Post by 3bid on Sept 4, 2023 22:39:08 GMT -5
Risk-taking: when we do nothing to test for latent talent to overcome our fear and greed.
-3bid
A friend of mine confesses:
So, for the last 3-4 months I have been really trying to grasp futures/leverage trading Bitcoin/Ethereum and other alt-coins using Mexc.com exchange... They don’t require any ‘KYC’ verification bs that almost every other exchange that offers futures/leverage trading does... It’s only a matter of time before they are probably forced to implement it as well, but until then, I have been using it to my advantage..
I would get lucky and make some profit with trades but then I’d end up losing way more than I ever gained and it almost became an addiction/gamble to keep trying, but I would keep losing...I’ve never lost so much $ in such a short amount of time... May/June were the worst months for my leverage trading journey and I basically ended up losing all my $ I had saved (almost 100k gone)...I was sick to my stomach, disgusted at myself for being such an idiot to even try leverage trading when I knew of the risks/etc... I was disgusted with myself that I just was horrible at trading in general/couldn’t get a grasp on it/made bad choices entering short or long positions and watched it all get liquidated/didn’t try to cut losses and get out while I could...
I wasn’t trading safely with my leveraged positions.. from using way too much leverage (up to 100x)/way too much margin in a single position to trading with emotion and impulsively entering or adding to my short/long position... Which ultimately all would lead to a fast liquidation since my liquidation price was never in safe territory and I’d be completely wiped out of the margin/liquidated... I was using ‘isolated margin’ at first where you’re using an isolated margin amount for a position from your account. You can add margin to your position if it’s in risk of liquidation and I would ultimately always have to keep adding margin to my bad leveraged positions I would get myself into, to avoid full liquidation.. Sometimes it would work, where I would ‘save’ my position from getting fully liquidated by adding enough margin to raise liquidation level higher than the price went so I would at least not take a loss on the trade or end up in some profits when the coin finally dropped... But, most times, it would bite me in the ass and I would end up losing all the margin that I was propping the position up with trying to avoid liquidation... I couldn’t figure out how to even get a good entry on a position because of isolated margin - the liquidation price always seemed not at a safe level/at a level that could be liquidated easily with a quick pump or dump... I would never use stop-losses either which would’ve saved my ass a lot.
I’ve found out that, without a doubt; these exchanges have to be able to see your position/positions of everyone and they deliberately trade against that position..They got me liquidated many times with an isolated position by trading against my position... The whales chase liquidity and look for where the most liquidations are—long or short... Price movement is dictated by that fact and there’s really no such thing as “bear or bull”... So, I eventually figured out how to use ‘cross margin’ type positions where you enter a position the same as isolated but the total amount in your futures trading account is used as additional margin - which results in having a safer liquidation price/don’t have to keep adding margin to protect a position from being potentially liquidated... This was a game changer... I could get an entry in long or short positions better without much risk of liquidation...
After using cross margin and only using a small amount of margin each position that I opened - I started making profits without losing profit/margin... It allowed me to not set stop loss/take any loss - even if the trade goes against you... If trade goes against you, you either add more to the position (within a limit) to get a better a price average (making sure your liquidation price is safe) or wait it out until price falls under/over your entry and then close the position in profit... All without ever taking a loss from a hunted stop loss or risking liquidation since you’re using cross margin and only using 10-20% of your account per position...
For the last 2 months...I haven’t taken any loss and ended up making almost everything I stupidly lost back - what a relief!!...It’s crazy how much liquidity there is out there in the crypto market alone... I’m working on making the rest back & more now that I have this experience/a better grasp on trading in general... So, there’s my crazy summer story where I lost almost 100k (all I had), ended up having to take out a d*mn 5k credit card loan to use as funds to start all over/leverage trade with and ended up making almost everything back...
- Zack