Trading with leverage - page 5. | Bitcointalksearch.org

shield132

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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.

Leverage trading has only one pros: If you luckily catch good time, then you can happily see the increased profit, which, according to your leverage, can range from 2x to 10 or 100 or even higher, depends on if it's cross/isolated or you used leverage on futures.

Otherwise, leverage is the thing that can ruin your budget and life. Leverage is great for liquidity provider because in any way, he/she gets the profit and you are the one who risks the capital and the mental health. The market is so volatile that even if you use the lowest - 1x leverage, you can get liquidated in minutes. Yeah, I have seen when price skyrocketed for 1-2 minutes and then felt down.

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Trading with leverage is a good choice for those who know more and exactly understand, but not recommended for beginners.
We know that high profits commonly will require higher risks. It is also the same in this case.
Trading with leverage commonly will have higher profits than others, this can multiple our capital when trading and take big profits.
But, this also requires higher risks, we may also lose our money or because of the liquidity in the market.
This is very dilemma if we are not good enough or professional doing this generally.
But, actually, there are some ways to at least help us to minimize the risks, like using the feature of Stop Loss and also Hedging.
Once more, never try this if we are realy new

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Quote from: justdimin on October 31, 2021, 03:23:55 PM

Leveraged trading is good but only as long as you know what you are doing. There are people who consider the trading market as a gambling house and will just buy any coin and that too with leverage.

I consider spot trading the best form of trading while leverage is good for those with low on funds but high on skill and knowledge. Then comes futures trading which in simple words is terrible and rich man's market. It is manipulated pretty badly and only the rich with unlimited capital can survive such a market. The small traders just bleed out.

Yeah, it can be a catastrophe which most traders wouldn’t like to experience at all. The idea of leverage trading usually sounds cool, why not? When you can use just $1,000 to make another $1,000 and turning your money into double. But the same way that you can turn your money into double is the same way that you can as well end up losing your whole money when the market goes against you. So before anyone considers leverage trading it would be best for them to first of all start with regular trading and make sure that they have maxed out their skills completely.

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Quote from: Wind_FURY on November 01, 2021, 07:50:59 AM

Hahaha bad advice! Those with little money should definitely be adviced to SAVE money, not GAMBLE their little money in “microcaps”!

The main reason why people leverage is because they do not have large amount of money to trade, that is why they instead think of going 2x, 3x or more. It all depends on experience, the leverage used and patience. Some people are good enough to turn small amount of money into something good. If anyone can not start to trade like this with lillte leverage like 2x, then the person can not be a good trader or will lose a lot before becoming a good trader that will make profit.

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Quote from: bamb on October 31, 2021, 09:10:08 AM

Leverage trading is the riskier, you can get wiped out in a minute. Those that are not familiar with future and leverage should stay away until you know your risk and your are willing to take those risks head on! Those with little money to trade can always focused on micro caps!

No ser, it would depend on how much leverage is used.

Hahaha bad advice! Those with little money should definitely be adviced to SAVE money, not GAMBLE their little money in “microcaps”!

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Quote from: justdimin on October 31, 2021, 03:23:55 PM

Quote from: Kimonoe on October 31, 2021, 05:33:11 AM

indeed, with trading leverage we can choose the leverage to be used, and that means the smaller the leverage, the more secure our capital, because we can only use limited lots, the rest of course will easily exit the market automatically. as long as we can manage the opening of transaction lots and manage greed, then with this system we will be more structured towards the planned portfolio

Leveraged trading is good but only as long as you know what you are doing. There are people who consider the trading market as a gambling house and will just buy any coin and that too with leverage.

I consider spot trading the best form of trading while leverage is good for those with low on funds but high on skill and knowledge. Then comes futures trading which in simple words is terrible and rich man's market. It is manipulated pretty badly and only the rich with unlimited capital can survive such a market. The small traders just bleed out.

so if you know where you belong, you should know your limitations. don't push too hard because this will only just hurt your funds.
you can slowly increase your portfolio if you are patient enough in this market and while doing that, you can also increase your knowledge when it comes to crypto. because it is better to learn first hand regarding the tips & tricks because getting it from someone - usually you won't understand its importance. but if you gain it on your own, it would be easy to apply on your next movements.

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Quote from: abrahamtownsend on October 29, 2021, 12:05:20 AM

Quote from: mk4 on October 26, 2021, 11:07:51 PM

While having tight stop losses can definitely help decrease risk, it's definitely going to increase the likeliness of you losing trades by orders of magnitude. Leverage is simply not the best way of learning how to trade. It's mostly just used as a sort of 'Hail Mary' of people with low amounts of money, in the hopes that they could gamble away their small amounts into good amounts.

And leverage isn't the only way of winning big. You can focus on small-mid caps to potentially have higher potential price increases. And yes, these are risky, but not as risky as leverage trading for the absolute trading newbie.

Yes I would definitely not recommend an absolute newbie to use high leverage, but those who have a basic understanding of the market and know technical analysis can surely benefit from it.

I do not think that even those that have a basic understanding of the market should use leverage either, I understand that people want to increase their profits but leverage is a very risky way to do this, especially because I often see people using something like 100x in leverage and anyone using that kind of leverage is just asking for trouble, because as we know the volatility in this market is extreme, so a single movement can be more than enough to force you to close your position due to a margin call.

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Quote from: Kimonoe on October 31, 2021, 05:33:11 AM

indeed, with trading leverage we can choose the leverage to be used, and that means the smaller the leverage, the more secure our capital, because we can only use limited lots, the rest of course will easily exit the market automatically. as long as we can manage the opening of transaction lots and manage greed, then with this system we will be more structured towards the planned portfolio

Leveraged trading is good but only as long as you know what you are doing. There are people who consider the trading market as a gambling house and will just buy any coin and that too with leverage.

