LIVEMarinero
@Marinero
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At this point in the last cycle:
BTC hadn't reached a new ATH yet.
SOL had just launched, but between September and December, it dropped by 80%. Eventually, it recovered, reaching a 260x increase from that low.
LUNA had just launched and was about to drop by 70% over the next few months, but it ended up becoming one of those rare cryptocurrencies with a 1000x increase, though only briefly đ©.
AXIE wouldn't launch for another month or so, but after it did, it would reach 1650x. But not immediately. In Q4, it would move sideways and only pump in Q1 of 2021.
GALA had just launched, and in Q4, it was set to drop by 90% before rising by 4650x đ.
And that's not even all the examples. I just picked some of the biggest pumps from the last cycle.
Most of them fell hard before they skyrocketed.
Every cycle in the history of financial markets, not just cryptocurrencies, when you're in a prolonged pullback, it seems like it can't get any worse.
But in reality, hard times are always pretty awful.
Good times are always really good, but only if you survive the first ones.
#BNB #BTC #binance #Bitcoin #ETH
BTC hadn't reached a new ATH yet.
SOL had just launched, but between September and December, it dropped by 80%. Eventually, it recovered, reaching a 260x increase from that low.
LUNA had just launched and was about to drop by 70% over the next few months, but it ended up becoming one of those rare cryptocurrencies with a 1000x increase, though only briefly đ©.
AXIE wouldn't launch for another month or so, but after it did, it would reach 1650x. But not immediately. In Q4, it would move sideways and only pump in Q1 of 2021.
GALA had just launched, and in Q4, it was set to drop by 90% before rising by 4650x đ.
And that's not even all the examples. I just picked some of the biggest pumps from the last cycle.
Most of them fell hard before they skyrocketed.
Every cycle in the history of financial markets, not just cryptocurrencies, when you're in a prolonged pullback, it seems like it can't get any worse.
But in reality, hard times are always pretty awful.
Good times are always really good, but only if you survive the first ones.
#BNB #BTC #binance #Bitcoin #ETH
Large funds are not my friends; they do not care about my well-being.
ETFs are a Trojan horse that attracts my interest and makes me believe they will push the price to unrealistic targets.
All bullish news I read has a single goal â to make me chase the tops, and it should wisely raise my attention threshold, especially if it comes out at key HTF levels.
Influencers are not my friends; they do not care about my well-being.
In 99% of cases, the coins they promote are only pushed due to high payments, making me buy despite structural reversals, hoping that Iâll hold on all the way down because "the fundamentals are strong."
I will not fall into these traps.
Every asset I trade is just a means to achieve financial freedom; itâs not a religion to believe in.
My rationality will prevail.
#BTC #BNB #binance #Bitcoin #ETH
ETFs are a Trojan horse that attracts my interest and makes me believe they will push the price to unrealistic targets.
All bullish news I read has a single goal â to make me chase the tops, and it should wisely raise my attention threshold, especially if it comes out at key HTF levels.
Influencers are not my friends; they do not care about my well-being.
In 99% of cases, the coins they promote are only pushed due to high payments, making me buy despite structural reversals, hoping that Iâll hold on all the way down because "the fundamentals are strong."
I will not fall into these traps.
Every asset I trade is just a means to achieve financial freedom; itâs not a religion to believe in.
My rationality will prevail.
#BTC #BNB #binance #Bitcoin #ETH
Boom
The global money supply is increasing.
Just in case you don't know why this is important:
An increase in the money supply is a "bullish" factor, as it indicates that the printing presses have started running again.
This leads to lower interest rates, increases liquidity, and pushes investors toward riskier markets such as cryptocurrencies and stocks.
#BTC #BTC #binance #ETH #DeFi
Just in case you don't know why this is important:
An increase in the money supply is a "bullish" factor, as it indicates that the printing presses have started running again.
This leads to lower interest rates, increases liquidity, and pushes investors toward riskier markets such as cryptocurrencies and stocks.
#BTC #BTC #binance #ETH #DeFi
Not all cycles are the same.
Sometimes there are bumps along the way. Sometimes everything moves faster, and sometimes slower.
I see that this cycle
speculation from ETFs and actual positive inflows have led to Bitcoin's price rising earlier than ever before (before the halving).
We had a mini altseason before the halving because the halving itself was much more well-known than in the past.
We are consolidating at previous highs longer than before (probably because we rose earlier than ever).
There are key differences, and it's difficult for newcomers to navigate this.
