If you're serious about becoming a true trader, not just a risk-taker, this article deserves your full attention. Those opening 10x-20x leverage positions with their entire capital are, quite frankly, gambling rather than trading. The high risk of liquidation comes from the extreme volatility of the crypto market, where swings of 10%-20% are completely normal. Even with a stop-loss in place, such moves could wipe out a large portion of your initial investment.
In trading, the key factor is patience. If you're someone who struggles to be patient, I’m afraid you’re not likely to become a successful trader. Let’s delve into why patience plays a crucial role in trading.
Firstly, it’s critical to avoid jumping into 10x leverage, or even 1x leverage positions, with your entire principal. Trading with such a high stake is no different than trying to predict market movement by flipping a coin. Instead, your initial trade should only represent 5% of your total capital.
If your trade starts turning a profit, excellent! You can take profits at your convenience and move on. However, if the market goes against your position, don’t panic. Since only 5% of your principal is at risk, patience is your best ally here. If the market moves against you by 10%, that’s the time to consider adding to your position strategically.
This approach allows you to position yourself more favorably as the market eventually corrects itself and gravitates back toward your entry point (barring any exceptional circumstances). Once your trade turns profitable, wait until you're in a stronger position and then close it with your desired profit. Success in trading often comes down to well-timed patience and disciplined strategy.
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