Topic: Trading with leverage - page 4. (Read 715 times)

There are many plebs like us who believe “they can assess risk” correctly, but more than 90% of plebs end having their accounts liquidated. Because if truly they knew how to assess risk, they wouldn’t use leverage with little capital, trading an already volatile asset.

The most important thing is to correctly assess the risks. It should be understood that for a trader this is a really important question, on which the result of the work can depend quite strongly.

Leverage is the place that causes the most catastrophic accidents in trading, many traders love to convince themselves with their professionalism and good prediction to adapt quickly to the leverage but the answer is that accidents still happen randomly, of course, with professional ability, the consequences do not lead to death but at least, one accident is enough to inculcate in the memory of many professionals about leverage trading method. Leverage trading is surgery with a low success rate and full of unpredictability, traders are expert doctors but complications that increase the failure rate are very common in this process

These are definitely the misguiding statements. If you set tight stoploss means, 9 out of 10 trades you will lose your capital even you set your targets tightly. A tight stoploss is not a strategy but it will eat all your capital sooner or later because a strategy of many small losses is no way different from an usual strategy which gets you equal probability of winning and losing. So, all the dangers of leverage trading is not getting minimized just because you set your stoploss too closer but it may multiply your risks in multifold.

Yes if you have better prediction and confidence ,you can trade with leverage .Its always a death pool to trade on leverage if anything happen unfortunately it can wash your portfolio .We all know that crypto is a high volatile market so it is always risky to trade with leverage if you are not professional on trading .On the other hand if you have enough experience on crypto market you can earn a lot from here as well .So that's why i never suggest new trader to trade with leverage .

OR accept the fact that like 90% of the market participants who “trade” actively are losers, and mere gamblers. Then once accepted, start saving Bitcoin and HODL. Small capital will never make you rich enough in a single bull cycle. It will take YEARS of hard work, and saving.

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.

From my own understanding, leverage trading is another form of gambling, not trading, and like you said understanding the danger/complication involved is the best and the first thing to know cause most people that participated in leverage were blind by the end profit.

You are right. No one wants to understand that leverage trading is not for everyone. Because if a trader cannot predict the future movement of the market, then that trader will not be able to stay in the market by leverage trading in any way. Leverage trading is only for expert traders, who know proper money management and can make a guess about the next movement of the market by analyzing the market. You will find numerous screenshots on the internet of people who have lost their entire capital while trading with extra leverage.

So before doing leverage trading, you must have trading skill expert level, otherwise it is easy to make loss instead of profit.

This is a very bad advice for beginners. Man, If y'all beginners manage to stumble upon this, DO NOT OVER LEVERAGE! or better yet, NEVER GO TO FUTURES and MASTER FUNDAMENTALS in trading first instead! If you really are itching to trade, do spot while you are still learning about the fundamentals and only use 1-5% of your funds first. Normally, I would advice beginners to start off with the top 20 coins when still learning the basics on trading. But if you are really stubborn and want to try trading shitcoins (which I strongly advice beginners to stay away from) just use 1% of your funds.

Another thing you can do is unvest on good potential low cap coins or start ups. This is a but riskier though but with proper research about specifics like developing team of the altcoin/project, partners and its community, you can drastically lessen the risk.

- Bottom line is that if you have enough time and/or money to invest, please please please do invest first on at least the very basic fundamentals/knowledge about this industry and trading if you are interested in trading before jumping in. Break the cycle guys, to not repeat the mistakes that I, along with dozens of traders have done and may still he doing to this day. You have the chance to learn without experiencing regret, don't waste it.

Because you see, crypto investing and trading is more like a survival game. How long you can sustain constant "just enough profitability" with minimal risk is more important than rare huge wins that are followed by recurring huge losses.


Now if you really don't want to go through such hassle, then better go and gamble in a casino. Because as what I like to say;

"While crypto lottery like jackpot wins really do happen and is not impossible, it doesn't happen pretty often nor does it costs cheap.
Remember, survivor bias is real; you will always hear about the jackpot winners but not about the ones who have gotten their life savings liquidated."


Hope this helps y'all beginners out there.

Actually trading with leverage is much more profitable than trading without it but obviously, it's highly risky for beginners, there is big money to be made and at the same time big money to be lost when it comes to leverage trading, unfortunately, the newbie traders aren't able to resist the temptation that leverage trading provides which means they are too much attracted towards making quick money in the short duration that they forget the concept of risk management which is thoroughly important when it comes to trading for a longer term. So trading with leverage is obviously a great thing to have but new comers shall stay strictly away from it.

If we talk about the advantages of margin trading, the main thing in this will be the fact that it allows you to make a profit when the market is moving down. Those who adhere only to spot trading are forced to sit on the sidelines and wait for a new purchase point and, accordingly, they can only profit from the price increase.

If that is the case then they need to save more money until they have the minimum necessary to trade the markets, I understand your explanation and on the surface it makes sense, but when you begin to think about it more deeply you can see that it does not, 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, if anything they should be even more conservative in their strategies, but since this could limit their profits this is something they do not want to do.

Trading with leverage is double edged sword, it could protect or cut! When the market sentiment is positive such as we have now, it might  be wise to use leverage as you are likely going to have a better prediction. But watch out for bitcoin retest, resistance and support so you know when to short or long!

Leverage trading is very risky. And a sudden pump or dump can vanish our whole account balance. And we lost our money. So, my advise is don't do leverage trading. Spot trading is safe and low risky. So, spot trading is a best option for trading. And if you use leverage trading then just set leverage 3x to 5x. It is a low risky leverage.

Your statement applies most of all to beginners who do not have enough money to fully trade on the spot market. But most professional traders and those who have already mastered spot trading well enough will certainly switch to margin trading. Because this is a completely different level, no matter what kind of deposit you have.

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.

“Some people” will be “good enough”, of course. But MOST people, especially 90% of people who trade will lose their money to the 10% under a large sample. We mere plebs should save, not gamble. Would you advice your poor friend to gamble?

Actually, I cannot say that trading with leverage is a secure way. this may be secure (or fewer risks) for professional traders.
But it is very risky for non-professional or moreover for the beginners.
SL is only one of the features that can help us manage our trading, but it cannot guarantee that it has lesser risks.
I will not take this if I am not ready enough, at least with some knowledge of the features, TA analyzis, and also otehrs.

Yeah, leverage on the other hand will help to highly skilled trader who are capable of predicting market turning points more accurately. If there would be a very little to no negative direction of market movements after we take the positions then we can find leverage trading as a gift but unfortunately no one could predict markets in that manner. So, we need to consider about availing leverage at very low fold or just trading in spot market would be a good decision.

I agree that when our losses are happening in higher magnitude then the pain we are suffering also higher. Just facing the market with actual capital and then keeping the losses within affordable and minimum level will help anyone to be sustaining within market rather than opting for quitting completely.