Hope you did not use high leverage?

[Oshosondy]

Hope you did not use high leverage during this fall that many of us predicted?

I am referring to those that have gone on long position.

Or you know that you should go short? But using high leverage is not good, you can just be lucky this time.

Low leverage can still encourage averaging, but martingale is very bad. Starting a trade with 0.2x leverage is very good.

I also hope people know about perpetual and future trading? There are long term position holders.

I hope people understand the reason for this thread.

[masulum]

The BTC drop from 74K to 61K in 4 days is enough to prove the brutality of the market towards high leverage positions. Just remember, if you have limited money, forcing yourself to use high leverage is not a shortcut to get rich, but a ticket to bankruptcy. IMO, the 60K-63K area is a critical zone. if this breaks down, it is very possible the next drop target will reach 48K.

So, the smallest fluctuation will easily wipe out small margins through liquidation. Even if your prediction is correct, a temporary price reversal can still trigger liquidation. Don't let greed blind your risk management. It is better to hold your remaining money and use the spot market for DCA which is more tolerable, but this is not financial advice too, because even spot market is highly volatile.

[Faisal2202]

I have failed to understand what 0.2x leverage means here. Does that mean using 20% of the portfolio or what because as far as I understand leverage means borrowing funds from the exchange according to the leverage. Like 1x means your exact money with no borrowing, but what can 0.2x leverage mean here OP?

I have read some of your other posts and failed to understand them and thought maybe you were talking about the capital percentage like a 20% portion. Anyway with less leverage we can decrease the liquidation price, and as a matter of fact I stopped using leverage a long time ago due to the fear of liquidation and because it is not good for me haha.

[Alphakilo]

Hope you did not use high leverage during this fall that many of us predicted?

I am referring to those that have gone on long position.

Or you know that you should go short? But using high leverage is not good, you can just be lucky this time.

Low leverage can still encourage averaging, but martingale is very bad. Starting a trade with 0.2x leverage is very good.

I also hope people know about perpetual and future trading? There are long term position holders.

I hope people understand the reason for this thread.

To use Martingale strategy where a trader gets to double their their position size after a loss under the assumption that a big win will help recover all the losses so far is a bad idea right now and it's more like gambling where chasing losses is evident. It is an unwise strategy that could bankrupt ones account and that's why this post from my perspective is talking more about employing risk management practices to remain consistent and financially secure.
A good trader in these times should understand that knowledge and applications of liquidation mechanics, funding rates and margin maintenance is the best play to stay profitable and financially secure instead of being victims of ongoing liquidation in the market.

[terrific]

I think even if you make a lot of these threads giving reminder to them that they should leverage low.
They are not going to stop doing that. And even they're already liquidated for so many times, that won't be enough for them to stay low.
Because high leverage is addictive for how it's making someone a lot of money when they win their trades.
I have learnt the lesson behind it and that's why I am avoiding to do high leverage. But no one can stop them if they want to continue it.

[sergiorus]

I have failed to understand what 0.2x leverage means here. Does that mean using 20% of the portfolio or what because as far as I understand leverage means borrowing funds from the exchange according to the leverage. Like 1x means your exact money with no borrowing, but what can 0.2x leverage mean here OP?

I have read some of your other posts and failed to understand them and thought maybe you were talking about the capital percentage like a 20% portion. Anyway with less leverage we can decrease the liquidation price, and as a matter of fact I stopped using leverage a long time ago due to the fear of liquidation and because it is not good for me haha.

I'm pretty sure they meant 1.2x leverage which is a good safe approach if you want to add more risk.
I prefer to do it via lending apps though, this way you don't pay funding fee but instead you pay interest fee which is much lower.

If someone is not familiar with this scheme: imagine you hold $1000 worth of a coin. If you deposit it in a lending app (or "Loan" section on centralised exchanges) and borrow 200 USDT, then you buy the same coin with it - you now hold $1200 worth of a coin (of which $1000 is locked as collateral but you still have that exposure) but you only had $1000 worth of it to begin with.  This is your 1.2x leverage.

However, even here there's some chance of liquidation and on 10/10/2025 many such positions were actually wiped.