But many things are also exactly the same:
BTC is on its way and is actually still on track to rise much higher.
The overall structure of altcoin market charts largely repeats previous cycles at this time.
Bitcoin dominance is also at very similar levels at this time of year.
In essence, 2024 is in many ways similar to 2016 and 2020.
The problem that makes this extremely difficult for most is that they view each cycle as a definitive blueprint for the exact same day.
Even if history starts and ends the same way, itâs not allowed to differ in the middle.
Zoom out, be open to different scenarios, and adapt.
All I'm looking at right now is this:
"The longer the accumulation, the higher the expansion."
The early run made the current consolidation longer, but it will also make it stronger.
---
This translation should capture the essence and meaning of your original text. Let me know if you need further adjustments!
#BTC #BNB #binance #Bitcoin #ETH
Sometimes there are bumps along the way. Sometimes everything moves faster, and sometimes slower.
I see that this cycle
speculation from ETFs and actual positive inflows have led to Bitcoin's price rising earlier than ever before (before the halving).
We had a mini altseason before the halving because the halving itself was much more well-known than in the past.
We are consolidating at previous highs longer than before (probably because we rose earlier than ever).
There are key differences, and it's difficult for newcomers to navigate this.
But many things are also exactly the same:
BTC is on its way and is actually still on track to rise much higher.
The overall structure of altcoin market charts largely repeats previous cycles at this time.
Bitcoin dominance is also at very similar levels at this time of year.
In essence, 2024 is in many ways similar to 2016 and 2020.
The problem that makes this extremely difficult for most is that they view each cycle as a definitive blueprint for the exact same day.
Even if history starts and ends the same way, itâs not allowed to differ in the middle.
Zoom out, be open to different scenarios, and adapt.
All I'm looking at right now is this:
"The longer the accumulation, the higher the expansion."
The early run made the current consolidation longer, but it will also make it stronger.
---
This translation should capture the essence and meaning of your original text. Let me know if you need further adjustments!
#BTC #BNB #binance #Bitcoin #ETH
**Lately, I've been thinking about why many people can't make a profit when things are going well or can't buy when things are going poorly.**
It's because there's almost always another bullish or bearish catalyst around the corner.
**In 2017:**
âJust wait until the institutions get involved! You haven't seen anything yet.â
**In 2021:**
âThis time it's different. This time we might actually have a supercycle! Plus, this time the institutions are really getting involved.â
**In March of this year:**
âWait to sell, at least until the halving! Selling before then is just foolish!â
You can also apply this logic in a bearish environment during any cycle.
**2018 - 2022 - 2024:**
âChina banning crypto and mining has really killed it this time.â
âIt was a bubble all along, and it will never come back.â
âLuna and FTX really put a dent in the industry from which it will never recover.â
âA recession is coming.â
Do you see what I mean? There will always be something that makes anyone believe that growth either will never happen again or will continue forever.
Instead, I advise taking a relatively neutral and modest approach.
I understand that you don't want to sell the little you've earned when there's a chance to earn significantly more.
But if any of your positions have substantial profits, literally ignore any upcoming catalysts that might still be on the horizon.
And lock in your gains! đł
Thereâs literally always something that stops you from selling or buying.
The best buys happened when the market was completely destroyed, and the best sales during moments of maximum euphoria.
#BTC #BNB #binance #Bitcoin #ETH
It's because there's almost always another bullish or bearish catalyst around the corner.
**In 2017:**
âJust wait until the institutions get involved! You haven't seen anything yet.â
**In 2021:**
âThis time it's different. This time we might actually have a supercycle! Plus, this time the institutions are really getting involved.â
**In March of this year:**
âWait to sell, at least until the halving! Selling before then is just foolish!â
You can also apply this logic in a bearish environment during any cycle.
**2018 - 2022 - 2024:**
âChina banning crypto and mining has really killed it this time.â
âIt was a bubble all along, and it will never come back.â
âLuna and FTX really put a dent in the industry from which it will never recover.â
âA recession is coming.â
Do you see what I mean? There will always be something that makes anyone believe that growth either will never happen again or will continue forever.
Instead, I advise taking a relatively neutral and modest approach.
I understand that you don't want to sell the little you've earned when there's a chance to earn significantly more.
But if any of your positions have substantial profits, literally ignore any upcoming catalysts that might still be on the horizon.
And lock in your gains! đł
Thereâs literally always something that stops you from selling or buying.
The best buys happened when the market was completely destroyed, and the best sales during moments of maximum euphoria.
