Please don't liquidated yourself - page 2.

bettercrypto

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Quote from: Barikui1 on February 13, 2024, 01:28:21 PM

All trader should take note that you can't get liquidated if you use your leverage wisely, almost 90% or more of traders that got liquidated is as a result of high leverage, ok lets take btc as an example now, if you enter a long position from $45000 with a 3x leverage, Bitcoin would have to fall down to $17000 or $16000 for you to get liquidated, so as long as you are patience enough in the market while using lower leverage, you stand a chance of making good money out of the market, so please use your leverage wisely to overcome the troubles of the market.

This example that you give in your post is almost close to reality, which means that it is possible if you agree with what you are saying, but I don't leverage that because I know that the risk level is very high.

So if anyone is going to make or use that leverage, it should only be at x2, so that it is at least safe and the risk you will face there is low. Because for me, when it's at x3 and above, it's almost closed to losing; that's what I see.

Gormicsta

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Quote from: Zaguru12 on February 13, 2024, 01:52:03 PM

What you said is actually not far from the truth, high leverage is high risk high reward, but many only look at the reward position forgetting about the risk involved. Your example though isn’t clear but will tell you that risk management is the one thing some traders lack that makes them to get liquidated. Make sure your position size is large enough to cover for the trade. Many people that get liquidated hardly set stop losses and some that set do not look at the price they will lose when the stop lost should hit.

What you provided in the post about bitcoin is like a swing trading which I wouldn’t advise a small trader to go into. Better still calculate your risk to reward and then divide the percentage with how much you can afford to lose and set your stop lose with that amount. Do not just go and set stop Loss like that you can get liquidated even before it hits. Divide your account position in such a way that even if you hit 10 stop loss you wouldn’t get liquidated or better still stick to isolate margin if you can control that

You are completely correct, 💪. Risk management is the trading industry's superhero. It is not a one-size-fits-all method; each trader's approach differs depending on their knowledge, risk tolerance, and their financial goals. The secret is to establish your risk level and strategy size, then set your stop loss and leverage accordingly. Don't forget about diversification—spreading your money across many different investments and methods of trading can help minimize risk. Swing trading with Bitcoin may be too risky for some traders, but if you're knowledgeable about trading technical analysis and have a sound risk management system in place, you can try it.

Faisal2202

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Quote from: Barikui1 on February 13, 2024, 01:28:21 PM

All trader should take note that you can't get liquidated if you use your leverage wisely, almost 90% or more of traders that got liquidated is as a result of high leverage, ok lets take btc as an example now, if you enter a long position from $45000 with a 3x leverage, Bitcoin would have to fall down to $17000 or $16000 for you to get liquidated, so as long as you are patience enough in the market while using lower leverage, you stand a chance of making good money out of the market, so please use your leverage wisely to overcome the troubles of the market.

I don't do leverage trading now but I don't think that's how lower your liquidation price became when you chose 3x leverage, I am not trying to correct you instead a little confuse because I traded in the future a long time ago and now the numbers are little blurry. But hey let's consider the liquidation price for the sake of the context of your topic.

And on this, I can't agree more with you, because when I used to do future trading, I did know at the start that I should trade with lower leverage, but at lower leverage, you obviously make a lesser profit, so when you start to make some profit at lower leverage you start to think that now is the time to increase the leverage for like up to 10x. And that's where we make mistakes.

I also make the same mistake, I thought that I can judge the market now, and I know if it will move up or down so I should take entry, now is the best time but why should I not try 10x leverage instead of 2x or 3x. And boom here goes the whole future portfolio.

Zaguru12

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What you said is actually not far from the truth, high leverage is high risk high reward, but many only look at the reward position forgetting about the risk involved. Your example though isn’t clear but will tell you that risk management is the one thing some traders lack that makes them to get liquidated. Make sure your position size is large enough to cover for the trade. Many people that get liquidated hardly set stop losses and some that set do not look at the price they will lose when the stop lost should hit.

What you provided in the post about bitcoin is like a swing trading which I wouldn’t advise a small trader to go into. Better still calculate your risk to reward and then divide the percentage with how much you can afford to lose and set your stop lose with that amount. Do not just go and set stop Loss like that you can get liquidated even before it hits. Divide your account position in such a way that even if you hit 10 stop loss you wouldn’t get liquidated or better still stick to isolate margin if you can control that

Barikui1

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All trader should take note that you can't get liquidated if you use your leverage wisely, almost 90% or more of traders that got liquidated is as a result of high leverage, ok lets take btc as an example now, if you enter a long position from $45000 with a 3x leverage, Bitcoin would have to fall down to $17000 or $16000 for you to get liquidated, so as long as you are patience enough in the market while using lower leverage, you stand a chance of making good money out of the market, so please use your leverage wisely to overcome the troubles of the market.

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