Newbie trading experience

[liasbaa]

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 was wary of using leverage from the beginning when it came to trading. I had seen many traders lose money so I preferred to trade with small amounts of funds. As is the case with spot trading, which is the tendency to sell when you get a small profit. I became familiar with the risks of using high leverage when I saw experienced traders lose a lot of money like a gambler.

Some traders who trade with discipline can set a limited liquidation using leverage but it is not much different from spot trading but for futures trading this method would be the right consideration for those who are skilled in managing their funds.

[joeperry]

Have you not experienced it before?

Definitely, and it happened to me a lot. The hardest thing about that is when it's first on profit then after a few minutes you will get liquidated but I already learned my lesson, I only do a fix amount of position (isolated) and it's only around $20 with a little bit high leverage and for me, it works. What I usually do is I do take my open position, take profit and stop loss and if my stop loss is at the same (or almost the same) as my liquidation price, then my leverage is right but if it didn't reach it then I lower my leverage until it's almost the same as my stop loss and I always do a 1:2 or 1:3 setups to make sure that in the long run, I will be profitable.

[Lannakosa]

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 think every beginner goes through this, but some people only need a few small mistakes to realize that leverage is too complicated a tool in trading to use without proper experience and knowledge. Every beginner will want to try trading with leverage, but I would advise doing it only with small amounts of money that you can afford to lose. I would also recommend stopping these experiments with leverage after a few unsuccessful attempts.

[Arenga pinnata]

Personally, I don’t like the futures market. Because, well, using leverage, even though it seems to offer the hope of making a profit quickly, also carries the risk of incurring significant losses in a short amount of time. I only try to enter the futures market when the timing is just right. But honestly, I’m not very skilled at trading in the futures market. My analysis in the spot market is sometimes quite accurate. But when I apply it to the futures market, things tend to go badly. Even though I sometimes use only a small amount of leverage, the tension and mental pressure in the futures market are what I struggle with the most.

[_act_]

Some traders who trade with discipline can set a limited liquidation using leverage but it is not much different from spot trading but for futures trading this method would be the right consideration for those who are skilled in managing their funds.

Many of them will begin to trade futures, they will start with the thinking that they can use $500 to trade and use it for position of up to $50000. After losses, they will change their mentality about trading. But the problem is that they may think of not doing the mistake again, but continue to do it. Many of them will later have to stop trading after the losses continue or they become very addicted. Many people on this forum do not know that trading addiction is real.

[Jegileman]

Personally, I don’t like the futures market. Because, well, using leverage, even though it seems to offer the hope of making a profit quickly, also carries the risk of incurring significant losses in a short amount of time. I only try to enter the futures market when the timing is just right. But honestly, I’m not very skilled at trading in the futures market. My analysis in the spot market is sometimes quite accurate. But when I apply it to the futures market, things tend to go badly. Even though I sometimes use only a small amount of leverage, the tension and mental pressure in the futures market are what I struggle with the most.

Just stick to what works for you best, there is no pressure there and you’re in no competition with anyone on who gets to win in the end. It is just you against the market with your capital. If spot market trading works for you best and you wanted to also try out futures trading and the result was not encouraging, it is better you let it be and focus on your spot trading. The ultimate goal is to make money and once you’re making that money, there is no need for you to want to try other means if they don’t work for you, small profits will naturally turn big one with consistent profit in the long run.

[taufik123]

Many of them will begin to trade futures, they will start with the thinking that they can use $500 to trade and use it for position of up to $50000. After losses, they will change their mentality about trading. But the problem is that they may think of not doing the mistake again, but continue to do it. Many of them will later have to stop trading after the losses continue or they become very addicted. Many people on this forum do not know that trading addiction is real.

Trading addiction is very real, in fact it makes someone addicted do anything to be able to get into the market again after a big loss.
I may have been someone who was a beginner who traded in retaliation for losing around $200 on futures trading.
Although the main goal is for profit, it will ultimately try to recoup the loss, but more and more losses occur.

It is necessary to stop to breathe and then think that the effort made with those emotions will not work out.
Having to stop and think about what is the best strategy to recoup those losses, basic trading knowledge and a strong mental mind is required.

And that trading experience will be needed for future development, it will be a reminder and direct learning so as not to get caught up in the same mistakes.

[Emitdama]

I do not trade futures contracts and I do not use leverage because I believe that it is like gambling, it is very risky and depends more on luck than on study and analysis. No matter how expert you are in analysis, anything can happen that changes the direction of the market and you will be exposed to double loss.

I always believe that they are still like trading where analysis can also matter but maybe only more risky than a regular spot trade due to the said leverage feature and quick liquidations. But yeah, after all, even a pro all around trader are not a god that has a 100 percent winning rate. So acceptance of a loss should always be the first that we must have in mind and next maybe having a spare capital for such an event.   

But despite that, I know this feeling because it sometimes happens even in spot trading where I buy a coin and it starts to go down, so I sell it immediately to avoid further losses but after that the trend suddenly changes and the coin goes up significantly and I wish I had waited a little longer.

Yeah, both share the same market but they only have different rules. Spot trading is less strict. This is why some don't use a stop loss on it due to what you said there that market can shift immediately (so as the tide can turn for them traders). It also depend on the coin though. If you are dealing with foreign coins, then you are doing a good job there already of cutting a loss.