Trading with leverage - page 3. | Bitcointalksearch.org

Mahanton

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Quote from: topbitcoin on November 13, 2021, 07:15:15 AM

Big profit although use small capital, but big risk because only need small movement and it will really affect on our trade. I think before do leverage trading or maybe future trading that still in trend for now, we should really good in spot trading, because leverage is more complicated and not simple as we buy and hold, we must set stop loss, or maybe do anything to avoid to be liquidated.

Big profits but really be very risky and if you dont know on what you are doing then it is just simply be considered are pure gambling yet you could blow up your account
in a short span of time specially with leverage or futures trading but there are people who do really love on dealing with this kind of trading other than spot.
Why? they dont like on seeing small profits that they could get on spot trading which i could say to be a very bad kind of behavior.
Trade on this one on your own risk and dont be shocked on how things to be that fast.

topbitcoin

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Vave.com - Crypto Casino

Big profit although use small capital, but big risk because only need small movement and it will really affect on our trade. I think before do leverage trading or maybe future trading that still in trend for now, we should really good in spot trading, because leverage is more complicated and not simple as we buy and hold, we must set stop loss, or maybe do anything to avoid to be liquidated.

Wind_FURY

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Quote from: tvplus006 on November 12, 2021, 06:25:43 AM

Quote from: Wind_FURY on November 08, 2021, 02:49:38 AM

...If those traders simply HODLed Bitcoin since 2020, how many of them would be in profit? 10. Cool

This is too simplistic a view of holding and trading.

Simplistic? But you can prove it for yourself, try HODLing Bitcoin vs. Trading then track your 10 year results. Plus statistically 90% of active “traders” lose their money to the top 10%. That’s a fact.

OR, I believe MANY of you from before 2017 have experience this. Recall all your trading losses in Bitcoin and compute how much you would be having now if you merely HODLed.

Quote

And in this case, it all depends on how experienced the trader who uses leverage is. If this knowledge is not enough to make money on margin trading, then this will undoubtedly lead to losses and in this case the best solution for him will be a hold.

Then we have the same opinion?

SquallLeonhart

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Quote from: lelahenderson on November 12, 2021, 05:09:15 AM

I agree with you that leverage trading is ideal for enhancing an account size with a small capital. But i don’t agree that it is good for beginners, it can get hard for them to identify the potentially good trades and the right time to exit a trade. Although as of now I’m using 5x leverage on turnkeyforex but I wouldn’t have done this when I just started out.
What I can recommend is trading smaller lots with leverage, so even if you lose a trade it won’t be all of your capital in 1, so splitting your money in multiple trades seems like the right thing to me.

The idea would be to become a veteran spot trader first, and then put a small amount into leverage trading. That way you could turn small amount into big amount if you are good at what you are doing and a little bit lucky as well, but it is definitely a must that you should be an expert at what you do.

Without that expertise, you would be just gambling and considering how all of your bet would be gone as soon as it goes to wrong direction, I would suggest that small amount is a must if you are starting out new. So, you could be a "newbie" but in leverage trading, even the most expert people start for the first time one day, and that means they are newbies in leverage, but you need to become amazing at everything else before you turn into leverage.

beerlover

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Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

Let’s bring to light the many unknown aspects of crypto trading, besides what is known - that you screw things up when you don’t understand technical analysis and blindly enter and exit trades.

I don't think there could be anything not covered by this community about crypto trading or leverage trading because in the past we had lots of similar discussions and on-which people had contributed into the core level of each details so I guess you cannot bring any merits of leverage trading because it is already proven as one of the biggest dangerous way of trading for or both beginners and experienced traders.

Still I read that leverage trading might be suitable for the traders who are all experts in technical analysis at the same time it is a fact that even professional traders are not consistent in profit making. By combining these two facts, you cannot win in leverage trading even being good at technical analysis.

lumierre

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The most convenient exchange to trade is Binance as for me. Trading with leverage is a dangerous thing and I know that only 1 from 10 traders earn and the rest 9 actually lose. You have to investigate this market for a long period of time, study technical indicators to be a successful trader. Trading with leverage is ok for me as I don't have to risk big money to get a big profit.

zaesvlas

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The most important thing is not to risk beyond your capabilities. It should be understood that the outcome of such activity may not be the most positive.

tvplus006

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Quote from: Wind_FURY on November 08, 2021, 02:49:38 AM

...If those traders simply HODLed Bitcoin since 2020, how many of them would be in profit? 10. Cool

This is too simplistic a view of holding and trading. And in this case, it all depends on how experienced the trader who uses leverage is. If this knowledge is not enough to make money on margin trading, then this will undoubtedly lead to losses and in this case the best solution for him will be a hold.

lelahenderson

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Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

Here are the pros I could sum up:

. First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
. Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
The biggest disadvantage obviously is the extreme volatility of the market which can magnify losses as much as it can increase profits through leverage.
How many of you here are using leverage to trade crypto, and how much, and through which broker? Let’s bring to light the many unknown aspects of crypto trading, besides what is known - that you screw things up when you don’t understand technical analysis and blindly enter and exit trades.

