FOMO of bull market

[wxa7115]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

Why did you decided to change your strategy? Even if you had been right and the price of LINK went up you should have used the leverage that you have backtested in your strategy and the one you have enough experience with.

If this was because of FOMO or greed then you need to rethink your strategy and even take a break from the markets, because if this happened to you now, things could get a lot worse for you once the bull market actually appears and messes with your emotions once again.

[cafter]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

Here's some lessons I already learned but want to write here so that other users can learn from it.
1. Do not left a trade overnight, without placing a alert on prices, without placing an stoploss. we need to keep an eye on trade with which have huge leverage size.
2. do not take decision by seeing good news and greenery everywhere market does opposite most of the times.
3. do not lose control and increase leverage after some losing trade, instead stop trading for that day. and the loss is bigger than take a short break.
I used to trade with 20x leverage and after losing my control I switch to 50x leverage and get liquidated everytime, if the price gone in my favor I take profit before hitting my target.
because we tend to hold losing trades. but now i don't do these stupid mistakes.
I now trade with 2x-5x leverage. and if I want to take a risky trade than I trade with 10x leverage by using 5% margin.

[justdimin]

I don't day trade, I open positions and leave them, I've been successful with it, but I stick with 2x-4x normally while here, I went 10x due to fomo, and that makes liquidation price close so what happened, happened.

It was my lack of analysis, and following the herd, that caused this happening.

Apart from what you have said, I think the real one that cause you to lose is what we call greed, because you increased your leverage by 6 levels. But before that is you FOMO'ed. I think FOMO still have some element of greed. And when we are greedy, we often neglect things like making a research or analysis (like you said there).

What happened have already happened, so there is nothing much we can do about it other than taking it as a good lesson in hopes of improving ourselves next time. I know the market is improving since last time but their movements are not consistent lately. So you shouldn't FOMO. It is too early of doing it.

[Wind_FURY]

Sorry for your loss, I know how it feels as I have made similar mistakes in the past but as long as we take this as a learning curve or a lesson learnt hard way we can still earn it back at the right moment of you have a strategy.

I have to share just two things as follows:

1. Never go for more than 2x leverage for any Altcoin as the chances of winning are lesser compared to losing since we cannot control greed at certain point of time and end up losing it all whatever we have earned little by little.

2. Even for Bitcoin you cannot used leverage of 10x, as per my understanding we can take a maximum of 4x leverage in Bitcoin.

I believe that for newbies, it's probably better to merely Buy and HODL Bitcoin or DCA and HODL, then treat the wallet like it's a savings account. I saw a newbie that is trying to convince everyone that it's already "too late" to invest in Bitcoin. Laughable! Because if a person truly tried to understand Bitcoin and how it's a technological breakthrough that could influence that evolution of money, then I'm very confident he wouldn't say such words.

Many newbies that wanted to "trade" because they wanted to be a "millionaire" would have been in a better position financially today if they merely saved and HODLed Bitcoin.

[tvplus006]

...Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

I think the second lesson you should have learned after liquidating your position is the mandatory use of stop loss. Even if you set the minimum value slightly above the liquidation price, you would save some of the money that the exchange charges for the liquidation of the position.

[libert19]

Many newbies that wanted to "trade" because they wanted to be a "millionaire" would have been in a better position financially today if they merely saved and HODLed Bitcoin.

That's quite true for any alt, not merely for Bitcoin, but yeah it's quite hard to find right alts sometimes. One of my friend did lots of trades of Matic back when it was few satoshi, had he just purchased and held, he would be having more money than however much he made by trading it.

...Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

I think the second lesson you should have learned after liquidating your position is the mandatory use of stop loss. Even if you set the minimum value slightly above the liquidation price, you would save some of the money that the exchange charges for the liquidation of the position.

Thank you! Will keep that in mind.

[Bushdark]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

There are so many lessons we need to learn from the market. Most time the reason form our failure is greed. We need to make sure that we don't over leverage because this alone had been the problems of many traders and what usually lead to there failure.
We don't need to be greedy as a trader because this can give us a bad luck if we don't work and study the market very well before we enter the market. You have learnt your lesson and it is left for others to work on themselves too and prevent future loses.

[Hamza2424]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

For sure chainlink will out-perform the ETH in terms of the rewards, from the current price range I'm expecting at least a 7x return, but having a long position in the current timeline is really not a good idea because the short-term market flow goes with the hype and currently shitcoins and BRC-20 tokens are in the hype. People are shining the low-cap BRC-20 crazily.

After the huge pumps, I'm expecting the end of the meme coins rally in the coming 2 to 3 weeks, and you can try short in over-pumped memes's not recommended at all just a tip.

[Ziskinberg]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

No matter how bullish and promising the market is, do not risk with high as 10x leverage because the risk to lose is 10x as well. You don't hold what the future price of your coins, it can be profitable today but you can't say if it will stay that way tomorrow, so always do with caution. Trading using leverage is already risky, so how much more if you make it 10x, that is too much to handle your losses.

It's safer to stay with 2-4x leverage, that way the risk to lose is not also very high. As long as you can still manage your losses, that's fine enough.