[AVE5]

I think even if you make a lot of these threads giving reminder to them that they should leverage low.
They are not going to stop doing that. And even they're already liquidated for so many times, that won't be enough for them to stay low.
Because high leverage is addictive for how it's making someone a lot of money when they win their trades.
I have learnt the lesson behind it and that's why I am avoiding to do high leverage. But no one can stop them if they want to continue it.

But in a natural sense is it possible for someone to be addictive to high leverage trading that even when they finds it hard to profit from it they would keep standing on the strategy of the high leverage? I'm still yet to figure the urge for traders who actually falls addicted to trading like those in gambling. I don't even want to believe it that trading is gambling except for their common relativity of unpredictability market outcome determinants.
Well, some greedy ones who're after chasing high profits wouldn't mind the risks until they blows off their account. Moreover the current market behaviour is very scary to risk too much now which is why some traders are taking some break now because the choice of trading with very low leverage will fetch very little profits now and the possibilities to win still remains high. Loosing on the high leverage will even opt you out too soon.
High leverage trading is just so discouraging now.

[terrific]

I think even if you make a lot of these threads giving reminder to them that they should leverage low.
They are not going to stop doing that. And even they're already liquidated for so many times, that won't be enough for them to stay low.
Because high leverage is addictive for how it's making someone a lot of money when they win their trades.
I have learnt the lesson behind it and that's why I am avoiding to do high leverage. But no one can stop them if they want to continue it.

But in a natural sense is it possible for someone to be addictive to high leverage trading that even when they finds it hard to profit from it they would keep standing on the strategy of the high leverage? I'm still yet to figure the urge for traders who actually falls addicted to trading like those in gambling. I don't even want to believe it that trading is gambling except for their common relativity of unpredictability market outcome determinants.

Yes, it's the same as the gamblers who kept on losing and yet they continue to gamble.
There's the common things with gambling and trading but with this high leverage that they keep on doing, it's just so unstoppable for them.
I think even if they want to stop, they're having a hard time and they will only realize to stop when it's too late.

Well, some greedy ones who're after chasing high profits wouldn't mind the risks until they blows off their account. Moreover the current market behaviour is very scary to risk too much now which is why some traders are taking some break now because the choice of trading with very low leverage will fetch very little profits now and the possibilities to win still remains high. Loosing on the high leverage will even opt you out too soon.
High leverage trading is just so discouraging now.

It is.
Although there might be some of those who keeps on doing it and they're profitable with it, they won't stop too.
But we know what's better for us and how we can keep up with that to avoid losing too big with these trades.

[logfiles]

IMO, the 60K-63K area is a critical zone. if this breaks down, it is very possible the next drop target will reach 48K.

Few weeks ago most people were predicting that Bitcoin would all the way towards $100K just because there was that rise past $80K. I am one of the people who thought otherwise 
This is how a classic bear market looks like. We might not see the 40's but $60K to $50k zone is very possible.

Interesting market times ahead.

[BitMaxz]

Well, since I have a small capital, I stick with 10x leverage; 2% of the total capital is my margin while sticking using SL.
In the daily time frame, since I already saw the possible scenario that the price would rebound from $82k as a retracement level for the Fibonacci sequence, I went short with only 1:2RR I didn't stop trailing this time because I was also expecting $69k to $70k to be respected, but it failed.
I don't think if this is luck, but having some skills to analyze helps me to predict the possible scenario.
I only seek retracements, but I didn't enter at $82k. I just analyze that this is the retracement level for the daily time frame. I only trade on the 1h time frame. Once the 200 EMA breaks, that is a sign for bearish for me; my retracement level where I enter is $77k.
It looks like you end up saying that trading is gambling because you added luck as one of the reasons why some traders got winning trades.

Low leverage can still encourage averaging, but martingale is very bad. Starting a trade with 0.2x leverage is very good.

Martingale is very bad; however, I saw successful traders on this, but I still can't figure out the psychology behind their strategy using martingale. I saw traders use this martingale on the countertrend system. It's too risky, and I think it only works for those who have a big capital.

The best part of a countertrend strategy is that even with a slight move, they can trade breakeven or make a profit on slight movements.

I am actually planning to try this countertrend strategy and open a sub-account for this with small capital. It looks similar to Waka Waka EA(Automated) but this one is manual.