I agree with you that leverage trading is ideal for enhancing an account size with a small capital. But i don’t agree that it is good for beginners, it can get hard for them to identify the potentially good trades and the right time to exit a trade. Although as of now I’m using 5x leverage on turnkeyforex but I wouldn’t have done this when I just started out.
What I can recommend is trading smaller lots with leverage, so even if you lose a trade it won’t be all of your capital in 1, so splitting your money in multiple trades seems like the right thing to me.

abrahamtownsend

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Quote from: Peanutswar on October 31, 2021, 06:15:18 AM

Trading with leverage is just an option you can make a trade with low leverage or zero leverage but if you have a small amount of money only and you want to make a trade its not profitable at all, else you will put leverage so you can get a higher chance of profit. Always make a trade which you can only afford on it. Lossing a trade does not mean you lose a profit still at the end of the day number of earning on every trade is the one you gives a good outcome. So base in my experience safe leverage is with the range of 25-75x.

25X- 75X is extremely high for crypto trading.It gives me shrills. I won’t suggest it to anyone. Also, I don’t think there’s any broker who offers such a high leverage for crypto trading.

abrahamtownsend

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Quote from: lixer on October 29, 2021, 07:58:17 AM

Quote from: Wind_FURY on October 29, 2021, 07:42:19 AM

Quote from: abrahamtownsend on October 26, 2021, 10:56:39 PM

First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.

Beginners + leverage + limited = Margin Calls/Liquidations.

Plus it’s not the only option. You can find a job, save a portion of your salary in Bitcoin. I believe you would have a higher probability of long term success with that than gambing with leverage. Think where you will be 10 years from now if you keep gambling with leverage.

Yeah, OP is trying to misguide new traders because theoretically leverage markets might look like an advantage but when getting into market then high volatility might swallow all their capital in matter of one or two sessions. Basically, limited funds cannot be a constrain for considering about leverage market.

Leveraged market might suit the traders who are able to accurately predict the market directions in short term. Such traders already might have big capital and still go for availing leverage to maximize their profit levels when trading on multiple assets.

OP:
When you are having small capital then going for leverage with all 100% of your capital might lead to disasters on a small correction on your expected market direction. Only when you gain experiences then you may start think about leverage trading.

I agree and I’m not at all trying to misguide anyone. It’s true that newbies with small capitals are the ones who mostly use leverage to quickly grow their account. A small amount of leverage can be beneficial if you are following sound analysis to predict the price movements. However, if someone is just gambling around, I won’t suggest them the same.

abrahamtownsend

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Quote from: Zackgeno96 on October 27, 2021, 06:09:12 AM

Quote from: MIner1448 on October 27, 2021, 03:08:22 AM

Trading with leverage is a very dangerous thing for a beginner, especially for a gambler, because if you try it once, you can't pull everything off.
As a beginner, I was losing my deposits, trading with a leverage of x10, x20, but I realized that it was necessary to trade with a maximum of x5, and it would be hard to stop.

It's not recommended for newbies especially if they don't master the risk management. That's what will happen to any traders who don't know how to manage the risk and they just rely to luck and will ended up broke. I use high leverage even though I'm not a professional trader but I only use it if I'm really confident with my technical analysis.

That’s smart. Traders, most specifically the new traders need to understand that it’s not important to use leverage on every trade. Use it when you are very sure about a trade but it’s not good to exceed a certain limit even if you are very experienced.

Silberman

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Quote from: add1ct3dd on November 07, 2021, 12:52:29 PM

Trading with leverage isn’t bad, the good thing about it is that it magnifies your profit. But then it also has its bad side which is magnifying your losses as well. I wouldn’t really say that it is that bad, as long as you know what you are doing and you are very sure that the decision you are about to make is going to work out and you make profit from it, if not then you are going to end up with a huge loss.

Anyone who is trading with leverage can use a little amount of money to make about 100% of what they’re trading with, but without leverage you’re making less, so This is why a lot of people like to trade with leverage. But at the same time they are taking a huge risk.

The thing is if only those that were expert traders used leverage then that will be OK; but the majority that are using leverage are newbie traders which were attracted by promises of huge profits in a relatively short amount of time, they do not see that even if they can produce short term profits with leverage sooner or later they will make a mistake and that is when no only they will lose the money they got with their leveraged traders but they will lose their seed capital as well.

Wind_FURY

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Quote from: add1ct3dd on November 07, 2021, 12:52:29 PM

Trading with leverage isn’t bad, the good thing about it is that it magnifies your profit. But then it also has its bad side which is magnifying your losses as well. I wouldn’t really say that it is that bad, as long as you know what you are doing and you are very sure that the decision you are about to make is going to work out and you make profit from it, if not then you are going to end up with a huge loss.

