Post
Topic
Board Trading Discussion
Re: Trading with leverage
by
Oshosondy
on 28/10/2021, 07:25:05 UTC
Trading with leverage is a very dangerous thing for a beginner, especially for a gambler, because if you try it once, you can't pull everything off.
As a beginner, I was losing my deposits, trading with a leverage of x10, x20, but I realized that it was necessary to trade with a maximum of x5, and it would be hard to stop.
Trading with leverage is very risky, but why using gambling? Anyone that is making use trading as gambling will not even gain but lose and lost more and more if not having the knowledge and experience about trading, even using no leverage is not meaning someone can not still lose.

5x leverage is not bad at all, but it is very possible someone can lose he whole money during volatile market if the price go against the position taken by the trader.

I think it doesn't matter when you have leverage or not as long as you know what it's for and how it can affect your trading journey ahead of you. Most of the time, people don't understand and see how important it is to consider leverage and manage it correctly. It's almost always going to be abused at first, and you will get liquidated. It's crucial to know your liquidation limit with your capital and always understand that it's always going to be like that.

If you don't learn it, you can gamble in casinos instead of the trading exchange. It depends on the person on how it's going to be used.
Trading and gambling are two different things entirely, I am not saying someone can not do both together or choose the one he likes,. It they are different. I use the money I can afford to gamble, but I still out more to trading because gambling is riskier.

It is good to manage leverage, the main cause of liquidation is the leverage used, many people are losing money and  tired all because they are using leverage or using too much leverage. I started to trade future with 125x, I later know that even using 10x is too much. There is nothing better than using 2x or not to leverage at all.