Thankfully not a lot of people who understands how any of this works ends up losing money, it is all the newbies who should have stayed away to begin with, that ends up with a problem, and those should stay away anyway, and they still end up with something that causes them to just focus on something else.
I understand that newbies want to make money as well, but you can't just make money because you want to, and taking a huge risk like this doesn't guarantee you to make money neither. If you insist on this, and do it as a newbie, and then end up losing money, that's really not something I would be saying anything about, because you "sort of" deserved to lose that money, because you did something you shouldn't have done to begin with.
Topic: Trading Leverage (Read 926 times)
I actually never thought that trading with leverage was good for us, except for professional traders who are already experts and are used to leverage. Trading with leverage is something that carries high risk. Yes, indeed, it can really make us get extraordinary profits. But on the contrary, it can also make us lose our money quickly. especially if we play with high leverage, and without sufficient knowledge. So, if you are not ready, then it is better not to leverage, or just use small leverage with good funds management.
well thats kinda the essence of leverage honestly usually I think the exchange will always give warning of the side effect of using the leverage feature it is definitely described as a double edged sword where it grant opportunity to people at the cost of their capital.most of the future trader using leverage out there I think are people that are experienced already, if they are just some random newbies that are leveraging their asset it might means they are greedy and will probably just lost the money along the way.
if you are experienced in a nutshell feel free to use the leverage feature, but if you think your newbie, you know whats best for you maybe the spot trading is already good enough a place to start.
i think its as simple as that.
its just the right feature provided by exchange to give people the chance to do much more than their capital actually allowed to do and I think there's no problem if an exchange having it as a feature.
Unfortunately, a lot of people lose instead of winning and that's the issue, too many people are taking way too much risk with this and we should consider why there are so many people who lose. I think one of the main reasons is that people lose because they are not aware of the risks involved with it and that is why they are not making that money back, I hope people go into leverage only after they know what they are doing.
I know you gave an example only but in this volatile market, stop loss with 1 - 2 % will be terrible. I know stop loss, stop limit orders are very helpful to minimize loss and avoid serious loss in a market crash but 1 - 2 % should not be used as a limit to exit the market with either Stop loss or Stop limit order.
Yes, indeed, I have given these figures as an example. Nevertheless, these figures are quite real if you open a long position from support and, accordingly, short from resistance. In this case, you will have a very small loss if the price moves in the opposite direction to your expectations.
However, we should probably consider the situation to be profitable if we know if this was the starting point and not really get it any where else, there are way too many problems because people end up with newbies who end up making a lot of mistake. This should be the key thing that you should expound and consider writing a whole topic about it so that newbies would have something we can refer to.
The safety of using leverage is directly related to risk management, compliance with which depends only on you. And if you do not adhere to the risk management strategy, then your entire trading will be comparable to a casino in which you will eventually lose your deposit.
Because of this, it is important for a trader to be able to understand risk management and how to take mitigation steps to reduce the risk of using leverage in their trading, for example using stop losses, choosing leverage that is not too high, and in-depth analysis of their trading to reducing the potential for dangerous positions for traders. Because leverage was developed to help traders, and if they understand the risks of using it and can make the best use of it for their trading, it should be a good tool for them in the world of trading.
In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal.
I disagree!!!Leverage only gets bad when the trader has no working strategy and not using risk management to protect their capital!!
Truth be told, we have some may traders out there trying to get rich quick and what tend to happen is gambling and not trading..if we can work on getting a disciplined approach then leveraged trading will become a good concept for everyone.
It's because we can not control the market and force the market moves to a direction that will help our trading positions end with profit so let's forget about it.
Another thing we can control is our emotion, greed, fear, panic that will all affect our trading action. However, unfortunately, when we use leverage, we will become more easily lose control of our emotion, greed, fear, panic, then will lose control of our trading action.
Bad control on our position will cause loss, hence if we are unsure that we can control these emotional things, we need to have prevention, don't use leverages.
Exchanges make money as the leverage increases. The exchanges do not care if you lose or not, what the exchanges care about is the profit they want to make.
You are right about this!But one way or another fees will have to be paid, if its not slippage that turns out to be high, expect spreads to be over the roof otherwise besides what the exchange adds as fees leverage increases our buying power which is a win-win for both exchange and traders as we can make more money from a small capital injection !!
In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal.
I disagree!!!Leverage only gets bad when the trader has no working strategy and not using risk management to protect their capital!!
Truth be told, we have some may traders out there trying to get rich quick and what tend to happen is gambling and not trading..if we can work on getting a disciplined approach then leveraged trading will become a good concept for everyone.
In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal. It messes things up for both the traders and the market. So my question is why do exchanges still offer them. They keep pushing it to traders like favourite snack?
When running up a business, then of course you would really be offering something that brings out advantage for you as a business owner. 
