Leveraged trading is appealing to all of us, of course it is a very profitable market! However, this business is actually a huge swamp.
I'm speechless when it comes to risk management. We shared it on the announcement channel, but let me summarize a bit.
There is a huge mistake in the market. Opening high leverage is gambling. WRONG!!!
For years, big crypto influencers have been saying "Don't exceed 10x, anything above 5x is gambling", guys, there is no such thing. The logic of half a doctor, half a teacher, makes you lose your faith. Crypto influencers who don't know anything will also make you lose your money. The most critical point of leverage is the cash and volume ratio.
$10 100x is the same as $100 10x.
Now let's consider someone with a $1000 bankroll. The ideal thing for this guy is to open a bankroll*2 volume. If he opens more than one transaction at the same time, bankroll*5 at best 6, in other words, the total volume he will make should not exceed 5-6 times his bankroll. He has the right to make a maximum of $6000 volume, otherwise, when there is a stop, they will have a hard time collecting their bankroll. This guy makes a $2000 volume in a single transaction, whether he opens $20 100x or $1000 2x, these are exactly the same things.
In cross transactions, the leverage amount (x) is of no importance. The only important point is VOLUME.
Leverage is important in isolated transactions, and in order not to be liquid, you need to enter it in accordance with the volume. I do not recommend isolated transactions, when you set a stop, you will not be liquid in the cross anyway.
When you do risk management well, you will not be liquid unless the coin is delisted in cross transactions. And before opening each transaction, you should determine the stop point and open it. When you stop, you open a transaction in a way that you will not lose more than 3-4% of the cash.
It's not rocket science, my friends. You can grow very easily with basic math. Be careful about the people you follow, most of them don't know anything.
