Determining the Right Leverage Strategy

1. Only used when the market is in an uptrend

As mentioned in the previous article, leveraged profits will flow abundantly when asset prices are rising. On the other hand, leverage actions will actually be a scourge when asset prices are battered.

So, therefore, investors should take buying action if they believe that the price of the underlying asset will enter an uptrend phase.

But the question is, what are the main characteristics of the uptrend stage? For your information, the main requirement for an uptrend phase is when the price of an asset forms a Higher High Higher Low (HH HL) pattern.

Furthermore, the leverage activity in the Pluang application has a Buy or Long position feature which helps you to take advantage of the uptrend momentum to gain optimal profits. Even so, it is still recommended that you understand technical analysis first so that you don't take the wrong steps in making decisions in this activity.

2. Pay attention to crypto/macroeconomic conditions!

Just like investment activities in other assets, crypto/macroeconomic aspects are also key factors for investors before engaging in leverage activities.

Because, understanding crypto market/macroeconomic conditions will help investors to decide whether to enter or exit leveraged activities. Apart from that, knowing the current economic situation can also help investors determine the ideal crypto price/which sector shares need to be leveraged to achieve good profits.

For example, if Buddy Cuan notices that crypto prices are still at the top, then there's no harm in seeking your luck by leveraging crypto shares in that sector.

3. Determine the Stop Loss and Take Profit Limits

Before carrying out buying and selling actions, investors should determine a certain price point at which they will definitely buy an asset.

Vice versa. Market participants must also determine a certain price point at which they will definitely sell their assets, both with the aim of limiting losses (stop loss) and taking profits

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