Is margin trading good for beginners ?

[Allicesmith]

Hello Everyone.

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

[Ararbermas]

Hello Everyone.

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

margin trading for beginners? probably not safe mate, Because you don't know yet how trading really works.. Unless if you have good skills when it comes trading , if not then perhaps much better to practice your skills first by creating a demo account in any exchange that offer such stuff, wherein to assure when you start margin trading you know everything and you know as well that afterwards you will become successful, because if you don't have enough skills and knowledge in it its like you give money to anyone without any reason.. Lol so how you can repay after all? Think about it mate.

[Allicesmith]

In general, everything depends on the trader himself. When I first started working in this industry, I worked on a demo account with a broker Amarkets. This allowed me to try and work with the strategies I needed.

where I can make a demo account?

[YOSHIE]

is there any high chance of losing the money?

Risky question...! And the answer is full of risks...! no one guarantees, beginners lose and profit in trading.

Before trading take a look at some of the suggestions in this topic: Topic: Crypto Trading Strategies for Beginners..., maybe it can help you in trading in the digital/crypto world.

The bottom line: anyone can trade, but every exchange you will find writings like the one below.

Note: All decisions to sell or buy /Crypto/Bitcoin are personal decisions.we are not responsible for any losses created, either directly or indirectly, and at this time or in the future for the Digital Currency transactions that you make.

The decision is yours to make or not to trade.

[shield132]

Hello Everyone.

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

Sorry but this question is really out of logic. Do you know what's margin trading? To make it easy and understandable for you, during the margin trading you borrow the capital from 3rd parties, i.e. when your capital is $100 and you use margin trading with 3x leverage, in reality, you are trading with $300. When the price moves by 10 percent, it moves by 30 percent for you because of your 3x leverage. If the negative movement is more than 30% (for you 90%), then your assets are under the threat of liquidation and once it will become 100% for you, then you are automatically liquidated.
So, what I want to say is that margin trading means the increasing of your capital by borrowing the money from others and when you are a newbie, I have heard that you should trade with a low amount of money and with caution, so, now you know what to do.

[SquirrelJulietGarden]

I want to know your opinion on margin trading is it good for beginners or not?

It is very bad for beginners. In crypto market beginners will have to master the market with 3 to 4 years. I can bet 99% of beginners won't survive after four years if they use margin for trades.

is there any high chance of losing the money?

Depends on formula for liquidations of each exchange, you will lose about 70% of your collateral for your margin account. First liquidation, lose 70% of initial capital. Second liquidation, lose 70% of 30% initial capital or 21% of initial capital.

After 2 liquidations, you will lose 91% of your initial capital. Is it fast or slow rate of losing money?

[Charles-Tim]

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

There is high chance that beginners will lose if trading spot, that is trading without margin, that is why it is advisable to use the amount of money that can not result to depression if lost, becuase funds taken into trading by beginners is consider lost as they most likely will lose it. If the beginner leverage the trade, the more the risk. Not advisable for beginners to leverage.

[mk4]

where I can make a demo account?

Check out eToro, they have a "virtual" account. It's basically a practice account where you're just playing with play money: https://etoro.com/

And yea, don't even start trading with real money as a beginner. Using margin early on is an exceptionally BAD idea.

[Mpamaegbu]

Hello Everyone.

I want to know your opinion on margin trading is it good for beginners or not?

If the trader is a beginner it will be to their best interest to steer clear of margin trading. Spot trading on its own isn't even easy let alone margin trading. Don't let greed overcome you, thinking of how much you stand to rake in at any trade engagement isn't the right way to go in trading. Remember, there's no holy grail in trading and no setup is perfect. That's if the beginner trader even know what a setup is and how to plot it via a vis TA.

is there any high chance of losing the money?

Of course, there will be losses. Even professional veteran traders do suffer losses from time to time let alone noob traders.

[pawanjain]

Hello Everyone.

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

That would be a straight NO from me.

