Future trading awareness of easy money liquidation

[Oshosondy]

This poll is not for everyone, it is for people that have traded, used the option taken to make profit.

I have noticed many traders are losing to trading, there are many reasons that caused this. The first I know are the new traders, they know nothing about trading. What I also know is that some people are not trading, they are using the candle stick to gamble but thinking they are trading, only people that know the do and don't of trading are the ones that are not gambling and making use of technical and fundamental analysis for their profit making.

I have noticed that some people know about trading already, but they take it extra mile by leveraging their trading using future derivatives, some people are good traders, they start to leverage which makes them become a poor trader and they lose. This could have been as a result of the leverage used which is definitely the reason though.

Assuming a trader want to increase his trading amount through leverage, what leverage is the best, if you insist on not using leverage you can also go for that, if you believe only spot trading is better without making use of future derivatives to trade, then you can also specify.

[1714717283]

1714717283

[1714717283]

1714717283

[1714717283]

1714717283

[tranthidung]

I have noticed many traders are losing to trading, there are many reasons that caused this. The first I know are the new traders, they know nothing about trading.

Even if they are not newbies, not new traders, it does not mean they are professional traders. I mean know how to trade does not mean they are pro. Consequently, they are not able to get profits in the market by trading.

According to many stats, in general, traders bear more loses than investors. Investors earn more profit than most of traders.

Reference: The odds of day trading yourself to a profit are lower than you expect

Additionally, the risk of loss from Leverage or Future trading are much higher than Spot trading. Leverage from 5x+ are very risky.

[logfiles]

I will speak for myself. I do use the 10x leverage mostly. With the volatile crypto prices. You can easily make huge losses or get liquidated event at 10x so I use the leverage alongside other conditions such as;
1. The market must be trending in a give direction
2. The risk-reward ratio should be at least 1.5 and above
3. Stop loss should not be more than 2%
4. The win rate should be above 60%

Now losses are inevitable but what matters is keeping a high winrate with a good risk reward ratio

[milewilda]

Futures is simply like gambling on my own perception and this isnt something to be touched by newbies or new in trading because even veterans is really finding this type of trading to be that risky considering on how fast you could blow up your own account.

Spot trading is much preferable but basing on my own experience then the highest leverage i did really make out some trade in futures is on max of 10x.
I had never intent on doing 50x or 100x.

You would really be finding this one to be interesting when you profit out but same goes when you do lost up big time.
So be wary on that one.

[adaseb]

I think the average leverage is something like 10x this was confirmed by Arthur Hayes of the Bitmex exchange a few years back. Most people use leverage to reduce counter party risk. Instead of sending an entire BTC to trade you can just send 10% and use 10x leverage and if the exchange or your account gets hacked you only lose 10%.

You can always add margin anytime to prevent liquidation and withdraw when your balance becomes too big. I think that nobody actually trades 100x successfully. Maybe 25x if someone is taking a quick scalp however 100x means if the price moves less than 1% against you, you are liquidated.