--- SHOULD I USE LEVERAGE OR NOT? (part 2)
Traps will bring many advantages if we grasp most of the chances of winning.
But maybe that's for someone with good analytical ability, definitely not me.
I'm not good at technical analysis, not quick at updating news, and can't even guess the macro situation. I understand my abilities in this market, so I CHOOSE NOT TO USE LEVERAGE no matter how confident I am with my orders. Because in this market, anything can happen.
A few years ago, I shorted dogecoin because I saw that in less than a day, it had increased 100%, I thought it could hardly increase further, but God knows that a few hours later, it had increased nearly 200%. I lost a lot that time, and I still don't forget it.
The paradox is, using leverage seems seductive, but when you use it, you only end up with losses, without a single penny of profit. Until I understand my own abilities better, I stop being greedy and have fun with x1, then I start making money again.
Unfortunately, my profits have not yet recovered my losses. The price to pay for the lesson of using leverage is too high (nearly $3000). It shouldn't have been that big. I hope that newbies who are just dipping their toes into the market will calm down, spend a small amount of money to learn first, and don't rush to make a profit. Because you cannot make a profit with ignorance. You cannot make a profit with greed alone. You only make profits when you understand more, are more skilled, calmer, and more decisive.
Part 3 will talk about mental stress and mental disadvantages when using leverage. Follow along to read.