#BTC #BNB #binance #Bitcoin #ETH
Key events for today, August 29, 2024:đ°đż Kazakhstan - Central Bank rate - 10:00 UTC+3
đȘđș Schnabel (ECB) - 10:15 UTC+3
đȘđș Eurozone - Consumer Confidence (Aug) - 12:00 UTC+3
đȘđș Eurozone - Consumer Inflation Expectations (Aug) - 12:00 UTC+3
đȘđș Lane (ECB) - 12:15 UTC+3
đ©đȘ Germany - Consumer Inflation PPI (Aug - prelim) - 15:00 UTC+3
đșđž USA - GDP (Q2 2024 - prelim) - 15:30 UTC+3
đșđž USA - Initial Jobless Claims - 15:30 UTC+3
đșđž USA - Trade Balance (July - prelim) - 15:30 UTC+3
đșđž USA - Pending Home Sales (July) - 17:00 UTC+3
đą US Natural Gas - EIA Inventories - 17:30 UTC+3
đšđ Head of the Swiss Central Bank - 19:00 MSK
đșđž Bostic (Fed) - 22:30 UTC+3
#BTC #BNB #binance #Bitcoin #ETH
đȘđș Schnabel (ECB) - 10:15 UTC+3
đȘđș Eurozone - Consumer Confidence (Aug) - 12:00 UTC+3
đȘđș Eurozone - Consumer Inflation Expectations (Aug) - 12:00 UTC+3
đȘđș Lane (ECB) - 12:15 UTC+3
đ©đȘ Germany - Consumer Inflation PPI (Aug - prelim) - 15:00 UTC+3
đșđž USA - GDP (Q2 2024 - prelim) - 15:30 UTC+3
đșđž USA - Initial Jobless Claims - 15:30 UTC+3
đșđž USA - Trade Balance (July - prelim) - 15:30 UTC+3
đșđž USA - Pending Home Sales (July) - 17:00 UTC+3
đą US Natural Gas - EIA Inventories - 17:30 UTC+3
đšđ Head of the Swiss Central Bank - 19:00 MSK
đșđž Bostic (Fed) - 22:30 UTC+3
#BTC #BNB #binance #Bitcoin #ETH
"Most people who made and kept large amounts of money in cryptocurrency simply survived and held on long enough to get a few big wins.
You don't need much for this.
To survive and be around for these opportunities, your priorities are:
1. Reduce existential risk (cross-margin trading without a stop, all in one coin or position, all funds on one exchange, all funds in one hot wallet, and so on).
2. Minimize the size of your biggest losing trades. Your trading history should consist of small losses, break-evens, small wins, big wins â and never big losses.
2.1. This is a more nuanced approach, but in general, it means you shouldnât add to losing trades without a plan, shouldnât exceed the maximum position size or risk per trade, avoid excessive leverage, avoid overtrading (many small losses quickly turn into large ones), have clear criteria for entry and exit (for both winners and losers), and other basic principles.
Thereâs no mystery here â 99% of the time, you know when you're trading like an idiot."
#BTC #BNB #binance #Bitcoin #ETH
You don't need much for this.
To survive and be around for these opportunities, your priorities are:
1. Reduce existential risk (cross-margin trading without a stop, all in one coin or position, all funds on one exchange, all funds in one hot wallet, and so on).
2. Minimize the size of your biggest losing trades. Your trading history should consist of small losses, break-evens, small wins, big wins â and never big losses.
2.1. This is a more nuanced approach, but in general, it means you shouldnât add to losing trades without a plan, shouldnât exceed the maximum position size or risk per trade, avoid excessive leverage, avoid overtrading (many small losses quickly turn into large ones), have clear criteria for entry and exit (for both winners and losers), and other basic principles.
Thereâs no mystery here â 99% of the time, you know when you're trading like an idiot."
#BTC #BNB #binance #Bitcoin #ETH
"I'll be honest, much of my knowledge about trading was gained simply by observing charts, which created an understanding and intuition about price behavior.
I might not have known the names of patterns or other trendy terms that the guru traders selling courses use.
I studied live charts, tried to find reasons, and googled any terminology for any indicator that I didn't understand.
People who use complicated terms for simple concepts are usually terrible traders."
#BTC #BNB #binance #Bitcoin #ETH
I might not have known the names of patterns or other trendy terms that the guru traders selling courses use.
I studied live charts, tried to find reasons, and googled any terminology for any indicator that I didn't understand.
People who use complicated terms for simple concepts are usually terrible traders."
