Newbie trading experience

[Pandorak]

It is still about the regret of using high leverage in a way your money will be liquidated, but later the market will reverse and get to the price you opened the position and the price of the coin will go more in your favour if not that your trading fund has been liquidated, you are supposed to make profit.

This is just to have fun today. I hope many newbie traders can learn from this, to know how dangerous leverage can be.

It happened to me many times in the past.

Have you not experienced it before?

All of us who trade, especially those who trade using leverage, have certainly experienced this, thinking that using higher leverage can maximize profits, without realizing that the risk of rapid losses follows closely behind. Unfortunately, we don’t realize this until the moment the price moves slightly against our entry price and then we see what happens, yes we get liquidated.

This is why it’s crucial to understand how leverage works, it’s not just about focusing on trading strategies, risk management must be a priority. It’s better to use relatively low leverage than high leverage that consistently results in losses.

[Finestream]

Trading with leverage can make you rich, but it can wipe out your trading account and amplify your trading losses if not managed strictly. That's why getting rich quick with leverage trading has turned more speculative rather than a reliable wealth-building strategy.

However, no matter how often this kind of topic being talked in the forum, still its up for the traders to practice risk management in trading. They will not lose from leverage trading if they know how to execute it, but most likely taking leverage can only ruin the life of traders especially if they are trading with uncontrollable emotions.

[henmark]

When it is with high leverage and hoping that there can be a reversal for you to recover. I doubt it that you'll see a reversal when you'll be liquidated first.

You get it, this is the main problem of the traders. Getting liquidated and later the market may be reversed. But there are times there would be a reversal, thinking the market direction may change, but because of greed, you still left the position by not closing it after making enough profit from other positions opened, the market latter further going in the opposite direction again which is the chase of the money loss or even liquidation if you use high leverage. High leverage is the bad thing that traders need to stay away from, it is very bad.

Not the trader but this is how some feature or variations of trading works. Trader can still avoid the problem as long as they won't also deal with them. But I think something will be missing on me as a trader if I will trade In a very careful manner that I'm already like investing waiting for the market to shift when things go wrong. We are talking leverage or futures trade above but the other that you said there, is the normal spot trade only.

There may be greed there too but this is not worse as the other because there is no liquidation that takes here automatically. So there is still a chance for us to recover. High leverage is just another tool. It has a purpose and it can be good too for some that knows how to use it. I'd rather say that it was so risky to deal with than being bad. That sounds so negative though.

[Hamza2424]

You keep doing that until you run out of funds and now you have nothing more to add into your trade, but the market doesn't stop, the trend continues, and then you can do nothing other than praying and hoping that the market might start coming down. And, since you've been adding to your position, your liquidation will also be pretty close, because when you add more funds to an already existing futures trade, if it's an isolated one, then your entrance comes closer but so does the liquidation. So, you just keep praying and watching the market, and eventually, your trade gets liquidated.

So going against the trend is never a good idea.

Exactly, and this is the reality bro. Every trader has faced this situation and thinks they have found a unique technique, not knowing that every trader before them has already tried it. It is not a hidden strategy that we discovered, but a loophole that smart money also knows how to exploit haha.

So basically, when we keep adding more funds into a trade while it is going against us, we hope to make more once it starts following our direction again. But I did not mean reversing it in that way. I meant opening another trade in the same direction in which the market is currently moving.

Like if you shorted but the market is pumping, then open another long trade so you would at least be risking from one side but also making money from the other trade. That is called hedge trading, which is not possible on every exchange because Binance, as far as I remember, does not allow you to open both short and long positions on the same token simultaneously. Although I left futures trading a long time ago, bro.

[blockman]

When it is with high leverage and hoping that there can be a reversal for you to recover. I doubt it that you'll see a reversal when you'll be liquidated first.

You get it, this is the main problem of the traders. Getting liquidated and later the market may be reversed. But there are times there would be a reversal, thinking the market direction may change, but because of greed, you still left the position by not closing it after making enough profit from other positions opened, the market latter further going in the opposite direction again which is the chase of the money loss or even liquidation if you use high leverage. High leverage is the bad thing that traders need to stay away from, it is very bad.

