3 Signals Your Trusted Guru Trader Is A Newbie đ€Ą đ
1. He uses a leverage above 3x
High leverage (above 3x) is often a sign of overconfidence an thus a lack of proper risk management. Hedge Funds never ever exceed 3x! Coincidence? Lower leverage allows you to endure adverse price movements without catastrophic losses! Your goal is to preserve your capital while staying in the market for the long-term!
2. He only trades on Centralized Exchanges
Exclusively using Centralized Exchanges (CEXs) indicate limited familiarity with the broader crypto ecosystem. Trading on Decentralized Exchanges (DEXs) offer several benefits such as lower fee. Also DEXs are powered by the AMM Model, which enables trades to be executed instantly against liquidity pools (no need for order matching!)
3. He never hedge his position & never mentions options
A trader who avoids or is unaware of options (e.g dual investment binance tool) shows lack in advanced trading knowledge! Hedging is a risk management strategy used to offset potential losses. For example, you can buy a protective puts to sell an asset at a specific price. This will limit the downside risk while allowing the asset to benefit from price increases!
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