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Author Topic: Is this also your strategy to avoid hitting your stop loss early?  (Read 439 times)
teosanru
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April 21, 2022, 06:27:59 PM
 #41

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
I don't think you should calculate in this manner, rather than this way just simply take the trade with a stop loss and take profit, your stop loss should be defined by the maximum amount of money you are willing to lose on the trade, based on this amount you should start and end the trade  if it does not goes into profit, adding up to profitable trades is a good idea but this is successful only in case of a few patterns like in cases of breakout you might not get a chance to enter on a second point because move could be so quick.
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April 21, 2022, 06:41:18 PM
 #42

I prefer to do it in the spot market. With low Margin and low Laverege this makes us take advantage, because we can control it. But if liquidation still worries you, I think the spot market is the safest place to trade. You will keep everything in your account safe if you can use the spot market strategy well. Most of the strategies we use make us confused in trading, to be more profitable in trading I can still rely on the spot market.

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April 21, 2022, 11:59:00 PM
 #43

I know that lower margin and low leverage are also farther away from the liquidation price, so is it okay to set low margin and low leverage first to avoid losing if your strategy doesn't work, and then add if does the price follow your strategy? Is this also your strategy?
Taking low margin and leverage means taking lower risks. Although this also means lower profits to be gained. But as long as we are consistent, this doesn't matter. I personally also prefer to choose using low margin and leverage when I was still trading in the future or with leverage. For, I am not a high-risk taker enough.
However, everyone must have their own choices, sometimes, some traders (mostly high risk-takers) will prefer to choose high leverage to gain high profits even in only few trading activities.
Once more, it is personal preference based on each strategy and lso management of fund and risks. They are related each other.

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jossiel
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April 22, 2022, 11:18:10 AM
 #44

I prefer to do it in the spot market. With low Margin and low Laverege this makes us take advantage, because we can control it. But if liquidation still worries you, I think the spot market is the safest place to trade. You will keep everything in your account safe if you can use the spot market strategy well. Most of the strategies we use make us confused in trading, to be more profitable in trading I can still rely on the spot market.
For those traders that do worry about liquidation whether it's just low leverage or he's into a higher one, it's better to go with the spot market.

You'll have no worry and what you earn it is as-is with it based on how much you trade and the gain it had in the market with the pair you trade.

The same as you, I'm staying with the spot market and I do not worry if I'll be liquidated or not and I can also hold there if I want to.

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April 22, 2022, 04:50:07 PM
 #45

I prefer to do it in the spot market. With low Margin and low Laverege this makes us take advantage, because we can control it. But if liquidation still worries you, I think the spot market is the safest place to trade. You will keep everything in your account safe if you can use the spot market strategy well. Most of the strategies we use make us confused in trading, to be more profitable in trading I can still rely on the spot market.
Actually low or high leverage can all be set. It's just that the risk of high leverage will certainly have high liquidation, this is not recommended. All levels can have advantages and disadvantages so hazard management and analysis is essential. I also prefer the Spot market because the risk seems lower. The strategy adjusts to what you think is comfortable and profitable, no need to feel like a hassle. Because I believe everyone has a different strategy.
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April 23, 2022, 09:08:25 PM
 #46

For those traders that do worry about liquidation whether it's just low leverage or he's into a higher one, it's better to go with the spot market.

You'll have no worry and what you earn it is as-is with it based on how much you trade and the gain it had in the market with the pair you trade.

The same as you, I'm staying with the spot market and I do not worry if I'll be liquidated or not and I can also hold there if I want to.
The fact that you can't get rich overnight with regular spot trading is the main reason why those people do not do it. I am not saying that you can't, but the way it's done is not that simple and it takes time, and that is why we see a ton of people who do high leverage trading in crypto. I know some famous trader turned 70k+ into 1+ million dollars during the hype period for example, you couldn't make that without leverage, or at least it would require you to find the highest earners constantly.

This is why they jump into higher risk trading methods, because they believe that they could make a lot of money that way and that's the main problem.
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April 25, 2022, 05:50:45 PM
 #47

For those traders that do worry about liquidation whether it's just low leverage or he's into a higher one, it's better to go with the spot market.

You'll have no worry and what you earn it is as-is with it based on how much you trade and the gain it had in the market with the pair you trade.

The same as you, I'm staying with the spot market and I do not worry if I'll be liquidated or not and I can also hold there if I want to.
The fact that you can't get rich overnight with regular spot trading is the main reason why those people do not do it. I am not saying that you can't, but the way it's done is not that simple and it takes time, and that is why we see a ton of people who do high leverage trading in crypto. I know some famous trader turned 70k+ into 1+ million dollars during the hype period for example, you couldn't make that without leverage, or at least it would require you to find the highest earners constantly.

This is why they jump into higher risk trading methods, because they believe that they could make a lot of money that way and that's the main problem.
This is without a doubt the main reason for choosing to use high leverage, but it is a mistake no matter how we look at it, after all the more leverage you use the higher the risk you are taking, the person that made so much money from such a low amount of money was probably lucky and he does not know it, after all if 100 people do the same and one gets successful then that person gets all the attention and people ask for his advice, but what they do not see is the other 99 people that lost everything to the markets relatively quickly by taking such a high risk.
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January 31, 2023, 12:54:39 PM
 #48

it is common practice in trading to start with a low margin and low leverage, especially when you are new or unsure about a particular trade. This approach can help you reduce the risk of significant losses and increase your chances of success, this is a best practice for a newbie

Ultimately, the ideal leverage and margin levels depend on your personal risk tolerance, experience, and overall trading strategy

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