#BTC #BNB #binance #Bitcoin #ETH
People talk about friendship, but they never have time for their friends.
They talk about family, but don't meet with their own parents, brothers, and sisters while they still have the chance.
They talk about health, but for some reason, it's too difficult to lead a healthy lifestyle and avoid using drugs, including sugar and alcohol.
They talk about wealth, yet refuse to think independently and take real risks.
They talk about achievements, but are afraid of sacrifices and commitments.
They talk about self-improvement, but refuse to do what they already know they should be doing.
Talking is so easy. If you want to avoid drama, interact with people who truly do something worthwhile, don't lie to themselves, and don't have time for nonsense.
#BNB #Bitcoin #binance #ETH #Polygon
They talk about family, but don't meet with their own parents, brothers, and sisters while they still have the chance.
They talk about health, but for some reason, it's too difficult to lead a healthy lifestyle and avoid using drugs, including sugar and alcohol.
They talk about wealth, yet refuse to think independently and take real risks.
They talk about achievements, but are afraid of sacrifices and commitments.
They talk about self-improvement, but refuse to do what they already know they should be doing.
Talking is so easy. If you want to avoid drama, interact with people who truly do something worthwhile, don't lie to themselves, and don't have time for nonsense.
#BNB #Bitcoin #binance #ETH #Polygon
"It still seems to me that in the next month or so, we may face another significant crash. What happened recently wasn't painful enough"âthis is what I've heard from many people, and honestly, I disagree with that.
Don't get me wrong, we can definitely see another price dropâI'm not arguing against that.
But to say that the pain wasn't enough is naive.
My feed was going crazy. Newcomers were freaking out.
Unfortunately, I even saw a few stories about people taking their own lives.
Was I scared? No.
Did I go crazy? No.
But I've been in this crazy market for quite some time, and by now, I know the game well enough.
It's likely that all the people who say the fear wasn't enough are experienced investors, and this isn't their first cycle.
But try to put yourself in the shoes of a newcomer, someone who hasn't lived through the COVID crash, the FTX crash, etc.
And then tell me that what we witnessed wasn't maximum fear.
The moral of the story is:
When analyzing sentiment, don't rely solely on yourself and your own emotions, as your experience may influence the results.
You always need to zoom out and consider the market as a wholeâincluding all participants."
#BTC #BNB #binance #ETH #Ethereum
Don't get me wrong, we can definitely see another price dropâI'm not arguing against that.
But to say that the pain wasn't enough is naive.
My feed was going crazy. Newcomers were freaking out.
Unfortunately, I even saw a few stories about people taking their own lives.
Was I scared? No.
Did I go crazy? No.
But I've been in this crazy market for quite some time, and by now, I know the game well enough.
It's likely that all the people who say the fear wasn't enough are experienced investors, and this isn't their first cycle.
But try to put yourself in the shoes of a newcomer, someone who hasn't lived through the COVID crash, the FTX crash, etc.
And then tell me that what we witnessed wasn't maximum fear.
The moral of the story is:
When analyzing sentiment, don't rely solely on yourself and your own emotions, as your experience may influence the results.
You always need to zoom out and consider the market as a wholeâincluding all participants."
#BTC #BNB #binance #ETH #Ethereum
Overtrading â participating in an excessive number of trades, often driven by emotions, impatience, or the desire to quickly recover from losses, leading to a range of negative outcomes such as a significant drop in profitability and increased stress and burnout.
Fear â not opening positions because you are always afraid of losing money â accept losses, they are part of the learning process â without taking risks, you wonât gain any rewards.
Greed â not closing positions when you are in significant profit.
Impulse â making quick, often emotional decisions without thoroughly analyzing the situation or following a well-defined plan.
Trading plan â executing the entire process to understand the steps required to make a trade â a cold analysis based on statistics.
Risk management â opening trades with 1-5% of your capital depending on the favorability of the levels â never going all in â having a hedge in case of failure.
Discipline â consistently following the set of rules and strategies youâve established for yourself, regardless of emotions, market volatility, or external pressure â not taking trades that donât align with your plan.
Patience â waiting for the right opportunities to present themselves and sticking to your trading plan, without rushing to enter or exit trades based on emotions or impatience â yes, you may wait days, weeks, or even months for the price to reach your level, never rush.
Thereâs no need to trade out of revenge, rush to multiply your money, or compare yourself to others.
#BTC #BNB
#binance #ETH #MarketDownturn
Fear â not opening positions because you are always afraid of losing money â accept losses, they are part of the learning process â without taking risks, you wonât gain any rewards.
