Trading with leverage

[otundebis]

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!

[Silberman]

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.

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.

[tvplus006]

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.

[teosanru]

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.

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.

[Similificator]

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.

[ScamViruS]

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!

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.

[Myleschetty]

The most important thing to understand is that it can be dangerous. As for me, a trader cannot always guarantee his profit.

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.

[Oshosondy]

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.

[Wind_FURY]

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.

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.

[sarmrakib]

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!

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 .

[jaberwock]

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.

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.

[geegaw]

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!

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 .

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

[zaesvlas]

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.

[Wind_FURY]

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.

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.

[Silberman]

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.

[LUCKMCFLY]

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.

[OnlineCasinoBoard]

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.

[pgbit]

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.

[add1ct3dd]

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.

[sana54210]

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.