...In trading, you can not make right decisions to win all times so if you have bad trading capital management, like always use 100% of your trading capital to trade with one position. Some day, with over leverage and a bad day, bad position, you will get an excessive loss. This, if happens, will take away majority of your trading capital...
Using leverage allows you to open more orders with different trading pairs and thereby reduce the risk. The incorrect use of leverage is that a trader opens an order for one trading pair for his entire deposit and eventually loses it.
I'd love to learn leveraging for me to understand further and have full knowledge about it, lacking of exact information is my biggest fear to deal with from it. Indeed, losing deposit is really similar with gambling at casino which is really I don't want to happen with my earned money online.
Most of my crypto enthusiast friends enters trading out of the blue, eventually they'll lose their funds due to overconfidence. That's why I'm really careful taking risk without proper understanding.
Before you move on to margin trading, you must learn how to trade on the spot market so that this trade brings you profit. And there, in the spot market, you will have to learn how to adhere to the risk management strategy. And only after that you can try yourself in margin trading with a minimum leverage of x2.Most of my crypto enthusiast friends enters trading out of the blue, eventually they'll lose their funds due to overconfidence. That's why I'm really careful taking risk without proper understanding.
This is for us to get familiarize on some things and then the rest which are completely new to us can only or still be learned and practiced. There must also be demo trading there in margin just like in spot. We need to test our skills here first before going on the real deal.
Excess leverage in trading can amplify both potential profits and potential losses. But there's no need to fear leverage once you learn how to manage it. The only time leverage should not be used is if you take a hands-off approach to your business. Otherwise leverage cannot be used successfully and profitably through proper management.
The risk for your capital loss is from here, excessive leverages and excessive loss.In trading, you can not make right decisions to win all times so if you have bad trading capital management, like always use 100% of your trading capital to trade with one position. Some day, with over leverage and a bad day, bad position, you will get an excessive loss. This, if happens, will take away majority of your trading capital.
It can be the end for your trading career if you repeat it a few times and lose like 99% of your initial capital.
In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal. It messes things up for both the traders and the market. So my question is why do exchanges still offer them. They keep pushing it to traders like favourite snack?
For now I had the options to do dual investment within one day at Kucoin, no matter what the result is the profit remains stable.
You're right, leverage isn't a good idea since there's a big risk involve. So to make things more productive let's rely at exchange sites progressive recommendations.
However, minimal portions of risk can be experienced but not as worst trading leveraging.
Mistakes are inevitable and this is something that you should really be that normal on this space and its true that no matter how experienced or veteran you are, you would really be still have the chance on finding yourself that getting liquidated or being that losing money with your trading positions but the possibilities of having those recovery could really be entirely be different or noticeable in comparing into those people
who are just that new into this field. Trading leverage is something that you should really be needing up to consider or to look out because its never been advisable that you would really be setting those bars high
on which we know that this is something that would really be that so risky on doing so or not really that recommended into those people who arent really that good in spot trades.
As much as possible i wont really be touching up this area.
who are just that new into this field. Trading leverage is something that you should really be needing up to consider or to look out because its never been advisable that you would really be setting those bars high
on which we know that this is something that would really be that so risky on doing so or not really that recommended into those people who arent really that good in spot trades.
As much as possible i wont really be touching up this area.
The possibility of recovery after the loss of a deposit, especially a deposit with leverage, depends not only on experience in trading, but also on the psychological attitude. If a trader is experienced, but his “portfolio” contains only successful transactions, then he will perceive failure critically, this can undermine his self-confidence and unsettle him. If a person has adjusted himself that losses are the same part of the trade as winning, if he adequately treats the possibility of his own mistakes, then he will draw conclusions from such situations faster and better. And this will not demotivate him to engage in trading in the future.
The safety of using leverage is directly related to risk management, compliance with which depends only on you. And if you do not adhere to the risk management strategy, then your entire trading will be comparable to a casino in which you will eventually lose your deposit.
I'd love to learn leveraging for me to understand further and have full knowledge about it, lacking of exact information is my biggest fear to deal with from it. Indeed, losing deposit is really similar with gambling at casino which is really I don't want to happen with my earned money online.
Most of my crypto enthusiast friends enters trading out of the blue, eventually they'll lose their funds due to overconfidence. That's why I'm really careful taking risk without proper understanding.
Before you move on to margin trading, you must learn how to trade on the spot market so that this trade brings you profit. And there, in the spot market, you will have to learn how to adhere to the risk management strategy. And only after that you can try yourself in margin trading with a minimum leverage of x2.
