Trading with leverage

[abrahamtownsend]

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

By using proper risk management strategies, traders can really benefit from leveraged trading.

[abrahamtownsend]

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.

If you are placing random trades without any knowledge then of course it’s gambling but we are not talking about gamblers here. Leveraged trading is for those who believe in strategic moves.

[Wind_FURY]

you can prove it for yourself, try HODLing Bitcoin vs. Trading then track your 10 year results. Plus statistically 90% of active “traders” lose their money to the top 10%. That’s a fact.

OR, I believe MANY of you from before 2017 have experience this. Recall all your trading losses in Bitcoin and compute how much you would be having now if you merely HODLed.

I agree with the half of your statement but I disagree with the other half or more like I do not have data for that. I agree that yes if you hold bitcoin and not trade it, then there is a great chance that you would make a profit from it. Buy bitcoin today and wait for 10 years and you would be doing much much better. However, there is also the fact that traders could make profit, we do not know how many of them make a profit.

But the people who have made significant profit are only the top 10% of traders, 90% will always be left in pleb-world. That’s the truth of the game.

You are saying that 90% of active traders lose their money but there is no proven data for this, you are just making it up, this is the part that I can't agree with because there is no data to back this claim up. So yes, holding is guaranteed profit, so why would people trade I do not know, but if they are making more money than a holder then it would make sense.

There’s no comprehensive evidence to conclude that 90% of active day-traders always lose, some researchers conclude that the losers are only 80%, but there are arguments that the losers can also be higher than 90%, because trading is a zero-sum game. The profits will come from the unprofitable.

Research “90% of traders lose”. You will see NO strong challenges vs. that statement.

[abrahamtownsend]

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.

Just a reminder just because you set a stop loss at a certain price it does not mean that it is going to be executed at exactly the price you specified, there is something called slippage which is the difference between the price you expect to sell and the actual price at which you sell, this means that in a moment of great volatility you could end up selling for a price way lower than what you thought, which means that just when you needed it the most the protection that you thought you had with the stop loss will not be there.

We are ignoring the fact that those with high capital don't need to increase their position size. They are already getting high returns. Also they need not worry about growing their account quickly. Their focus is to protect what they have at the same time trying to earn whatever they can.

[abrahamtownsend]

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.

Exactly my point. If you know what you are doing and how you can utilize it to your advantage, you can definitely reduce the risk.

[LUCKMCFLY]

I do not recommend the leverage when there is no previous experience

I do find that most people are having similar opinions like they will never recommend leveraged based trading but OP got complete different view on leverage trading. Not sure why OP is having different opinion than most of the people of this community.

I really recommend is to start on a platform with real money to be able to test well how it works and what the "take profit" is like.

I understand that being real money or not is not a concern here because you can start with demo money but you should start only in spot trading and not in leveraged trading. Even you are practicing in leveraged environment with demo money, you cannot learn any useful experience there because the market volatility will not let you learn anything out of real time experiences. You must need a common and steady environment where you will spend time to learn things but rushing out everything will not help you to gain knowledge about it.

If, in fact, the OP has to be a case very different from everything common, the logic and what everyone recommends is to be careful with that type of leverage, the idea is to protect the interests of people in terms of economic or economic and this generates that type of advice so that not everyone loses money, I think OP was greatly accompanied by luck.

Sometimes it happens that these types of decisions to leverage work for them, but it really has to be taken into account that luck is not on our side all the time, in that case it is when many enter trading gambling but at some point that luck it ends and that is when it fails.

[sherenikaw]

trading is risky but if we can control it well then it will be profitable. It takes experience and good knowledge in order to be able to control emotions and also be able to analyze the crypto market well, that is what all traders need. in trading we can't do whatever we want without careful thought, don't be rash and but be careful with the crypto market. The ups and downs of the crypto market have made many traders lose control and give up, so we must learn from it.

[Evgenklm]

I think it is necessary to trade with leverage with caution, because this market is eaten by a beginner right away, the liquidation of your deposit can happen at one moment, but there is also positive news on the other hand, this market is very profitable if an experienced trader knows how to cope with it.

[Lionden009]

Leverage is a critical trading instrument. Leverage is the most effective technique to create a large sum of money with a little quantity of beginning capital. Typically, traders borrow money from their brokers in order to maximize their profits with a modest investment. However, investors frequently forget that this trading tool is a high-risk game that may result in massive losses.