When they have seen that they're already liquidated, they won't stop and instead will continue. But those who understands that it's already a bad scenario, they'll have to stop and forget about it. Dealing with how much loss they have and that's enough for them. I agree that high leverage is bad but we can't stop those who continue to deal with it because they think they'll make money and all they need is one big win for those high leverage they do. It's with their realization that slow process with spot and holding is pretty much better than that.

[Shinpako09]

Some newbie traders get greedy because of what they see or watch from others. They try to replicate it without realizing it takes time to get there. Also, futures trading is not for everyone. Not accepting from the very start that there’s no such thing as a 100% win rate is also a bad thing and will just lead to revenge trading, which eventually leads to destruction. Well, it’s really fun, especially when you actually hit it, but if you’re still a newbie, you’re better off sticking to spot trading first and slowly moving into leverage trading later on.

[MarjorieZimmermanGinger]

Most newbies enter trading thinking only about profit and the big mistake is that they invest a large amount of money right away. In this case, if the market goes in the opposite direction, there can be a big financial loss. In trading, it is more important to survive than to make a profit because the longer a trader survives, the more he can gradually earn a profit, which is better than using a large amount at the same time and making a big financial loss. Therefore, the aim should be to create continuity by protecting capital rather than making decisions based on profit. However, in many cases, it is not possible to limit their temptation, which is why they expect big profits. In addition, not everyone has the patience and experience to continue from controlled to continuous, which is why most of them end up in losses.

Wherever we are success requires a process and expecting to achieve success in a relatively short time is akin to gambling. Trading is not easy to execute because even small mistakes in opening a position can lead to losses. Without proper knowledge, traders will actually experience losses. Most people practice their trading skills using much smaller capital to avoid losing more money during the learning process. This also depends on how disciplined a person is, avoiding greed and always setting limits when entering market positions.

If they can't maintain patience and discipline, don't expect traders to persist in trading, as it's impossible to survive if they consistently experience losses. Trading expectations should be based on adjustments and if trading skills remain poor, it's important to evaluate. Experience will gradually teach us to be more careful in managing risk, as no one achieves instant success in trading everything requires a process.

[Out of mind]

In trading, using high leverage is not only highly profitable, but also has a high chance of loss and rapid destruction. New traders cannot always control their greed. When someone uses 10% leverage with $100, he will profit a lot when the market goes up, but when the market goes down, he will be liquidated very soon. Moreover, there are most traders who try to make a quick profit by using high leverage, but they lose their money there. That is why new traders should learn these things with the utmost importance because as high leverage gives profit, the possibility of loss is also high. To survive in the market for the long term, you must first learn risk management, as well as start without leverage or with very low leverage, only then can you avoid losses.

[Nheer]

Some newbie traders get greedy because of what they see or watch from others. They try to replicate it without realizing it takes time to get there. Also, futures trading is not for everyone. Not accepting from the very start that there’s no such thing as a 100% win rate is also a bad thing and will just lead to revenge trading, which eventually leads to destruction. Well, it’s really fun, especially when you actually hit it, but if you’re still a newbie, you’re better off sticking to spot trading first and slowly moving into leverage trading later on.

One can be inspired by what others have achieved through same trading they are doing but the wrongest mistakes some trader can make is rushing towards profits hoping to reach the stands of a professional traders. Many of this traders have been in the system for years and they have gain much and much knowledge and also much experience from the market so they can't compare themselves to them and try to be like them if we later end up in the wrong place which is definitely loss. Take the procedure step by step and enjoy the journey no rushing or chasing after profits.

[TheUltraElite]

I dont like leverage because it is not spot trading. I prefer spot trading and I recommend spot trading to every newbie who is coming to the market for the first time. I consider trading other than spot to be gambling and hence not profitable.

