Leverage Trading

[AakZaki]

~snip~

i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.

It's very risky, but maybe it will also make you quickly have a lot of money. Maybe if your capital is large take levergae 5x that alone is enough. Remember you have to have more remaining funds to avoid liquidation. You should also think of alternaive strategies to avoid greater losses. I don't like this trade, I prefer spot trading because there is less risk than leveraged or future trading. Maybe if you learn it you can do it but everyone has their own pleasure to get the best profit.

[Wind_FURY]

This is an old Bitcoin meme created through a South Park cartoon. It’s very funny and very relatable because it represents what/how most of us plebs were when we haven’t learned the hard way yet. I believe it was also commisioned by a Bitcoin trader.

https://www.youtube.com/watch?v=FD0mrmmYaKQ

[smartaction]

Hello,
is there any difference between a trade with 5.000$ with 1x leverage and on the other hand 100$ with 50x leverage?
The only difference I see is the liquidation price of course. But is there any other differnce?
Thank you all, Frank

Your idea is not false. But if you trade for $100 with 50x leverage then it can requisition you within 1 min In that case you will absolutely lose that $ 100. But if you use $5000 in spot trading. Even if the price of your purchased tokens is reduced by 99%, you will not have any problem but you can hold them for recovery. So it is always better to avoid leverage trading. Coz it is soo risky

[gamer4156]

In conclusion there's a producer and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. However after some nerve destroying encounters that individual backtracked their means and is more calculative this day. Then again, there are even capable merchants who avoid influence exchanging at all cost.

[pressing207]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

[wxa7115]

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.

I do not think they actually forget that the market can move in different directions, it is just they are so convinced on what they do that they never consider even the possibility of the market moving against their prediction.

This is one of the reasons why people act so emotional when their prediction is wrong as they take it personally if the market does not follow their prediction, forgetting that the markets do not really care about them at all or about any trader or investor in particular and that the ones that should adapt to its movements are themselves and not the other way around.

[Lanatsa]

Without a doubt, whenever I see a newbie with dreams of making 100x in a week I warn them that this is not possible, as you may guess the majority do not listen but I think there is a small percentage of them that do and it feels great to help other people on the beginning of their journey.

However even if we help them out that does not mean that they have actually learned their lesson as the temptation to invest in all kind of useless coins or use a lot of leverage will always be there, and if they cannot remain firm on their desire to stay away from those options then they will eventually lose their money.

The leverage is just too huge to resist for newbies but having just $100 with 50x is going to be easy money for the platform to bet on to get the margin call.

New investors forget that the market moves in two directions which if they have just started investing last year, then they've only seen the market in one direction. It's not a good decision to dip thier feet on options. They can easily lose thier money when the market moves against their position.

I do not think they actually forget that the market can move in different directions, it is just they are so convinced on what they do that they never consider even the possibility of the market moving against their prediction.

This is one of the reasons why people act so emotional when their prediction is wrong as they take it personally if the market does not follow their prediction, forgetting that the markets do not really care about them at all or about any trader or investor in particular and that the ones that should adapt to its movements are themselves and not the other way around.

You should really versatile on the  first place on which you would really be needing that kind of mindset since it could possibly move which is totally opposite on what you had predicted.One of the most

important tools which you could make use is having that Stop-loss.This might really be not important for some leverage traders but if you do want to trade conservatively then consider on using one

so that you wouldn't really be that liquidated easily just like other traders who had just stepped their foot into leverage but don't know on how badly they could able to experience losses
if they don't know on what they are doing.

[tvplus006]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

[EdenHazard]

~snip~

i never recommend anybody to make more than 10x leveraged trading , too risky and specilative over there once you get in.

It's very risky, but maybe it will also make you quickly have a lot of money. Maybe if your capital is large take levergae 5x that alone is enough. Remember you have to have more remaining funds to avoid liquidation. You should also think of alternaive strategies to avoid greater losses. I don't like this trade, I prefer spot trading because there is less risk than leveraged or future trading. Maybe if you learn it you can do it but everyone has their own pleasure to get the best profit.

Well actually it's applied for no matter huge or small capital.

You must be in the lowest possible of leverage , you know what? The flash drop and or the flash pump is the nightmare for the leverage trader and nobody knows when that shit will do occurred. So yeah the dark side of leverage trading much more popular to talk than the bright side one , that's the fact unfortunately.

[Wind_FURY]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots,  although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

[Wexnident]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots,  although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

Well, it is relating to newbies instead of experienced traders though. I guess what OP was saying was about how newbie traders would "always" experience breakdowns and stressful experience, compared to experienced traders, who experiences everything all the same BUT they do know how to handle their emotions properly and would rarely let it run out of control. It's probably easy in terms of switching since you have experience, but the risks would still have the same problems all the same.

