Hello again fellow redditors,
Some may remember that few days ago I made a post about turning $15 into $1000. The idea was to use huge leverage and hopefully get to a good enough amount where you can just continue with “normal” trading. That, however, didn’t happen and heres why.
First of all, I don’t think leverage is that bad if used in appropriate amount. I believe good traders can work it in their advantage. The problem I had though was low capital. With $15 you can’t really do much per trade. I managed to turn that into $30, then lost $10, lost $5, got $20, and then lost all. You get the story. High leverage was needed, but I got to learn some things.
Why did that happen?
With high leverage there is no skill, you’re literally all dependent on luck. Crypto goes up and down constantly so you can pretty much just hit buy or sell without looking at it and hope it goes in your favor, because a tiny change nets you huge percentage of gains, same goes the other way. You can kiss your stop loss a goodbye because it won’t work.
Another thing that is quite important is how leverage impacts your health. I swear to God, even though it was only $15, I was stressed more than ever since I start trading. You have to stare at the charts and and close the trade when you find it appropriate, and we all know how staring at the charts impacts us. When I got liqudaited, I had a feeling to deposit some more and do more degenerate gamling, but thank God I avoided that path. It relies more on luck than anything else, your skills dont mean a jack.
What’s the point of this generic post? Don’t use high leverage, please. Even though you see it everyday, you cannot stress it enough.
Yeah you can shit on me how you said in previous post how my challenge would end in a day, have your winning day here.
Tl;dr: high leverage bad, dont use
submitted by /u/Pavkelino
[link] [comments]