I consider spot trading the best form of trading while leverage is good for those with low on funds but high on skill and knowledge. Then comes futures trading which in simple words is terrible and rich man's market. It is manipulated pretty badly and only the rich with unlimited capital can survive such a market. The small traders just bleed out.

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

. 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.

If you are trading only smaller amount means then why should you go for leveraged trading? Moreover tight stolploss are known for easy triggering by considering the amount of volatile we do have in crypto markets. There would be no mandatory requirement to have exposure on leveraged trading. So, simply doing all these in spot market will be more than enough for a trader who looks for gaining experiences.

Quote from: GreatArkansas on October 31, 2021, 11:26:01 AM

Newbie is not advisable to do trading with leverage at first, they might try first spot or even with leverage but they must first start with small leverage.

Instead of going for small leverage, I guess just sticking with spot trading and increasing capital might help any trader as it will not multiply their risk factors. Small or high leverage, anything may get liquidated these days if you are not good at technical to enter at right price levels.

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Quote from: bamb on October 31, 2021, 09:10:08 AM

Leverage trading is the riskier, you can get wiped out in a minute. Those that are not familiar with future and leverage should stay away until you know your risk and your are willing to take those risks head on! Those with little money to trade can always focused on micro caps!

Yep, it is indeed got more risk but there are a lot of people who are owning in trading with leverage.
If you got good risk management and patience in trading, futures market or leverage trading is the best for you.

Newbie is not advisable to do trading with leverage at first, they might try first spot or even with leverage but they must first start with small leverage.

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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.

Is this almost similar to Future? Because I've never done leverage. It seems tempting if this is similar to futures. But if it's the same it seems the risk is very big. I once did Futures trading but I gave up because if it goes down deep without SL then you will lose money. I am currently comfortable playing spot trading. Maybe I'm just uncomfortable because of the unstable emotional factor. You have to be able to control your emotions and that is very difficult. Because I've tried many times and it always failed.

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Leverage trading is the riskier, you can get wiped out in a minute. Those that are not familiar with future and leverage should stay away until you know your risk and your are willing to take those risks head on! Those with little money to trade can always focused on micro caps!

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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.

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indeed, with trading leverage we can choose the leverage to be used, and that means the smaller the leverage, the more secure our capital, because we can only use limited lots, the rest of course will easily exit the market automatically. as long as we can manage the opening of transaction lots and manage greed, then with this system we will be more structured towards the planned portfolio

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Quote from: tvplus006 on October 30, 2021, 05:19:09 AM

Quote from: bhooscream on October 28, 2021, 05:47:40 PM

Yes exactly. Trading with leverage is very risky although we may know how to set SL or CL...

Stop loss is not a panacea for trading with leverage, because its use also requires knowledge and experience of its proper use. After all, if the stop loss level is set incorrectly, it will not only not protect your balance, but will also lead to the fact that you will quickly lose it.

Using up stop loss isnt something that you could indeed make use without any knowledge because this would really in result not only on good things but also in missing out
opportunity considering that price swings on this market isnt some thing that you could just set some shallow stop loss which will really be not good on your trading
dealing.When it comes to leverage then this is something required knowledge which not all would really able to have or simply wont able to get it on
first few tries and i do consider leverage or options to be on that gambling side of things basing of the level of risk.

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Leveraging out the markets is definitely not an easy thing to conquer (and can never be). The most important thing that comes to my mind when I leverage trade is that, I must keep my mind under control and not to lose confidence that my trade will go in profits if it's in loss already, because then, either I'll add more margin or increase the leverage, then remove the margin and then add more USDT in the position that I took out. Leverage trading is no less than gambling IMHO (or call it dice in other words with the odds being selected here as leverage).

Patience and control over yourself, keeping leverage to limited and understanding the highly volatile nature of markets, using some part of the capital and not going all in, even if not tight - stops must be there and even a TP.

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Quote from: tygeade on October 30, 2021, 07:58:40 AM

I am into spot trading of bitcoin against high volume altcoins. I got back up plan of converting my positions into holding hence I am literally profitable with my way of trading without any need of leverages.

Yeah, there are lots of methods are available to make profits out of crypto trading within available funds and also by not losing our peace of mind. Availing leverage definitely a big headache for all the traders as it bring another layer of risk along with what market fluctuations are providing. You really got a working plan. I also have tried this but sold my positions once I got into profit zones.

Spot trading must be 100 times better than leveraged trading even you are good at technical part. Because, most people are switching to leverage from spot trading and migrating for new target levels based on risk/reward calculations makes most people messing up things even they are used to it for years. So, just sticking with what is comfortable definitely will get us good profits even it is slow.

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

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.

Even many people here are into leveraged trading, I guess your question should be "how many people here are consistently profitable with leveraged trading" because against high volatile nature of bitcoin markets, most people get liquidated their account sooner or later. So, if you are trying to enlighten people on the merits of leveraged trading, I guess all your efforts may go in vain.

I am into spot trading of bitcoin against high volume altcoins. I got back up plan of converting my positions into holding hence I am literally profitable with my way of trading without any need of leverages.

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Quote from: bhooscream on October 28, 2021, 05:47:40 PM

Yes exactly. Trading with leverage is very risky although we may know how to set SL or CL...

Stop loss is not a panacea for trading with leverage, because its use also requires knowledge and experience of its proper use. After all, if the stop loss level is set incorrectly, it will not only not protect your balance, but will also lead to the fact that you will quickly lose it.

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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.

It’s years and years of experience, the right psychology, and the most important, THE TALENT which most of us plebs don’t, and will NEVER EVER have. Plebs most of the time don’t have a choice but should do it the proper way. Get a better life through hard work.

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