Topic: Trading with high volume + low leverage vs. small volume + high leverage? - page 2. (Read 248 times)

I think it is obvious that everyone has their own preference and every trader will make their own system that works. I do not think that there is one right answer for this, I may do a high volume low average and make a profit while you will do small volume but high leverage and make a profit, both of those could happen, also maybe I will try high volume and low leverage but fail while you will profit, or I will do small volume and high leverage and fail and you will profit?

All of these options are available and possible which is why I think it is quite important that we do not end up doing anything that would be perfect for someone else. Whatever you do, whatever you pick, it will be best for you and you should do that, you should not focus on something that would is better for other people, maybe it is good for them but it is not good for you? You should be careful.

A trader need to know what leverage is before even making an order. Leverage is you having additional money, liquidity given to you by the stock broker platform, or forum that you trading with. Leverage is also like margin trading.

So the risk about leverage is when you don't have adequate self control and controlled emotion and you keep extending your risk level. Leverage trading is sweet when you are on profit because the broker don't have issues with the borrowed liquidity to you but the negative effect of it if you are in a losing trade , the brokers take away there borrowed liquidity to you and you see yourself crashing faster.

Some traders don't understand it or they understand but have decided to take higher risk to use martingale kind of trading. They can profit faster or lose faster. It depends on the direction of the market. Leverage is good and it also has its negative.

High leverage trading are highly risky so you may not execute your trades and take the decisions at the right time due to that added pressure. Since you already successful with spot trading then why not continuing it instead of going for margin trading?

In my opinion, the volume of your funds will define on what kind of Trading you're gonna fit into. For example, you have $3,000, it's good in futures using "cross" margin and lower leverage, and if your funds is small, it's better on "isolated" margin and high leverage.

But if you have like $7,000-$8,000 and up, I'll recommend that use it in spot trading, no leverage, since it is safer than the two that I've mentioned, especially when you're just a newbie in Trading. But if you have a lot of funds, using high leverage (high risk reward) is not bad at all.

In my own short LOSING experience in day-trading, it depends on the volatility of the coin. Bigger positions for lower volatile coins because the risk is less, and smaller positions for higher volatile coins because risk is more. I believe great traders do not have a fixed size to fit all.

I am just only into spot trading in crypto space but I have availed higher leverage on other trading. When your technical are weak and you are not sure about long term strong trend then you may go for higher leverage but look for short target to book and exit. This way even you are covering only a short term trend, you could make considerably decent profits with high leverage.

When you are good at technical and you have clear stop-loss levels then you can calculate your positions as per your leverage in way it will be not triggering the stop-loss on negative market.

Just all I know that the more you are willing to take your big assets to be trade, is the more chances that the risk is high for sure.
I'm not quite familiar with the leverage, just what I did only is day trading, scalping but very seldom. But limiting you losses is a very good tools
to control your amount of loss assets. but according to what I read to most of the members here in the forum, according to them leveraging is not really effective.

Trading high leverages indeed give you out higher profits, but when have traders ever observed trades with profits? Most would actually just minimize their losses instead of maximizing profits since the latter is insanely difficult and risky to do, especially in a volatile market such as the crypto market. Always play around on a set level, it's okay if it limits you since that means it also limits your losses. You can try out plans that maximize your profits when your total profit has grown pretty well, much so that you can afford that much of a loss.

What you want to first look at is how you will manage your risk. As you are thinking about how you are going to profit. Also think much more about how you are going to lose.
I would favor high volume + low leverage to small volume + high leverage. Of course, I will still be using stop losses on my high volume + low leverage trades to even keep the risk of losing so much of my asset in case things go in the opposite direction at bay.

I have traded high leverages before. That's X50, X40. Trust me out of over 10 trades. I only won once.

This is the right approach, people are always thinking about all the profit that they are going to get when they become traders dreaming of how they are going to spend all of that money they will earn, and while there is nothing wrong with dreaming with your eyes open we need to keep them open to the truth, most traders lose money, most traders lose all of their money in just a few years so if you're going to choose that path then you need at first to try to reduce your losses.