Someone discuss this on the trading forum. I saw some traders who were successful making a profit with this strategy while applying the martingale; pretty bad. It looks riskier to me; I don't have a huge capital to do this. Based on my understanding, they have a grid or level where they are going to double their entry to avoid blowing their capital immediately. I'm still figuring out the psychology behind this and how they apply the risk management here. I saw a video of this as what others illustrate; it looks like a series of SL above the higher highs or lower lows, which their limit, I guess, is when they keep entering countertrend.

Honestly, I don't trade against the trend; that is one of my strict rules, but other traders do this, and it appears to work for them on forex. We know this one is much more stable than Bitcoin, so I was thinking this might not work. However, without trying it, we do not know if this will work or not. At least even a paper money to test this out will give us clarification if this strategy will work or not.

[EarnOnVictor]

Hope you did not use high leverage during this fall that many of us predicted?

I can only imagine how the trader with a high leverage plus no proper account management would have been roasted by the market by now. Trading with the high leverage is not necessarily bad, but the absence of proper planning in case the decision goes south.

Or you know that you should go short? But using high leverage is not good, you can just be lucky this time.

True! But I always hope I used some insanely high leverage in situations like this.

[joniboini]

I can't remember the last time I used leverage. I never went higher than 10x, if I recall it correctly. Even 2x or higher feels risky to me. I guess that's how it is if you have low capital and limited risk tolerance. I can't imagine why someone would go all the way to tolerate more risk without having the necessary capital for that. I guess greed is one of the reason. But if they're in the market long enough they should've been burned one or twice because of that, at least I expected so.

[The Cryptovator]

I am safe even during this dump since I haven't been doing future trading. The market seems to have very bad conditions right now, I claim to be safe because I am a holder and spot trader. I know the market will recover soon, and my holding will recover too as well. But if someone lost in leveraged trading during this bear market, their funds won't be recovered anyway. I have noticed a big amount of longs have been liquidated. Means a lot of people lost their funds.

I usually don't prefer futures trading; I can't accept this kind of loss. For newbies, leverage trading is more dangerous. When they lose a big amount of funds, then they might lose interest in cryptocurrency and Bitcoin. Those who are highly skilled and experienced and can afford to lose might do leverage trading.

[OsaiEmma]

Hope you did not use high leverage during this fall that many of us predicted?

I am referring to those that have gone on long position.

Or you know that you should go short? But using high leverage is not good, you can just be lucky this time.

Low leverage can still encourage averaging, but martingale is very bad. Starting a trade with 0.2x leverage is very good.

I also hope people know about perpetual and future trading? There are long term position holders.

I hope people understand the reason for this thread.

I'm not gonna lie, I missed the bear market trade. I was holding a long position when we had the first LH(lower high). I actually thought the market will recover, to my greatest surprise, it plummeted back downward. Anyways, I'm gonna use a pretty high leverage, Maybe 5 - 6x in the coming bull run, I ain't gonna lax like before. I'm a risk taker 😁

[Karl_3000]

I can only imagine how the trader with a high leverage plus no proper account management would have been roasted by the market by now. Trading with the high leverage is not necessarily bad, but the absence of proper planning in case the decision goes south.

I told people that trading is not good, the best is to hold. Almost a billion dollars was liquidated recently.

I'm not gonna lie, I missed the bear market trade. I was holding a long position when we had the first LH(lower high). I actually thought the market will recover, to my greatest surprise, it plummeted back downward. Anyways, I'm gonna use a pretty high leverage, Maybe 5 - 6x in the coming bull run, I ain't gonna lax like before. I'm a risk taker 😁

5 to 6x leverage is not high leverage to me but increasing it is where high leverage begin. There are people that are using 10, 25, 50, 100, 200, 500 leverage, these are the high leverage that some people use. These people are not traders but they are thinking they are traders, not knowing they are gambers.

[Rruchi man]

Or you know that you should go short? But using high leverage is not good, you can just be lucky this time.

The thing about being lucky one time trading in an unsafe way using high leverage is that there will be the likelihood of you repeating it, trying it another day with the hopes that you will be lucky again.

You will be lucky if you are unlucky quickly and reminded through loss and failure that you should not be trading in such a way and manner.

You will be unlucky if this wrong trading pattern of using high leverage works again for you the second time, because then it is only pulling you in to lead you to a bigger failure and loss later at a time you least expect it to.

