What do you think about leverage trading?

[Anonymous No.26381741]

Out of morbid curiosity, I tried leverage day trading last night (with a relatively small amount of capital) and got rekt. It seems incredibly risky, but I think there's also potential for huge upside. It's probably best to use it for short time periods during happenings ("omg [shitcoin] delisting!!!" "[shitcoin] just partnered with [big company]!" etc.) to profit off of emotional market movement, but maybe it's not worth using at all. What are your experiences with leverage trading/recommendations?

[Anonymous No.26381794]

No regulations, so if the exchanges see an opportunity to liquidate the fuck out of everyone at once, they can and have done so

[Anonymous No.26381926]

>>26381794
You mean like with whale dumps/scamwicks?

[Anonymous No.26381995]

>>26381926
I think they just dumped all of their own shit last time this happened

[Anonymous No.26382451]

Don't. If you want high risk high reward play, options is better. Buy naked calls or naked puts.

It has much more cut and dry limited losses than starting margin positions with an account.

If you insist on leverage day trading, I would recommend following this advice:

1: Never ever go to sleep with positions. Even if you have to cut losses, never hold a position for a longer period waiting for the market to become rational in the short term. It can lose you everything, including your sanity.

2: Have a clear hypothesis for very short term price movements when you start a position. ALWAYS include a stop loss. Always include a sell limit. If your stop loss gets hit, you were simply wrong and take the loss. Do not remove the stop loss to avoid the loss "getting real because I think it's going to turn any time it's just a dip".

Again, most people are not going to be psychologically suitable for day trading, and that's not being weak or whatever, that is just normal. Moreso, leverage trading long term is something almost nobody is psychologically suitable for. Professional investors and fund managers use extremely specific rules for themselves in order to not get rekt, and yet many still do get rekt. Especially shorters. Never forget. The market is more insane than you can fully predict even when you think it's insane.

t. someone who dabbled in day trading and was decent at it but ultimately stopped, and now mostly just invests in crypto long term plays and LEAPS (long term options). If I wanted to get back into trading short term sentiment, I would trade short term options for sure.

Good luck anon.

[Anonymous No.26382788]

>>26382451
Saved. I appreciate the advice, I'll look further into options trading.

[Anonymous No.26383197]

leverage trading wont save you if your issue is that you're too poor to make a shitton of money just holding spot alts

[Anonymous No.26383312]

based higuchad.
desu, leverage is gay unless you have 100k laying around to use cross.
Just take your shitcoin to AAVE and borrow USDT with collateral to ape.
That's how I've gotten to 500k networth, but with leverage I've lost 15k.