05:28 AM

The higher the leverage the higher the risk that is why it is better that you are well versed in trading when you enter leverage or margin trading. Margin is good because it can give you big profits if you trade correctly but if you failed and made a mistake then you could lose everything. You have to really keep an eye on the market to make sure your win and if you think the trend may go down then exit to avoid major losses

There is a theory on the ratio of the position size or leverage to profitability. It is not linear. The thing is to find optimal leverage/postion size.
You may have the same profits having x5 and x100 leverages, but in terms of risks these things are really different, obviously.

Rufsilf

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Activity: 1778

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The higher the leverage the higher the risk that is why it is better that you are well versed in trading when you enter leverage or margin trading. Margin is good because it can give you big profits if you trade correctly but if you failed and made a mistake then you could lose everything. You have to really keep an eye on the market to make sure your win and if you think the trend may go down then exit to avoid major losses

Topic: Margin trading victims and how to avoid losses (Read 635 times)