Quote from: Silberman on October 28, 2021, 09:56:55 PM

Quote from: abrahamtownsend on October 27, 2021, 03:56:39 AM

Here are the pros I could sum up:

. First of course is the bigger market exposure. It seems like the right time to cash in on the crypto market, and for many beginners with limited capital, leverage seems to be the only option.
. Lesser risk when you set tight stops and trade smaller amounts. You don’t risk all of your capital and as you gain experience, learn how to navigate the leveraged trading market.
The biggest disadvantage obviously is the extreme volatility of the market which can magnify losses as much as it can increase profits through leverage.
How many of you here are using leverage to trade crypto, and how much, and through which broker? Let’s bring to light the many unknown aspects of crypto trading, besides what is known - that you screw things up when you don’t understand technical analysis and blindly enter and exit trades.

Just a reminder just because you set a stop loss at a certain price it does not mean that it is going to be executed at exactly the price you specified, there is something called slippage which is the difference between the price you expect to sell and the actual price at which you sell, this means that in a moment of great volatility you could end up selling for a price way lower than what you thought, which means that just when you needed it the most the protection that you thought you had with the stop loss will not be there.

We are ignoring the fact that those with high capital don't need to increase their position size. They are already getting high returns. Also they need not worry about growing their account quickly. Their focus is to protect what they have at the same time trying to earn whatever they can.