I know you gave an example only but in this volatile market, stop loss with 1 - 2 % will be terrible. I know stop loss, stop limit orders are very helpful to minimize loss and avoid serious loss in a market crash but 1 - 2 % should not be used as a limit to exit the market with either Stop loss or Stop limit order.
indeed 1 - 2% is small amount, it will at the end of the day only causes the trader to lose their money, market volatility is a thing and the market volatility tolerance should be around 10%-20% instead of just 1% its like basically you just open your position and then it get closed almost immediately, the winner here will be the exchange that gonna get all the fee.though is it necessary using stop loss if we can limit the money we put at stake? like basically we just use 10% for leverage trading, we at worst just gonna lose that 10% but it won't ever got the position closed because the preventive measure already done before hand.
I find that to be more ideal in my opinion, since there has been many cases where market just gonna have flash dump about 20% then climbs up again, such event I think is created artificially by whales to liquidate whoever leveraging and have cut loss measure.
that means we just getting played by the whales.
...You're right, leverage isn't a good idea since there's a big risk involve. So to make things more productive let's rely at exchange sites progressive recommendations. ..
The safety of using leverage is directly related to risk management, compliance with which depends only on you. And if you do not adhere to the risk management strategy, then your entire trading will be comparable to a casino in which you will eventually lose your deposit.
I'd love to learn leveraging for me to understand further and have full knowledge about it, lacking of exact information is my biggest fear to deal with from it. Indeed, losing deposit is really similar with gambling at casino which is really I don't want to happen with my earned money online.
Most of my crypto enthusiast friends enters trading out of the blue, eventually they'll lose their funds due to overconfidence. That's why I'm really careful taking risk without proper understanding.
...You're right, leverage isn't a good idea since there's a big risk involve. So to make things more productive let's rely at exchange sites progressive recommendations. ..
The safety of using leverage is directly related to risk management, compliance with which depends only on you. And if you do not adhere to the risk management strategy, then your entire trading will be comparable to a casino in which you will eventually lose your deposit.
Leverage will fall into gambling if you don’t know actually how to trade using leverage, but if you are an expert in trading using leverage, then one should not worry about it. In fact, it will even increase your potential profits and achieve faster your goal in trading, but for some newbies who are still starting to trade, using leverage should always be discouraged as the risk to lose is high and it can instantly vanish all your funds in just a very short time.
The use of leverage in trades always falls into the realm of gambling, as the risk is exorbitantly higher than with trades without leverage. You won't find any professional traders who use (high) leverage, if only in livestream sessions to generate clicks, as the numbers simply move much faster and people stay on the streaming channel for longer. On the other hand, live trading has little to do with professional trading and should rather be seen as entertainment, as the factor of highly concentrated decision-making on how to react in a trade is eliminated.
Leverage will fall into gambling if you don’t know actually how to trade using leverage, but if you are an expert in trading using leverage, then one should not worry about it. In fact, it will even increase your potential profits and achieve faster your goal in trading, but for some newbies who are still starting to trade, using leverage should always be discouraged as the risk to lose is high and it can instantly vanish all your funds in just a very short time.
In my opinion, it is too presumptuous to call someone an expert in trading. Trading is not some objective and constant activity, which you can master step by step. Even if someone has great experience and has made a lot of success deals, doesn't mean he wouldn't make a mistake some day. Taking leverage is always a risk, no matter how confident you are about yourself. However, leverage trading is more "calculable", if I may say so, then gambling. Because in gambling there is little data you can stand on to make a bet, while in leverage trading you can use market instruments to make your order more probable to happen the way you think.
who are just that new into this field. Trading leverage is something that you should really be needing up to consider or to look out because its never been advisable that you would really be setting those bars high
on which we know that this is something that would really be that so risky on doing so or not really that recommended into those people who arent really that good in spot trades.
As much as possible i wont really be touching up this area.
Leverage will fall into gambling if you don’t know actually how to trade using leverage, but if you are an expert in trading using leverage, then one should not worry about it. In fact, it will even increase your potential profits and achieve faster your goal in trading, but for some newbies who are still starting to trade, using leverage should always be discouraged as the risk to lose is high and it can instantly vanish all your funds in just a very short time.
In my opinion, it is too presumptuous to call someone an expert in trading. Trading is not some objective and constant activity, which you can master step by step. Even if someone has great experience and has made a lot of success deals, doesn't mean he wouldn't make a mistake some day. Taking leverage is always a risk, no matter how confident you are about yourself. However, leverage trading is more "calculable", if I may say so, then gambling. Because in gambling there is little data you can stand on to make a bet, while in leverage trading you can use market instruments to make your order more probable to happen the way you think.
In life, leverage is good as it helps to help us accomplish a goal faster. But in trading, leverage in trading is clearly a bad deal. It messes things up for both the traders and the market. So my question is why do exchanges still offer them. They keep pushing it to traders like favourite snack?
For now I had the options to do dual investment within one day at Kucoin, no matter what the result is the profit remains stable.
You're right, leverage isn't a good idea since there's a big risk involve. So to make things more productive let's rely at exchange sites progressive recommendations.
However, minimal portions of risk can be experienced but not as worst trading leveraging.
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