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.

[Maslate]

I believe significant number of newbies have experienced trading with leverage, and eventually learned from it. Taking leverage is not a required step for learning to trade, as much as it can never be reliable enough to turn small amount of capital into large profits.

However, experience is the best teacher in trading. Focus on learning risk-management and strategy first before going on high-risk leveraging. Leverage amplifies both gains and losses, prioritize spot trading instead.

[pusaka]

This should be done by all traders, we must be able to adjust the capital we carry with the leverage we will apply. Do not let just because thinking about profits, we become ignorant of things like this. It will definitely be a very deep regret when we have been liquidated but the market turns around, we will definitely regret and think “if I don't use high leverage, maybe now I'm profitable”. But regret is useless if liquidation has already happened, all we can do is make it a lesson to be even wiser in adjusting our trading.

Experiences like this are not just one or two people sharing it, so it should be for beginners they can learn from the experiences experienced by others.

[Bitcoin_people]

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?

Newbies often trade using high leverage so that they can make quick profits and get rich quick. When a person plans to trade using high leverage, he will be ready to lose all his money. New traders always look for get rich quick schemes due to which they often face losses and lose their money because they become emotional and cannot control themselves. That is why in trading, first of all, new users should learn how to use leverage well. When a new trader becomes knowledgeable enough and gains skills in addition to his general knowledge towards training, then he should enter trading. These things are most important for beginners. In trading, I think that since beginners are greedy, they should be educated well in advance.

[Big Dirams]

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?

Newbies often trade using high leverage so that they can make quick profits and get rich quick. When a person plans to trade using high leverage, he will be ready to lose all his money. New traders always look for get rich quick schemes due to which they often face losses and lose their money because they become emotional and cannot control themselves. That is why in trading, first of all, new users should learn how to use leverage well. When a new trader becomes knowledgeable enough and gains skills in addition to his general knowledge towards training, then he should enter trading. These things are most important for beginners. In trading, I think that since beginners are greedy, they should be educated well in advance.

New trader shouldn’t have the mindset of making quick money from the market if not the outcome will be a regrets. New trader should focus on building their knowledge and understanding of the market, finding and coming out with reliable strategies that will suit them in the journey then later on the profits will fall in place because the knowledge is quite sufficient and we can easily analyze the market and come up with positive outcomes that will build our portfolio.
 But when profits or making quick money is put into consideration during our first phase of the trading then the journey wouldn’t last that much because no knowledge at all and without knowledge in trading it just like we going to farm without farm tools.

[Awaklara]

Most traders have certainly experienced being liquidated due to the use of leverage. At the beginning of my trading, I only traded spot with a fairly long duration. An interest in futures trading caused many losses when I was learning at first. The more I was interested in leveraged trading, the more I spent time and money. Trading with leverage is not for beginners. We have to know the limits of how far we can try with our abilities and skills. But no experience is wasted when we are willing to learn from everything.

[yhiaali3]

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.

Yes that's right. For me, I don't use a stop loss order or I rarely use it. The good thing about spot trading is that you can hold onto a coin whose price is falling in the long term until it rises. You can also use DCA for a coin where you buy whenever its price falls.

Unlike futures where your position can be liquidated quickly without you having a choice.

[The Cryptovator]

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.

Have you not experienced it before?

To be honest I am not a good trader; rather, I claim myself as a holder. Because most of the time I like to take profits from the holding. So even I am not involved with leverage trading; sometimes I do only spot trading. If the coin price I bought dumped, then I consider it my holding and move it to my hardware wallet to secure my funds.

For newbies I never preferred leverage trading; it's probably for pro traders. I have seen a couple of people who lost a lot from leverage trading. So honestly I dare to involve myself in leverage trading. Because even if the coin price recovers its price and your funds are liquidated, then you aren't going to get anything. No newbies should try it anyway.

[nara1892]

Opening a trade with high leverage and then it turns out that the price direction is not in accordance with your prediction which makes you bankrupt and also turns out that the price returns to the point where you opened the trade is a painful situation, the market just makes you lose money and then returns to normal again, honestly I have experienced such a situation and it was painful, from here I learned that trading with an amount that I am not ready to lose can really damage my mental and psychological side besides making me bankrupt, and therefore now I no longer dare to trade with high leverage.

[Faisal2202]

It happened to me many times in the past.

Have you not experienced it before?

Yes, when I used to trade in futures, it happened to me. I entered a trade and made a loss because the moment I took the entry, it started to dump, and I panicked but did nothing because I had already opened the trade. Then I woke up a day later haha, and I was already liquidated. Anyway, I panicked then, but I opened another trade and made profit, so the journey was never easy. Especially at the start, it is very difficult to understand what we are doing wrong.

But with time I understood that the manipulation factor is real and that the smart money is really doing something fishy because I was always getting liquidated. So the reason was simple, the methods I was using were too obvious for them to predict and make us liquidate. So I started to disobey them haha, sounds crazy, but it worked for some time. Then I left futures for my own good.

[justdimin]

Most traders have certainly experienced being liquidated due to the use of leverage. At the beginning of my trading, I only traded spot with a fairly long duration. An interest in futures trading caused many losses when I was learning at first. The more I was interested in leveraged trading, the more I spent time and money. Trading with leverage is not for beginners. We have to know the limits of how far we can try with our abilities and skills. But no experience is wasted when we are willing to learn from everything.

I would say that is the gateway ticket price to get into leverage trading. When you are leverage trading, nobody starts with pure profit, everyone loses their money at first but then gets better and better with time of course. Some do not even get better later on, and just quit and stop.

But the ones who get better, the ones who are currently great, all started with a loss at the first times because you have to get liquidated and learn to get greater at it eventually. This is true at any skill in the world, nobody starts playing the violin and play Beethoven, they do it with bad tunes and terrible skills, but with more and more mistakes, they get better eventually and learn to be a lot better with time.

[Asiska02]

This is relatable and we can’t take away the fact that trading really with much emotions usually leads to that also. Many newbie traders come with the mindset of getting rich quick and understanding how using high leverage can actually give you fast returns when the trade goes in your way, they risk everything and hope that the market goes in their direction. High leverage is not the best way to trade, it always end up in big losses over and over again. Slow and steady progress is the best, you should not want to try to miss some vital process in trading because when you do, you’ll come back and pay big time for them even if you succeed the first time.