The people who have a background in stocks will already know about spot trading if not options and others. That same can be applied to the crypto market. Newbies have to observe the market for years before actually putting money in - from what I understood in crypto.

Once you do that you realize what points are good to buy and when to sell and also how the market cycles between bull and bear.

[shawonngp]

Some newbie traders get greedy because of what they see or watch from others. They try to replicate it without realizing it takes time to get there. Also, futures trading is not for everyone. Not accepting from the very start that there’s no such thing as a 100% win rate is also a bad thing and will just lead to revenge trading, which eventually leads to destruction. Well, it’s really fun, especially when you actually hit it, but if you’re still a newbie, you’re better off sticking to spot trading first and slowly moving into leverage trading later on.

Because most newbie traders think trading is an easy way to make money, and they can make huge profits, and they will become rich overnight. Even though many of them start trading with a large amount in the beginning, since they don't have trading knowledge, they lose a lot in the beginning. Newbie traders consider it gambling, so they deposit a lot in trade without any basic knowledge. Future trading is very risky for even expert traders; it's not for newbie traders, because it is much more difficult, as you need extensive knowledge in trading. Whereas new traders should not do spot trading without basic knowledge.

[LastKiss]

~snip~

Have you not experienced it before?

I think this happens quite often to traders because they're not set their stop loss on their trades and I’ve seen it frequently with traders who post their setups on social media but end up getting round tripped, altough they're not liquidated but their trades got stopped. It doesn’t only happen to newbie only but experienced traders can face this situation too. This is why it’s really important to use a stop loss especially when trading futures.

For that reason when I trade with leverage, once I achieved 1R on my trade, I will set my stop loss to break even to avoid being round tripped on my own trade another way to prevent getting easily liquidated due to volatility is to use low leverage. The last time I used low leverage, I only got liquidated on October 10 2025.

[jcojci]

I experienced many times but what I can say if I am tempting to profit big using high leverages

But I admit that trading can makes me lose control many times especially if the line still go up or showing the sign that will increase. That can makes me using high leverage and waiting my entry fills.

Sometime gives me profit but many times I lost. It is okay and normal doing that but we can't let that happens every time we trade. We should have limit and know how big the leverage we will use.

[Fivestar4everMVP]

It is still about the regret of using high leverage in a way your money will be liquidated, but later the market will reverse and get to the price you opened the position and the price of the coin will go more in your favour if not that your trading fund has been liquidated, you are supposed to make profit.

This is just to have fun today. I hope many newbie traders can learn from this, to know how dangerous leverage can be.

It happened to me many times in the past.

Have you not experienced it before?

I do not think any trader who have actually traded for real can deny that this has not happened to them before, because this is a very common phenomenon in trading and even in investing.

For investing, there have been many times i will prepare to buy a crypto asset with lumbsum and the price will be rising, and I will feel like to wait for the price to drop abit, but unfortunately, the price will keep rising and moments later, fomo will cause me to buy the crypto at its risen price, only for me to see that immediately after buying or minutes or hours later, the price will come crashing down even far below the price it were when I began making arrangements to buy.

But this experience in investing is better because you still get to hold the crypto until price starts rising again.
But for trading, it's so very painful because you've been liquidated, and your money is gone before the price started going in your direction, and the only way to continue is to raise another money, this is one of my worst experiences in trading.

[Inwestour]

I experienced many times but what I can say if I am tempting to profit big using high leverages

But I admit that trading can makes me lose control many times especially if the line still go up or showing the sign that will increase. That can makes me using high leverage and waiting my entry fills.

Sometime gives me profit but many times I lost. It is okay and normal doing that but we can't let that happens every time we trade. We should have limit and know how big the leverage we will use.

Yes, high leverage can significantly increase the potential for profit, but that does not mean you will actually be able to keep those profits, because when trading with high leverage, the market can wipe you out very quickly. And especially when we are talking about beginners who have not yet lost money using leverage, and even more so if they get a little lucky at the beginning, they often start opening larger positions afterward, and then the disappointment becomes much greater.