Greed â not closing positions when you are in significant profit.
Impulse â making quick, often emotional decisions without thoroughly analyzing the situation or following a well-defined plan.
Trading plan â executing the entire process to understand the steps required to make a trade â a cold analysis based on statistics.
Risk management â opening trades with 1-5% of your capital depending on the favorability of the levels â never going all in â having a hedge in case of failure.
Discipline â consistently following the set of rules and strategies youâve established for yourself, regardless of emotions, market volatility, or external pressure â not taking trades that donât align with your plan.
Patience â waiting for the right opportunities to present themselves and sticking to your trading plan, without rushing to enter or exit trades based on emotions or impatience â yes, you may wait days, weeks, or even months for the price to reach your level, never rush.
Thereâs no need to trade out of revenge, rush to multiply your money, or compare yourself to others.
#BTC #BNB
#binance #ETH #MarketDownturn
The most important thing I wish I had known when I started trading:
There is no perfect strategy.
Many things work.
Some strategies work better under certain conditions.
Other strategies work better under different conditions.
Some strategies will be more or less compatible with your personal qualities, which can directly affect their profitability.
And all of this will change over time.
Every strategy has its strengths and weaknesses, as well as inherent trade-offs at any given moment.
Searching for what works sometimes can be more fruitful than searching for what works all the time.
Think about it.
#BTC #binance #Bitcoin #Ethereum #DeFi
There is no perfect strategy.
Many things work.
Some strategies work better under certain conditions.
Other strategies work better under different conditions.
Some strategies will be more or less compatible with your personal qualities, which can directly affect their profitability.
And all of this will change over time.
Every strategy has its strengths and weaknesses, as well as inherent trade-offs at any given moment.
Searching for what works sometimes can be more fruitful than searching for what works all the time.
Think about it.
#BTC #binance #Bitcoin #Ethereum #DeFi
A healthy lifestyle begins with getting rid of bad habits:
You will feel tired as long as you eat poor-quality food.
You will feel drained as long as you interact with neurotic or manipulative people.
You will feel insecure if you continue doing things that don't improve your life just because everyone else is doing them.
Don't settle for an average version of yourself.
Life is much more fun in a healthy body and with a confident mind; invest in yourself until you achieve this â it is the first step towards a happy life, and there is no shortcut to it.
#BTC #BNB #binance #binance #Bitcoin
You will feel tired as long as you eat poor-quality food.
You will feel drained as long as you interact with neurotic or manipulative people.
You will feel insecure if you continue doing things that don't improve your life just because everyone else is doing them.
Don't settle for an average version of yourself.
Life is much more fun in a healthy body and with a confident mind; invest in yourself until you achieve this â it is the first step towards a happy life, and there is no shortcut to it.
#BTC #BNB #binance #binance #Bitcoin
Trading and investing are not one-dimensional disciplines.
People very often make the terrible mistake of stagnating on one main idea, not allowing themselves to be flexible enough to change or to have a Plan B in case the primary scenario becomes invalid.
Every setup can be invalidated; it's a matter of probability, which can change in an instant due to additional charts.
The main goal of a trader/investor is not to be right 100% of the time but to have a good track record in the long run, which means that good trades should outweigh the bad ones.
In this context, using stop-losses and closing trades below SL is crucial, and personally, I prefer to lose a small % and move on rather than painfully holding a potential -30% because... "just another -3% and I'm sure it will bounce back."
For "long-term investments," the story is very similar, and that's why you should look at the charts because if an asset loses key levels, it will fall significantly (or not, depending on the importance of the level below).
Stop holding blindly, which is why 90% of people lose money in this space.
A failed trade should not affect your overall path, especially from a psychological standpoint.
Things happen in life; the key is to learn from this mistake and improve the next time.
Those who are stuck in the past will never achieve great success in the future.
#BTC #BNB #Bitcoin #Ethereum #binance
People very often make the terrible mistake of stagnating on one main idea, not allowing themselves to be flexible enough to change or to have a Plan B in case the primary scenario becomes invalid.
Every setup can be invalidated; it's a matter of probability, which can change in an instant due to additional charts.
The main goal of a trader/investor is not to be right 100% of the time but to have a good track record in the long run, which means that good trades should outweigh the bad ones.
In this context, using stop-losses and closing trades below SL is crucial, and personally, I prefer to lose a small % and move on rather than painfully holding a potential -30% because... "just another -3% and I'm sure it will bounce back."