[Ararbermas]

Using leverage is not safe for beginners that's why it's highly recommended to stay on spot trading to prevent liquidation, unless if you are sure that the coin your trading is really promising because if not you will end up nothing.. Especially using 10x or more leverage because in just one mistake there's a chance that capital will disappear in just a short period of time ..that's why as well mostly traders relies on 2x leverage in order manage the risk. So better think about it before trading with leverage to prevent massive losses and make sure you're trading a good coin before using that feature to have a good profits after all.

[doremonchina]

Numerous expert merchants get cash to contribute or utilize techniques that permit them to put away more money than they have close by This is called contributing with influence or influence exchanging This allows them enormously to build their purchasing influence and likely returns just as their danger.

[zaesvlas]

The biggest problem with this type of work is risk. As for me, it is really important to be ready for this.

[aquafinewater]

The trading with leverage is too much risky and mostly for newbies and I never recommend leverage trading because now days market full with whales first whales greed us then play a game in market so use only less leverage if you want but I think spot Is best

[abrahamtownsend]

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.

I don't think there could be anything not covered by this community about crypto trading or leverage trading because in the past we had lots of similar discussions and on-which people had contributed into the core level of each details so I guess you cannot bring any merits of leverage trading because it is already proven as one of the biggest dangerous way of trading for or both beginners and experienced traders.

Still I read that leverage trading might be suitable for the traders who are all experts in technical analysis at the same time it is a fact that even professional traders are not consistent in profit making. By combining these two facts, you cannot win in leverage trading even being good at technical analysis.

Fact also says that 90% of the traders fail no matter what. Should we quit trading?

[SmokerFace]

Yes, I agree that it's the right time to invest in the crypto market and a golden opportunity for beginners.
Also investing small amounts reduces the risk. No one can predict exactly what will go to happen in the market. Will it go upwards or down? It all depends upon market trends.
Which is always be uncertain.
Also getting proper knowledge of the market and understanding technical analysis is also necessary.

[Hamphser]

Yes, I agree that it's the right time to invest in the crypto market and a golden opportunity for beginners.
Also investing small amounts reduces the risk. No one can predict exactly what will go to happen in the market. Will it go upwards or down? It all depends upon market trends.
Which is always be uncertain.
Also getting proper knowledge of the market and understanding technical analysis is also necessary.

For spot then yes but for leverage then it is really very risky and i would say that it is really like gambling which you shouldnt really step your foot on

here if you arent really ready nor experienced with the market because you are just basically dealing or playing with fire in talks with futures or leverage.

But if you could bare with the risk then its your choice but if not then better avoid and stick on spot.

[abrahamtownsend]

I do not recommend the leverage when there is no previous experience

I do find that most people are having similar opinions like they will never recommend leveraged based trading but OP got complete different view on leverage trading. Not sure why OP is having different opinion than most of the people of this community.

I really recommend is to start on a platform with real money to be able to test well how it works and what the "take profit" is like.

I understand that being real money or not is not a concern here because you can start with demo money but you should start only in spot trading and not in leveraged trading. Even you are practicing in leveraged environment with demo money, you cannot learn any useful experience there because the market volatility will not let you learn anything out of real time experiences. You must need a common and steady environment where you will spend time to learn things but rushing out everything will not help you to gain knowledge about it.

I do respect everyone’s opinions but maybe being on the side of what everyone thinks is right is the reason most of us are failing. I don’t believe in following herd mentality. I do what I feel is right (not for the sake of being different).

[abrahamtownsend]

The biggest problem with this type of work is risk. As for me, it is really important to be ready for this.

Risk is and will always be there in trading. Without taking risks we can’t make money.

[abrahamtownsend]

Using leverage is not safe for beginners that's why it's highly recommended to stay on spot trading to prevent liquidation, unless if you are sure that the coin your trading is really promising because if not you will end up nothing.. Especially using 10x or more leverage because in just one mistake there's a chance that capital will disappear in just a short period of time ..that's why as well mostly traders relies on 2x leverage in order manage the risk. So better think about it before trading with leverage to prevent massive losses and make sure you're trading a good coin before using that feature to have a good profits after all.

I agree with you. You don’t need to over leverage your positions.  2X  is enough and can earn you good profits.

[MIner1448]

A lot of young users who want to get started very quickly go to futures to trade with leverage, just not understanding the basics of trading they immediately drain their capital in the first minutes of trading. I advise everyone in the beginning not to go more than 5 times the leverage, of course everything depends on the volatility, but still you shouldn't even go to x10 from the start