Anyone who is trading with leverage can use a little amount of money to make about 100% of what they’re trading with, but without leverage you’re making less, so This is why a lot of people like to trade with leverage. But at the same time they are taking a huge risk.

If there were 10 traders who used 10x leverage, how many of them, do you believe, will get a margin call sooner or later? More than 5, if you ask me.

If those traders simply HODLed Bitcoin since 2020, how many of them would be in profit? 10. Cool

sana54210

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Quote from: add1ct3dd on November 07, 2021, 12:52:29 PM

Trading with leverage isn’t bad, the good thing about it is that it magnifies your profit. But then it also has its bad side which is magnifying your losses as well. I wouldn’t really say that it is that bad, as long as you know what you are doing and you are very sure that the decision you are about to make is going to work out and you make profit from it, if not then you are going to end up with a huge loss.

Anyone who is trading with leverage can use a little amount of money to make about 100% of what they’re trading with, but without leverage you’re making less, so This is why a lot of people like to trade with leverage. But at the same time they are taking a huge risk.

I have to say that good side doesn't worth the bad side for me. If you are a veteran of it and can make a lot of money with it then by all means go ahead and do it, however that doesn't mean that you should do it, if you are good at leverage then you will most likely be good at spot trading as well. Knowing the direction is the most important part isn't it? If you know the direction then you could do spot trading and yes you will earn a lot less that way but you will lose a lot less as well and would guarantee that you would be holding at least some money.

I tested it before and I dislike it, losing all of your money if it goes on certain direction never really work well with me. I like to lose a bit if I am wrong and earn a bit if I am right, that way I would be doing a lot better. In the end it really works as perfectly as people hope it would be whereas leverage just takes all of your money away if you are wrong.

add1ct3dd

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Trading with leverage isn’t bad, the good thing about it is that it magnifies your profit. But then it also has its bad side which is magnifying your losses as well. I wouldn’t really say that it is that bad, as long as you know what you are doing and you are very sure that the decision you are about to make is going to work out and you make profit from it, if not then you are going to end up with a huge loss.

Anyone who is trading with leverage can use a little amount of money to make about 100% of what they’re trading with, but without leverage you’re making less, so This is why a lot of people like to trade with leverage. But at the same time they are taking a huge risk.

pgbit

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Trading using leverage is always too risky because there are too many whales playing games these days so people, especially newbies, lose money so I never recommend leverage trading, instead I recommend spot trading.

OnlineCasinoBoard

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Trading became a essential one now a days.People from various background investing their money in the cryptocurrency now.It was a positive one in the bitcoin flow now.But the mining of bitcoin was not taking place due to less profit in bitcoin mining.So the supply is limited.We can expected huge rise in bitcoin in upcoming year.

LUCKMCFLY

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Quote from: sumant on November 02, 2021, 06:20:01 AM

When we talk about leverage trading I personally feel this is good way to earn daily or weekly money I don't understand why many traders fail into this leverage system. I trade on octafx with high lot, I loss my money but when I come to lowest lot trade not has liquidated but you have to wait. So there is nothing way to shortcut. In spot trading or leverage trading you have to wait means patience will going to test you always.

The truth is, operating with leverage for me is something of extreme care and with an exaggerated risk, there are people who have a lot of experience with leveraged trading. I have seen some traders who use leverage especially when the market enters "Short" because a fall is easier than an increase in leverage, in addition to that in some exchanges when the person leverages in "Long" they have to pay additional fees, because it is more expensive.

Silberman

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Quote from: Oshosondy on November 05, 2021, 01:59:56 AM

Quote from: Silberman on November 03, 2021, 06:25:10 PM

those that have the highest amount of money try to reduce their risks as much as possible to protect their capital, so it is interesting that the ones that have many times less capital choose the opposite strategy and they are reckless with their capital when it is so low

Exactly the case, the people that have enough money to trade and are patient (because not all with enough money are patient, that is why some lose thousands of dollars on just few days), they will not even leverage at all, this helps them in many cases, the market can go against there direction to the extent they would have been losing much but later the market will correct itself to the extent such traders will make profit at the end, but if they had leverage the position opened, then the market would have liquidated. Some people will also prefer to wait for market to decrease a little, then enter market without leverage, this also helps because no matter how bitcoin drops, it will still increase back and surpass the price of the position opened.

It is understandable why they do something like that but at the same time they should know that something like this is never going to work, there is a reason those that have a lot of money decide to not use leverage, and if they do, they use a very low leverage with a very strict stop loss, but instead what we see is people using 100x of leverage and then they complain about losing their money, but what else did they expected to happen? When you take such huge risks the risk of bankruptcy is 100%, and even if someone can obtain some profits doing that sooner or later the risk will catch up to them.

Topic: Trading with leverage - page 3. (Read 715 times)