For "long-term investments," the story is very similar, and that's why you should look at the charts because if an asset loses key levels, it will fall significantly (or not, depending on the importance of the level below).
Stop holding blindly, which is why 90% of people lose money in this space.
A failed trade should not affect your overall path, especially from a psychological standpoint.
Things happen in life; the key is to learn from this mistake and improve the next time.
Those who are stuck in the past will never achieve great success in the future.
#BTC #BNB #Bitcoin #Ethereum #binance
Tutorial 2
Crypto exchanges usually offer two types of margin: isolated and cross margin.
This distinction essentially determines your liquidation price as well as the consequences of liquidation.
Cross margin means that your entire account can be used as margin for a position.
The advantage is that using your entire account as margin typically means you don't need to use high leverage to open positions. This allows you to set the liquidation price further away from your entry point since the position has greater margin/is well collateralized.
The disadvantage is that since your entire account is available as margin, it can be a problem if the price reaches your liquidation point.
Isolated margin means that you can set a fixed amount of margin for a given position.
The advantage is that if the position reaches your liquidation price, it is forcibly closed, but the rest of your account remains protected. In this sense, it is perhaps the best (or at least more flexible) risk management tool.
Whenever you use cross margin without strict protection (a stop-market order for all your positions), the risk is that the market can liquidate you with one position.
Isolated margin is not a magic bulletâyou still need to think about position size, % of the account at risk, liquidation price, and so onâbut at least you know that your account won't be wiped out by one position (with proper setup).
Regarding the previous points about flexibility, isolated margin also allows you to change the leverage used, add/remove collateral, and much more depending on your trading style and how you want to build a position.
One example is adding margin to reduce leverage and thus increase the distance between the market and your liquidation. Removing margin to increase leverage, freeing up margin for other positions, and many other options.
In general, knowing your liquidation, % of account at risk, and position size will do the heavy lifting in the risk management department.
But understanding how leverage actually works and using it to improve capital efficiencyâin relation to simultaneous positions, counterparty risk, single position risk, and net riskâis a huge plus.
#BTC #BNB #binance #Ethereum #Bitcoin
This distinction essentially determines your liquidation price as well as the consequences of liquidation.
Cross margin means that your entire account can be used as margin for a position.
The advantage is that using your entire account as margin typically means you don't need to use high leverage to open positions. This allows you to set the liquidation price further away from your entry point since the position has greater margin/is well collateralized.
The disadvantage is that since your entire account is available as margin, it can be a problem if the price reaches your liquidation point.
Isolated margin means that you can set a fixed amount of margin for a given position.
The advantage is that if the position reaches your liquidation price, it is forcibly closed, but the rest of your account remains protected. In this sense, it is perhaps the best (or at least more flexible) risk management tool.
Whenever you use cross margin without strict protection (a stop-market order for all your positions), the risk is that the market can liquidate you with one position.
Isolated margin is not a magic bulletâyou still need to think about position size, % of the account at risk, liquidation price, and so onâbut at least you know that your account won't be wiped out by one position (with proper setup).
Regarding the previous points about flexibility, isolated margin also allows you to change the leverage used, add/remove collateral, and much more depending on your trading style and how you want to build a position.
One example is adding margin to reduce leverage and thus increase the distance between the market and your liquidation. Removing margin to increase leverage, freeing up margin for other positions, and many other options.
In general, knowing your liquidation, % of account at risk, and position size will do the heavy lifting in the risk management department.
But understanding how leverage actually works and using it to improve capital efficiencyâin relation to simultaneous positions, counterparty risk, single position risk, and net riskâis a huge plus.
#BTC #BNB #binance #Ethereum #Bitcoin
**Leveraged Trading**
Letâs revisit some basics of leveraged trading.
A common misconception is that higher leverage equals more profit or loss.
In reality, thatâs not the case.
Leveraged trading essentially means you put down a portion of a position's value as collateral and effectively "borrow" the rest.
The important relationship is as follows:
More margin = more collateral = less leverage.
Less margin = less collateral = more leverage.
The position size ultimately determines how much you will earn or lose, while leverage determines the liquidation price (as a function of how well the position is collateralized).
Back to our initial example:
Petya has a position size of $10,000 with 10x leverage.
Vanya has a position size of $10,000 with 5x leverage.
They make the same trade, and the price moves 5% in their favor.
Question: Who makes more money?
Answer: They make the same amount of money because their position sizes are identical.