This means to avoid using leverage and to avoid markets with very small volumes, yes I know that this is going in theory limit your profits but you were not going to get profits in those markets anyway so you're not really losing anything by doing this.

Sorry guys, I'm a very pragmatic guy, leave theory apart, I am aware of all your advice so I was asking what you are doing just for sharing experience.
I started trading this year after about 2weeks of studying the crypto world, I managed to double my investment in about 50days with spot trading only, a moment when I was hit hard by some pumped alts so I moved to learn futures trading as I was on losing path anyway so I learned a lot from my failed moves, now I am on the moment when I seek experience sharing stories hence my thread.

All options have their own benefits and risks. However, it was very risky for me to trade using high leverage. Take leverage if you are able to manage it, if you can afford it with high leverage, it will reduce the risk that will occur. Although the benefits obtained by using high leverage will be very large, but think about it first, what the risk of loss is too. Don't be fixated on profit first, because it will blind you. Trade according to the capabilities you have.

In high leverage, your calculation error will have a big impact on losses that can be far from your expectations. Every leveraged trade is also accompanied by a Margin Call (MC) feature. MC is a certain margin threshold that must be available in a trader's balance. If the trader's balance falls below this threshold, the broker can close part or all of the trading positions in the trader's portfolio. A trading position that is closed forcibly can be a profit or a loss. This of course is very detrimental to traders. One of the biggest mistakes is over trading, the right decision-making needs to be done to avoid it, because the key to successful trading lies in its management. Both money and risk management. To avoid being hit by MC, use a little model first, about 3-5% to open a position and don't forget the most important thing is to use a stop loss in all your positions.

The solutions to the various high leverage risks are controllable. However, it takes sufficient knowledge and experience to control high leverage. If you are interested in using a higher leverage than usual, you should first test it using a demo account before applying it to your main (real) account.

The result of trading with high volume and low leverage or trading with low volume and high leverage is more or less the same. They are both very risky and may cause you to lose all your money. You should know that the higher the leverage the more the amount of money that you can lose in a single trade.
You probably have forgotten and should have include it in your question how that you should trade with a moderate amount of money (preferably one you can afford to lose) and using a moderate sized leverage.

The higher the leverage you use, the closer you are to losing your money. In addition, the less leverage you use, the better you sleep at night. Using a large volume of capital in a single trade is also a violation of the trading strategy and leads to a loss of money.

Hodling gives profits IF you do as follows

• Choose a right coin to invest (hodl). The best is bitcoin
• Hodling means Spot trading if you store your bitcoin on exchanges

Spot trading means no leverage. Your statement is not accurate as you wrote low leverage for spot trading.

Trading can give your profit or loss but most of traders end with losses. Serious losses will find them with Leverage/ Margin tradings.

Don't join the so-so gambling trading: Leverage/ Margin trading IF

• You don't have 4 years of experience in crypto market and in crypto trading.
• You don't have good rate of successful trades with Spot trading
• Leverage: x2 or x3 and even with low leverages, please afford your loss with margin call and liquidations

Don’t count your chickens before they hatch, OP. Instead of thinking about how much you could profit with a strategy, think about how you can lose in each sizing. Plus get your answers by back-testing your strategy before implementing them. Don’t trust people in the forum, verify.

For me, the more your leverage is high, the more risky, the high leverage, the price liquidation is closer to your entry price so your trade position may liquidate in just a short period of time or in an abrupt pump/dump.

If you go ask some traders or watch some videos or read some trading books/articles, for sure you can't see the author or professional traders advising high leverage for every trade.

Hi,

From your experience in futures trading, what's best considering the risk/profits: trading with large volume from your capital but with low leverage (even doing spot trading) or trading small volume but combined with high leverage?

Can you also give concrete examples of the used amount + leverage per trade/position?

thanks