[GbitG]

~snip~

Apart from what you have said, I think the real one that cause you to lose is what we call greed, because you increased your leverage by 6 levels. But before that is you FOMO'ed. I think FOMO still have some element of greed. And when we are greedy, we often neglect things like making a research or analysis (like you said there).

What happened have already happened, so there is nothing much we can do about it other than taking it as a good lesson in hopes of improving ourselves next time. I know the market is improving since last time but their movements are not consistent lately. So you shouldn't FOMO. It is too early of doing it.

Yep, dude, you said it right that whenever we are greedy so spontaneously, we will be faced with a loss because, in greed, people don't look around they just focus on money and think about it, while as a result, they lose everything. I mean, they put themselves in FOMO despite the fact that they don't even know that FOMO is like an ocean wave; it can flow you away. I often find that when people see FOMO in the market, they jump right in to take an entry even though they haven't looked at the technical analysis a bit and follow the people's words without any research. When the end result comes out, he gets nothing but a loss and regrets that if I had done even an iota of research on my own, then I would not have suffered any loss.

So it means to say that we should learn a lesson from a similar incident and find measures against it in the future so as not to fall into this mistake again.

[bitgolden]

I believe that for newbies, it's probably better to merely Buy and HODL Bitcoin or DCA and HODL, then treat the wallet like it's a savings account. I saw a newbie that is trying to convince everyone that it's already "too late" to invest in Bitcoin. Laughable! Because if a person truly tried to understand Bitcoin and how it's a technological breakthrough that could influence that evolution of money, then I'm very confident he wouldn't say such words.

Many newbies that wanted to "trade" because they wanted to be a "millionaire" would have been in a better position financially today if they merely saved and HODLed Bitcoin.

That is true, newbies do not have the experience to start trading right away, they are not going to make all that much profit and they should avoid spending that much money. I get that some people think that it would be a smart decision to keep trading because bitcoin is a volatile thing and you could buy or sell to make money, but that doesn't come in naturally and you make profit on the first day and just become rich after a month, that doesn't work like that at all.

We need to realize that we can't really make that much money all that easily, we need to arrange something that will make it a bit different, and we need to be careful with what we are doing and the return should be according to how it could become.

[Issa56]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Even when there is a bull run, you have to manage your risk. You shouldn't just jump into a trade with high leverage, 10x leverage is kind of high. I am sure you should have learned your lesson. With the leverage that you used, you should have made use of stop loss. It's going to help you reduce your loss even if the trade goes against you. If you have used stop loss in the trade, then you will have lost some percentage of your money, but not all. Your stop loss will cut your loss. Stop-loss is kind of useful in cases like this.

It's just better if you go back and be maintaining low leverage in your trade, don't think we are already in a bull run, then you will start using high leverage, always maintain low leverage, and don't trade with all your money, just enter a trade with some percentage of your funds and leave the rest so that you won't get liquidated easily.

[Kelward]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

I guess that what you did was gambling, because using 10× leverage greatly increased your risk, because if you had used like 2-4× it would have minimized your risk. High profits comes with high risk, so a trader has to decide the level of risk that they can absorb, but taking very high risk in crypto trading, knowing how volatile the market is, can be best described as greed. Personally I prefer to minimize risks in everything that I do, especially when I know that the outcome is not certain. It seems to me like the high risk that you took is a one time thing, so it's better to stick to the 2-4× leverage that you're used to, instead of taking it higher, so you can easily absorb the shock of loses if it occurs. Wish you all the best as you minimize your risks.

[Jatiluhung]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

I think the problem is not the leverage you use. But I think you are using a margin that is too large compared to your total capital. I only use a margin of around 5% of my total capital (Cross). And even I often use 10x - 20x leverage and it's still fine. But actually, with current market conditions, it is natural that many are liquidated. Because there has been a rapid decline. Today's market volatility is truly harder to predict. Even some of my analyzes were wrong. But I rarely trade in the future market. But sometimes do it every once in a while. Or several times a week. Because I don't trading scalping but I prefer to swing trading.

[SquirrelJulietGarden]

I think the problem is not the leverage you use. But I think you are using a margin that is too large compared to your total capital. I only use a margin of around 5% of my total capital (Cross).

Cross margin is more risky than Isolated margin.

When you use Cross margin, if your portfolio value drops, you will have big problem as your portfolio value might drop to a threshold of forced liquidation. Like FTT, LUNA drops, you will never be sure that your portfolio will not drop 80% or more when you are sleeping.

And even I often use 10x - 20x leverage and it's still fine. But actually, with current market conditions, it is natural that many are liquidated. Because there has been a rapid decline. Today's market volatility is truly harder to predict. Even some of my analyzes were wrong. But I rarely trade in the future market. But sometimes do it every once in a while. Or several times a week. Because I don't trading scalping but I prefer to swing trading.

If you are professional in margin trading, I have nothing against about your strategy that works safely for you but for newbies, it is risky to apply this strategy.

Even you a professional, I believe risk is not like 0%.