The difference is that Petya had a closer liquidation price because he put down less margin = higher leverage, while Vanya had a further liquidation price because he put down more margin = lower leverage.
Therefore, the position size is the key variable, and leverage essentially determines your capital efficiency, i.e., how many dollars you need to put up for a given position size.
Hence, all these âleverage reduces counterparty riskâ claims: if you typically trade with a position size of $50,000, you can achieve this by holding only $10,000 on the exchange and using 5x leverage. This way, if the exchange goes bankrupt, you lose $10,000 instead of the full $50,000.
[#tutorial 1/2]
Letâs revisit some basics of leveraged trading.
A common misconception is that higher leverage equals more profit or loss.
In reality, thatâs not the case.
Leveraged trading essentially means you put down a portion of a position's value as collateral and effectively "borrow" the rest.
The important relationship is as follows:
More margin = more collateral = less leverage.
Less margin = less collateral = more leverage.
The position size ultimately determines how much you will earn or lose, while leverage determines the liquidation price (as a function of how well the position is collateralized).
Back to our initial example:
Petya has a position size of $10,000 with 10x leverage.
Vanya has a position size of $10,000 with 5x leverage.
They make the same trade, and the price moves 5% in their favor.
Question: Who makes more money?
Answer: They make the same amount of money because their position sizes are identical.
The difference is that Petya had a closer liquidation price because he put down less margin = higher leverage, while Vanya had a further liquidation price because he put down more margin = lower leverage.
Therefore, the position size is the key variable, and leverage essentially determines your capital efficiency, i.e., how many dollars you need to put up for a given position size.
Hence, all these âleverage reduces counterparty riskâ claims: if you typically trade with a position size of $50,000, you can achieve this by holding only $10,000 on the exchange and using 5x leverage. This way, if the exchange goes bankrupt, you lose $10,000 instead of the full $50,000.
[#tutorial 1/2]
It is not true that your 25 years should be the best years of your life.
Donât let anyone scare you with such absurd theories.
We all live in completely different situations and contexts, so itâs foolish to lump everything together.
For me personally, my 25 years were an experience that allowed me to understand what I want from my life in many aspects:
- Financially
- In terms of purpose
- In relationships and friendship
- Emotionally
- Physically
And only now, in my 40s, is my life starting to take the shape I wanted.
Now I feel ten times happier and better than I did ten years ago.
So my only advice is this: use your 25 years as a means for your growth, but never as a âdeadline.â
Life doesnât end at 30 or 40 years; itâs just a new chapter that can be even more exciting and fulfilling.
Donât let anyone scare you with such absurd theories.
We all live in completely different situations and contexts, so itâs foolish to lump everything together.
For me personally, my 25 years were an experience that allowed me to understand what I want from my life in many aspects:
- Financially
- In terms of purpose
- In relationships and friendship
- Emotionally
- Physically
And only now, in my 40s, is my life starting to take the shape I wanted.
Now I feel ten times happier and better than I did ten years ago.
So my only advice is this: use your 25 years as a means for your growth, but never as a âdeadline.â
Life doesnât end at 30 or 40 years; itâs just a new chapter that can be even more exciting and fulfilling.
Cryptocurrency list for the upcoming week:
$BTC - The FOMC interest rate decision is scheduled for July 31.
$JUP - Voting on the Jupiter proposal to reduce token supply by 30% starts next Thursday.
$W - $176M worth of $W will be unlocked on August 3, constituting 33% of its circulating supply.
$PSTAKE - pSTAKE Finance launches BTC Liquid Staking solution on July 29.
$ROUTE - Router chain will launch on mainnet on July 30. Router is an interoperability solution.
Eclipse - Eclipse, the first Ethereum L2 based on Solana VM, launches next week.
#BTC #BNB #Ethereum #binance #DeFi
$BTC - The FOMC interest rate decision is scheduled for July 31.
$JUP - Voting on the Jupiter proposal to reduce token supply by 30% starts next Thursday.
$W - $176M worth of $W will be unlocked on August 3, constituting 33% of its circulating supply.
$PSTAKE - pSTAKE Finance launches BTC Liquid Staking solution on July 29.
$ROUTE - Router chain will launch on mainnet on July 30. Router is an interoperability solution.
Eclipse - Eclipse, the first Ethereum L2 based on Solana VM, launches next week.
#BTC #BNB #Ethereum #binance #DeFi
The most common ways to lose everything:
- Constant attachment to one coin, narrative, or position.
- Never taking profits (or always transferring those profits into other positions, never cashing out).