[CryptoYar]

Any trade with leverage leads to a complete collapse

not really! If you calculate your risk and reward and trade with stop loss then no worries. I mean You gotta define that if my prediction fails in this trade then I can bear x% loss and I will book my profit at this particular price. This way you can't lose your whole money otherwise you'll receive an email from your exchange about liquidation

~ switching to leveraged trading is not as easy as your post is telling everyone.

True!
The spot is quite easy and you don't lose anything until you sell your tokens ( you can hold till price recovery) on the other hand leverage trading is quick and if your prediction goes against. you'll lose money.

[Benefactor]

Ultimately there is a creator and taker applied when you open/close your position so you ought to consider that huge loads of expense alongside the liquidation value that you are watching. However after some nerve destroying encounters that individual remembered their means and is more calculative this day. On second thought, there are even capable brokers who avoid influence exchanging at all cost.

[Wind_FURY]

Any trade with leverage leads to a complete collapse.  There are practically no people capable of controlling their even mental state for a long time.  This is constant stress. and a breakdown, eventually.

This statement will be true in relation to beginners who do not have experience and trading strategies with leverage. If you have learned how to trade on the spot market and have not lost your deposit, you can safely switch to margin trading, but at the same time you must comply with risk management.

It’s actually not, and will not always be true, because even experienced traders are also affected by human emotions and some other patterns of behavior, causing them to be vulnerable in making mistakes sometimes. They are not robots,  although they make less mistakes than newbies. Plus switching to leveraged trading is not as easy as your post is telling everyone.

Well, it is relating to newbies instead of experienced traders though. I guess what OP was saying was about how newbie traders would "always" experience breakdowns and stressful experience, compared to experienced traders, who experiences everything all the same BUT they do know how to handle their emotions properly and would rarely let it run out of control.

Debatable, that’s why 90% of active traders lose. If I ask you, and you honestly answered, what percentage of the people in this forum who would say that they consider themselves to be an “experienced active trader” are truly profitable in trading?

It's probably easy in terms of switching since you have experience, but the risks would still have the same problems all the same.

“Probably”.

[pressing207]

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

[Mauser]

Reading through the comments here it seems that most people here think that leverage trading is bad for beginners and will very likely end in a collapse, whereas for experienced trader it's a good way to increase returns. I disagree with that, even the most experienced trader can get into trouble when using leverage. Knowledge and experience is no guarantee that our leveraged positions are going to be profitable and not blow up. For me leverage means to reduce the possible margin of error we can have in our trades. We basically move ourselves closer to the edge of a cliff, while having a chance for higher returns. I might be so critical because of bad experiences myself with leverage. With a traditional long position we can always sit out a drop in prices and make our money back eventually, with a leveraged position we will be forced to close our position or lose all the money.

[pressing207]

Reading through the comments here it seems that most people here think that leverage trading is bad for beginners and will very likely end in a collapse, whereas for experienced trader it's a good way to increase returns. I disagree with that, even the most experienced trader can get into trouble when using leverage. Knowledge and experience is no guarantee that our leveraged positions are going to be profitable and not blow up. For me leverage means to reduce the possible margin of error we can have in our trades. We basically move ourselves closer to the edge of a cliff, while having a chance for higher returns. I might be so critical because of bad experiences myself with leverage. With a traditional long position we can always sit out a drop in prices and make our money back eventually, with a leveraged position we will be forced to close our position or lose all the money.

You must be a very young man. Good luck to you! There are no exceptions in this life. There is a concept of swap. (broker's interest). It is impossible to hold long positions for a long time.  And remember me later. Hello to your wife.

[Wind_FURY]

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

That’s not always the truth. Professional traders also use leverage, the right way. But if the trade is made with a capital amount of $100.00, and leveraged to 50x, then yes, it definitely indicates that the owner either is finacially insolvent, OR wants to gamble.

[pressing207]

Any leverage indicates the financial insolvency of the owner. Greed of the subsequent collapse anyway.

That’s not always the truth. Professional traders also use leverage, the right way. But if the trade is made with a capital amount of $100.00, and leveraged to 50x, then yes, it definitely indicates that the owner either is finacially insolvent, OR wants to gamble.

All professional traders sit in generalized teams. No one asks them. Alone, they are all geniuses. And the result is a complete zero. Whales are the generalized brain of little morons.

[tvplus006]

Debatable, that’s why 90% of active traders lose. If I ask you, and you honestly answered, what percentage of the people in this forum who would say that they consider themselves to be an “experienced active trader” are truly profitable in trading?

If we take into account the messages that are left on this forum, then 90% trade with leverage and make a profit at the same time)) I understand that traders are wishful thinking and thus trying to raise their authority in front of others. But still, I am sure that a trader cannot do without margin trading, at least when opening short orders.