[R100K-Martin-Lunger]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

Here's some lessons I already learned but want to write here so that other users can learn from it.
1. Do not left a trade overnight, without placing a alert on prices, without placing an stoploss. we need to keep an eye on trade with which have huge leverage size.
2. do not take decision by seeing good news and greenery everywhere market does opposite most of the times.
3. do not lose control and increase leverage after some losing trade, instead stop trading for that day. and the loss is bigger than take a short break.
I used to trade with 20x leverage and after losing my control I switch to 50x leverage and get liquidated everytime, if the price gone in my favor I take profit before hitting my target.
because we tend to hold losing trades. but now i don't do these stupid mistakes.
I now trade with 2x-5x leverage. and if I want to take a risky trade than I trade with 10x leverage by using 5% margin.

Great insights. I think at some point in time we all used to fall victim to high leverage and FOMO. It’s a matter of experience. I stick to a similar strategy, 2x-5x is my sweet spot, with 10x for occasional riskier bets with strict 5% margin. It keeps risk in check while offering some flexibility. I also use an AI-driven stop-loss system and use a long-term analysis and data-driven decisions when executing trades. It's necessary to protect your capital and make smart, calculated moves and not chase quick wins.
If you have any questions you can contact me via my Discord: https://discord.gg/dCvaBZWNcG

[carlfebz2]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

I think the problem is not the leverage you use. But I think you are using a margin that is too large compared to your total capital. I only use a margin of around 5% of my total capital (Cross). And even I often use 10x - 20x leverage and it's still fine. But actually, with current market conditions, it is natural that many are liquidated. Because there has been a rapid decline. Today's market volatility is truly harder to predict. Even some of my analyzes were wrong. But I rarely trade in the future market. But sometimes do it every once in a while. Or several times a week. Because I don't trading scalping but I prefer to swing trading.

Using up 10x wont really be that bad but of course you should really be needing that sufficient knowledge and capital for you to be able to hold up your position and not would be that liquidated but of course it would really be always depending on the price that had been set out.My maximum leverage on a trade would really be just that only limited to 10x and past beyond that then i would say that it would really be just that a pure gambling and this is something that you should really be avoiding in the first place. Getting FOMO or trying out to get in when the price is already peaking then it would really be just that a foolish action
that would be made out by someone. This is where usually people would be making out those immediate cut losses on the time that they would really be making some negative ports.

This is why as much as possible, you should really be that trying out to control your emotions specially when you are seeing that huge candle because if you wont really be that making
yourself that tough when it comes to mindset and emotion then this is where usually loses would really be kicking in and this is why it is really that
important on having these considerations.

[shinratensei_]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Even when there is a bull run, you have to manage your risk. You shouldn't just jump into a trade with high leverage, 10x leverage is kind of high. I am sure you should have learned your lesson. With the leverage that you used, you should have made use of stop loss. It's going to help you reduce your loss even if the trade goes against you. If you have used stop loss in the trade, then you will have lost some percentage of your money, but not all. Your stop loss will cut your loss. Stop-loss is kind of useful in cases like this.

It's just better if you go back and be maintaining low leverage in your trade, don't think we are already in a bull run, then you will start using high leverage, always maintain low leverage, and don't trade with all your money, just enter a trade with some percentage of your funds and leave the rest so that you won't get liquidated easily.

the thing with bullrun that people tries to ignore, just trying to buy when the price already high, even worst, opening position with high leverage to long certain coin while the price is already quite high enough, of course it will get liquidated, majority of people are getting fomo'd by such thing and does make that mistake therefore we need to know that investing at bullrun doesn't necessarily means we are safe and gonna get more profit, if we bought at the top just because we are getting fomo'd by the fact that other people make profit.
I honestly if its spot trading, no time is safer to invest other than when in bearish where everything is already so undervalued that we can be buying some altcoins out there and not worry about the coin dumping to the very bottom because we are already entrying at the bottom.
i always have tendency that investing around bullrun will eventually left us losing and need to wait for another bullrun which gonna take years to come.

[jeraldskie11]

So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.

I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it's only up from here, and you see how wrong that turned out.

Take whatever lesson you want. For me, it's to stick with 2-4x leverage with which I tend to do good, don't allow greed to enter.

Since there's a liquidation, it means you're using futures trading. This is the disadvantage in futures trading, while if you only use spot you wouldn't get liquidated. Some traders prefer futures because they can use leverage. However, using 2x to 4x leverage is quite safe since the liquidation price is too high. So if you increase your leverage the size of your liquidation will decrease. That's the reason why we should always stick to the plan we used to be.

[BlackBoss_]

Since there's a liquidation, it means you're using futures trading. This is the disadvantage in futures trading, while if you only use spot you wouldn't get liquidated. Some traders prefer futures because they can use leverage. However, using 2x to 4x leverage is quite safe since the liquidation price is too high. So if you increase your leverage the size of your liquidation will decrease. That's the reason why we should always stick to the plan we used to be.

Forced liquidations can come from Leverage Trading or Futures Trading. Both trading types are risky to use than Spot trading or more safer, Holding.

Even Spot Trading has less risk than Leverage and Futures Trading types, you will have to leave your bitcoins on a centralized exchange to trade with Spot. It is risky.

Reminder: do not keep your money in online accounts.