I have been doing margin trading lately. I have tried to play it safe and I am not a beginner at trading.
I can do technical analysis to some extent and get an idea on the market speculation but still I have lost a good chunk of money in margin trading.
The thing to worry here is the word 'beginner'. If you were experienced you could have tried it out but since you are new to this I would recommend you not to go ahead.
Try to win at least around 20 trades with your strategy in spot trading before thinking to trade on margin.
Once you get good at trading only then consider thinking about margin trading.

[teosanru]

Hello Everyone.

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

No not at all. until you understand money management and risk management doing margin trading is extremely risky. Everyone who started this way has blown up or been quite close to blowing up their account. It simply doesn't works because at the initial stage your intent is to predict the movement of the market correctly on which you can only be correct upto 70% now if you don't know money management correctly you will sell off the wining positions too early and will keep on holding losing positions forever. Basically making your trading unprofitable.

[huu78]

Margin trading? isn't this a trade that uses funds from a third party? Of course this is not good for beginners. Because it will fund the cost of collateral to be paid. Bouldn't it be better for you to try trading crypto directly with your own funds, it's easy for you to register on one of the crypto markets like Binance. start with small things like buy at -5% and sell at ++5%. You don't have to read a chart, you just need to make buy orders and sell orders.

[Raflesia]

Margin trading for beginners I think this is very risky, especially the skills needed for margin trading, of course the money that will be brought will be lost, so if you want to try it then I think you need to be ready with the risks that occur and use cold money to do it .

So it's true that the money that is brought in margin trading by beginners to be ready to lose because of all that you will know the real experience, if you are not ready with all this then don't ever do it.

Try to take a safe position and learn little by little.

[The Cryptovator]

I don't know either it's good or bad since I am not much familiar with margin trading nor I am interested in it. Someone asked me a few months back that he want to do margin trade. But I had tried to prevent him from margin trading, but he ignores my suggestion. Then he tried with a small amount and lost it eventually. So for a beginner, it's quite dangerous to participate in margin trade IMO. It's better to understand market sentiment before doing margin trade.

[jackg]

Margin trading is bad for the average person, regardless of their experience in trading - a good normal trader can still fail on margin if they can't properly manage risk.

Don't start margin trading unless you can turn a profit and have some accuracy trading (I'd say if you win 65+% of your last 50 trades, you could try moving to margin trading only then).

[goinmerry]

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

Whatever form of trading does a newbie will enter, there's always a chance of losing the money. Come to think that professionals are even losing up today even for a simple buy low sell high actions.

It's not a wrong move for a newbie to do margin trading for the sake of building experience. But if the reason for immediately advancing to the next step is to make money, that's a bad idea. Try to familiarize first what a newbie should do step by step until they are now ready to advance their level of knowledge.

[Johnyz]

Hello Everyone.

I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

This is too risky for beginners, because you still have a limited knowledge about trading and yet you are taking much risk in margin trading where the exchange allows you to borrow some funds and if you input the wrong numbers, you will be liquidated in instant. Beginners should focus more on spot trading while you are still learning, don’t rush yourself and just take your time to learn things about trading, it will be more worth it this way.

[livingfree]

No and yes.

No, it's not for beginners.

Yes, you can lose money with it since you still have no idea how totally risky it is. It's a gamble if you ever get into margin trading so don't do it if you lack of knowledge but at least you can try it if you want and gain knowledge.

[ScamViruS]

Hello Everyone.
I want to know your opinion on margin trading is it good for beginners or not? is there any high chance of losing the money?

This is a risky decision so I would say no. Margin trading is full risk even for other experienced traders. I think you should work towards increasing your trading skills without wasting time in margin trading. If your trading skills are not good then you will not get good results in the spot market either. If you want to trade in any market by margin or spot you have to have an idea about the market. So new traders should not worry about margin trading, this is for pro traders, the average trader will not be able to stay in this market.

[Wexnident]

Trading in general always has the chance of losing money. And I honestly would recommend starting out with simple trading as a newbie instead of overstepping your bounds and straight going into margin trading. It just has too much risk for someone who doesn't know what they are doing. Even if you've studied guides and videos and whatnot, it still wouldn't beat hands-on experience so I'd really suggest starting with Spot trading instead, or if you want, virtual trading. Doesn't let you feel what the market moves, but it does familiarize you with what you're looking at in a real trade.