- Oct 2, 2022
- 1,584
- 2,852
I see a growing number of people here trading with leverage. Like 5x, 10x or more.
Like this poor little guy.
First of all, I'm speaking from experience.
Let me explain to you why this will absolutely destroy you, wreck you emotionally and crush your confidence in future crypto endeavors.
Leverage is attractive because if you go to Binance and have just $1k capital you can turn the leverage indicator all the way to the right and set it to a nice and sweet 125x.
What does it mean?
Boom. You now effectively trade with $125,000 in capital even if you only have $1k in your account.
Wow. Omg. I'll be rich. Mom, look at me now.
Hold on grasshoper.
Market reality is about to kick you so hard in the balls that you'll wake up in a new dimension, that it's still 3D only you'll have no capital to trade with.
Deppo you don't know me man, talk about yourself.
Well, my dear boy, here's the reality of the markets.
Crypto coins are extremely volatile. If you just buy coins to hodl in spot or your cold wallet that is effectively 1x leverage and that means in a market correction that APTUSDT goes down 5% your bag will also drop by just 5%.
Let's now talk about just 20x leverage, not even higher.
A 5% APTUSDT drop on a position that has been placed on 20x leverage means 100% drop of your initial capital, aka your sweet little $1k in savings that you worked "hard" for.
Boom. You're out. Finito. In one little normal market correction. Which was also the fake move before the big coming rise. That means you're not only out of money, you also lost the big 10% rise that came after say APTUSDT corrected by a total of 6%.
While your buddy who held APTUSDT in his cold Trust wallet wakes up the next day and sees a nice little 10-6=4% return while all the volatility happened in his sleep without him knowing.
But what if it goes up 5%? I got you you know-it-all douche.
Ok. It goes up 5%. Congrats. Now you have $2k.
You do it again on SUIUSDT. Congrats. Now you have $4k.
DOGEUSDT up 5%. Congrats. Now you have $8k.
How many times do you think you are going to repeat this before a single move in the opposite direction wipes you the F out.
Statistically you will be out sooner than you realize.
Math is cold and cruel. Universe is built on math. You can never defeat it.
What you can do is stop gambling and learn some real trading skills instead.
Like this poor little guy.
First of all, I'm speaking from experience.
Let me explain to you why this will absolutely destroy you, wreck you emotionally and crush your confidence in future crypto endeavors.
Leverage is attractive because if you go to Binance and have just $1k capital you can turn the leverage indicator all the way to the right and set it to a nice and sweet 125x.
What does it mean?
Boom. You now effectively trade with $125,000 in capital even if you only have $1k in your account.
Wow. Omg. I'll be rich. Mom, look at me now.
Hold on grasshoper.
Market reality is about to kick you so hard in the balls that you'll wake up in a new dimension, that it's still 3D only you'll have no capital to trade with.
Deppo you don't know me man, talk about yourself.
Well, my dear boy, here's the reality of the markets.
Crypto coins are extremely volatile. If you just buy coins to hodl in spot or your cold wallet that is effectively 1x leverage and that means in a market correction that APTUSDT goes down 5% your bag will also drop by just 5%.
Let's now talk about just 20x leverage, not even higher.
A 5% APTUSDT drop on a position that has been placed on 20x leverage means 100% drop of your initial capital, aka your sweet little $1k in savings that you worked "hard" for.
Boom. You're out. Finito. In one little normal market correction. Which was also the fake move before the big coming rise. That means you're not only out of money, you also lost the big 10% rise that came after say APTUSDT corrected by a total of 6%.
While your buddy who held APTUSDT in his cold Trust wallet wakes up the next day and sees a nice little 10-6=4% return while all the volatility happened in his sleep without him knowing.
But what if it goes up 5%? I got you you know-it-all douche.
Ok. It goes up 5%. Congrats. Now you have $2k.
You do it again on SUIUSDT. Congrats. Now you have $4k.
DOGEUSDT up 5%. Congrats. Now you have $8k.
How many times do you think you are going to repeat this before a single move in the opposite direction wipes you the F out.
Statistically you will be out sooner than you realize.
Math is cold and cruel. Universe is built on math. You can never defeat it.
What you can do is stop gambling and learn some real trading skills instead.