[Antotena]

I think even if you make a lot of these threads giving reminder to them that they should leverage low.
They are not going to stop doing that. And even they're already liquidated for so many times, that won't be enough for them to stay low.
Because high leverage is addictive for how it's making someone a lot of money when they win their trades.
I have learnt the lesson behind it and that's why I am avoiding to do high leverage. But no one can stop them if they want to continue it.

OP need to check Binance, that's when he will know that people love leverage so much that they can't do without it and basically that's the only thing they know with trading. There are various opportunities in margin borrow ND lend since the leverage is always small compare to futures but one trader will love to trade with high leverage because they saw everyone buying and that person you are following their trade may not show you what they trade.

When Bitcoin top $80k last week, even me I thought we have arrived and finally what's stopping us from getting to the $100k is over but here we are rotating between our previous dump. It's funny how we turn bullish and then began to be scared of the market like we never have interest in it before but I guess the fall of the stock market is among why the Bitcoin fell down to another level. We may see another lows as it seems because this buy isn't having showing confidence.

[Bitcoin_people]

Hope you did not use high leverage during this fall that many of us predicted?

I am referring to those that have gone on long position.

Or you know that you should go short? But using high leverage is not good, you can just be lucky this time.

Low leverage can still encourage averaging, but martingale is very bad. Starting a trade with 0.2x leverage is very good.

I also hope people know about perpetual and future trading? There are long term position holders.

I hope people understand the reason for this thread.

Trading with high leverage is always risky, so it is better to use less leverage when trading futures. I hope that during this market downturn, experienced traders will never use excessive leverage when they have taken long positions. And for those who have taken short positions, it is risky because using high leverage can lead to liquidation even with small price fluctuations.
We know that trading with low leverage always helps in controlling risk, and for those who use the Martingale strategy, it can be even more risky, which can lead to big losses.
In comparison, I think using 0.2x effective leverage is less risky when trading and it can be safer. So controlling risk is always one of the most important things in trading, that is why it is best to use low leverage when trading futures and perpetuals.

[MArsland]

IMO, the 60K-63K area is a critical zone. if this breaks down, it is very possible the next drop target will reach 48K.

Few weeks ago most people were predicting that Bitcoin would all the way towards $100K just because there was that rise past $80K. I am one of the people who thought otherwise 
This is how a classic bear market looks like. We might not see the 40's but $60K to $50k zone is very possible.

Interesting market times ahead.

There is one friend of mine who until now has refused to heed the warning that I told him long ago to withdraw from the market. Unfortunately he still insists on staying positive and hoping for a bullish market, which is ridiculous when you look at his portfolio which is minus more than $20K (a huge amount for me when you look at it). Not only in using high leverage in one asset but he did it in several altcoins whose potential was considered finished or destroyed.
If bitcoin touches 55K-50K, it is certain that my friend has raised his hand.

[LogitechMouse]

The BTC drop from 74K to 61K in 4 days is enough to prove the brutality of the market towards high leverage positions. Just remember, if you have limited money, forcing yourself to use high leverage is not a shortcut to get rich, but a ticket to bankruptcy. IMO, the 60K-63K area is a critical zone. if this breaks down, it is very possible the next drop target will reach 48K.

So, the smallest fluctuation will easily wipe out small margins through liquidation. Even if your prediction is correct, a temporary price reversal can still trigger liquidation. Don't let greed blind your risk management. It is better to hold your remaining money and use the spot market for DCA which is more tolerable, but this is not financial advice too, because even spot market is highly volatile.

It will only brutal to those who are still optimistic that they think that the market will recover after what happened.
The market is only brutal for those who are against the trend.
The market is only brutal for those who entered long position.

If you entered a short position during that time, depending on how high your leverage is, you will still end up making money.  Anyway, this is why we always say that "the trend is your friend", and it's because it could give you huge profits especially if you're into futures trading. $60,000 is acting as a psychological support right now. Like what I said, next week will be interesting because it's either we could see the market recovering, or we could see the market bleed even more to the lows of $50,000. I like the 2nd one to happen of course, but who knows.

If you can focus on holding then do it. If you can't trade then just focus on DCA. Trading is very brutal to all kinds of people.