Quote from: lixer on October 29, 2021, 12:58:17 PM

Quote from: Wind_FURY on October 29, 2021, 12:42:19 PM

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

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.

Beginners + leverage + limited = Margin Calls/Liquidations.

Plus it’s not the only option. You can find a job, save a portion of your salary in Bitcoin. I believe you would have a higher probability of long term success with that than gambing with leverage. Think where you will be 10 years from now if you keep gambling with leverage.

Yeah, OP is trying to misguide new traders because theoretically leverage markets might look like an advantage but when getting into market then high volatility might swallow all their capital in matter of one or two sessions. Basically, limited funds cannot be a constrain for considering about leverage market.

Leveraged market might suit the traders who are able to accurately predict the market directions in short term. Such traders already might have big capital and still go for availing leverage to maximize their profit levels when trading on multiple assets.

OP:
When you are having small capital then going for leverage with all 100% of your capital might lead to disasters on a small correction on your expected market direction. Only when you gain experiences then you may start think about leverage trading.

I agree and I’m not at all trying to misguide anyone. It’s true that newbies with small capitals are the ones who mostly use leverage to quickly grow their account. A small amount of leverage can be beneficial if you are following sound analysis to predict the price movements. However, if someone is just gambling around, I won’t suggest them the same.