⭐ Merited by Unbunplease (1)
I've been trading with btc for a while now with 4x leverage and without setting stop loss. But so far, I've been making profit. Although, I still have plan to reduce to leverage to 2x with time.
Due to current market, I've not been selling but buy. I wait for btc to reach a specific resistance price and then when the price come down, I buy and set take profit to almost the current resistance price.
The only time I set stop loss is when the btc price exceed my order price. So i wont be scared or the price going back and also there won't be chance for lose anymore.
I found that this idea has been working well for me so far . And its a good way to trade for me as I've seen so far.
but I feel like posting about it here to see other people opinion and more experienced traders opinion.
I will really appreciate your opinions and what you think will be better or any better suggestion.
Due to current market, I've not been selling but buy. I wait for btc to reach a specific resistance price and then when the price come down, I buy and set take profit to almost the current resistance price.
The only time I set stop loss is when the btc price exceed my order price. So i wont be scared or the price going back and also there won't be chance for lose anymore.
I found that this idea has been working well for me so far . And its a good way to trade for me as I've seen so far.
but I feel like posting about it here to see other people opinion and more experienced traders opinion.
I will really appreciate your opinions and what you think will be better or any better suggestion.
When you trade with large leverage, with very large leverage, the stop loss often helps you ... drain the deposit even faster.
Especially often I remember the main mistakes when setting a stop loss when using a large leverage. Stop loss is placed exactly in front of the liquidation line.
As a rule, in such trading it is better not to place stops, and in general it is better not to place such shoulders. If you still want to use risk management and place stops, then you need to use the position averaging technique. When you still have funds on your deposit to secure your temporary losses. Although some manage to enter all the money at once with huge leverage and without stop loss. Pure gambling.
With such leverage as OP, 2-4x, stops will not hurt, I myself trade with 3x and set a drawdown of no more than 20%, but more often I use position averaging.