- Moving targets higher/lower when the price moves in your favor.
- Buying the dip/shorting the breakout using leverage and without tight stops.
- Adding to losing trades without a pre-defined maximum risk allocation.
- Overtrading core positions or trading with leverage out of boredom.
- Not understanding that conditions have changed when your setups stop working, and instead continuing to trade as before without adapting.
- Chasing your record PnL with revenge trading + setting arbitrary portfolio goals.
- Developing a god complex (due to a short-term winning streak), believing you can never be wrong.
- Adjusting your lifestyle and spending as soon as you make a few successful trades + assuming you can always make X amount of money trading (conditions change, so your extrapolation is meaningless).
#BTC #BNB #binance #Bitcoin #ETH
- Constant attachment to one coin, narrative, or position.
- Never taking profits (or always transferring those profits into other positions, never cashing out).
- Moving targets higher/lower when the price moves in your favor.
- Buying the dip/shorting the breakout using leverage and without tight stops.
- Adding to losing trades without a pre-defined maximum risk allocation.
- Overtrading core positions or trading with leverage out of boredom.
- Not understanding that conditions have changed when your setups stop working, and instead continuing to trade as before without adapting.
- Chasing your record PnL with revenge trading + setting arbitrary portfolio goals.
- Developing a god complex (due to a short-term winning streak), believing you can never be wrong.
- Adjusting your lifestyle and spending as soon as you make a few successful trades + assuming you can always make X amount of money trading (conditions change, so your extrapolation is meaningless).
#BTC #BNB #binance #Bitcoin #ETH
In one thing I am almost certain: many people have goals that are too high.
Listen, no matter how I feel about the hope that your dreams will come true after a few successful deals, you probably don't want to hear this, but don't lose touch with reality.
Predictions about BTC rising to 200K-300K+ and average growth of 20x-30x in altcoins are extremely unrealistic goals that, instead of providing a concrete shift in your life, are more likely to lead you to despair.
And even if you acknowledge that these goals will be achieved, you are likely to never realize them.
It's a cursed cycle where your expectations are constantly being fueled.
In the coming years, those who will win are the ones who will be increasing their profits by "chasing" favorable R/R levels.
In this general context, patience is the most difficult skill to master, as staying away from the market without feeling the need to rush into any position is something few can do because it seems like you are constantly missing out on opportunities.
Lions wait for hours, hidden in the grass, before pouncing on their prey.
Do the same.
Furthermore, I have seen that some people live solely by trading. Constantly worrying about how the market is behaving, destroying their real life due to anxiety.
You will never achieve anything good if you have such an attitude.
Your mind should constantly be in a state of calm and peace regardless of market conditions.
For this, it is crucial to have a life goal, go to the gym, and take care of your relationships/social life, as they are all part of what I call "food for the mind and soul."
Don't save every penny by giving up vacations because you need to invest; you are not wasting money.
You are buying memories.
And these memories, combined with strong self-care, will lead you to happiness and harmony â key factors for working in the market.
#BTC #BNB #binance #Ethereum #Polygon
Listen, no matter how I feel about the hope that your dreams will come true after a few successful deals, you probably don't want to hear this, but don't lose touch with reality.
Predictions about BTC rising to 200K-300K+ and average growth of 20x-30x in altcoins are extremely unrealistic goals that, instead of providing a concrete shift in your life, are more likely to lead you to despair.
And even if you acknowledge that these goals will be achieved, you are likely to never realize them.
It's a cursed cycle where your expectations are constantly being fueled.
In the coming years, those who will win are the ones who will be increasing their profits by "chasing" favorable R/R levels.
In this general context, patience is the most difficult skill to master, as staying away from the market without feeling the need to rush into any position is something few can do because it seems like you are constantly missing out on opportunities.
Lions wait for hours, hidden in the grass, before pouncing on their prey.
Do the same.
Furthermore, I have seen that some people live solely by trading. Constantly worrying about how the market is behaving, destroying their real life due to anxiety.
You will never achieve anything good if you have such an attitude.
Your mind should constantly be in a state of calm and peace regardless of market conditions.
For this, it is crucial to have a life goal, go to the gym, and take care of your relationships/social life, as they are all part of what I call "food for the mind and soul."
Don't save every penny by giving up vacations because you need to invest; you are not wasting money.
You are buying memories.
And these memories, combined with strong self-care, will lead you to happiness and harmony â key factors for working in the market.
#BTC #BNB #binance #Ethereum #Polygon
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