HOW TO SELECT A GOOD LEVERAGE FOR YOUR TRADE POSITION. 💯🔥
If you have $5000 and above, and you are still using leverage, it is either you don't understand the purpose of the fercility, you are impatient with growth or you are just simply greedy..🙊
look, the fundamental purpose of leverage is to help you get into the trading business with very small initial capital. so you won't be left out. Do you know you can control a quantity of coins worth $200 just with $2 initial capital?🤠 that is the main reason why leverage is innovated.💪
levrage is a #LEVER🔥🔥 , It is like a loan. you should use it ONLY If you definitely have to. And you should use just the right amount for your initial capital.
This rule is for anyone who cares:🤷
the key indicator of a good or bad leverage is "liquidation price". leverage determines your liquidation price for a specific position. Now here's the rule:🧏♂️
WHILE SETTING A LEVERAGE, FOCUS ON THE LIQUIDATION PRICE. THE LIQUIDATION PRICE SHOULD BE 50% DISTANT FROM YOUR ENTRY PRICE.
For example : assuming you are BUYING and your entry price is $30.5, your #liquidation price should be $15.25 and BELOW $15.25 not above it.
if you are taking aSHORT , and your entry is 30.5, your liquidation price should be 45.75 and above not below it.
The next time you trade, try to follow this rule, then you will know if the market has always been the enemy of your progress or YOU!