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Leverage

BTC SHAKEOUT OF WEAK HANDS BEFORE A FACE RIPPING RALLY!?!? LFG!!BTC is going to close below 48,600 on the Monthly view. This is the .382 fib retracement price range. A broadening top has formed (morphing from a bull flag). We have seen higher lows over the last several months which is a good sign. With $6B in options expiring tomorrow, I expect to see more volatility short term. I wouldn’t be surprised to see a move down to the next fib level (red line in the channel). Additionally, with BTC price history & movement, a wick down to the 100 week moving average level wouldn’t be out of question. However, being the start to a new year, institutions and whales will start increasing money flow towards the space. Hedge funds are also RISK ON Q1 typically as well. Don’t let the day-to-day news (noise) force you to sell. It’s clear BTC and others are here to stay. Keep stacking and add on weakness, and don’t over leverage yourself. Typical tradefi brokerages use 2-4x leverage. Having the ability to go 50x that is absurd in my opinion. It makes traders greedy & try to go for those YOLO huge gains. Leverage is okay but be smart about it, remember the downside works against you the same way. Short term volatility ahead but hang on cuz it’s bout get fun!! SHAKEOUT OF WEAK HANDS BEFORE A FACE RIPPING RALLY!?!? LFG!!! DO YOUR OWN RESEARCH- NOT FINANCIAL ADVICE Joelthebowl- CFA
BITSTAMP:BTCUSDLong
by Joelthebowl
Futures Trading & Terminology ExplainedTrading futures is not for beginners and should only be attempted by experienced traders with a strong understanding of the market as a whole and especially a strong understanding of Risk Management & Trading Psychology. Below I have explained some of the Risks involved in Trading Futures: ------------------------- Liquidation When liquidation occurs your position is forcibly closed due to not having sufficient balance to keep your borrowed positions afloat. When trading futures on high leverage, your losses can quickly reach double digit percentages and if they exceed the remaining balance in your account you can be liquidated. ------------------------- Leverage Leverage, or to be leverage refers to the act of borrowing money off the exchange to trade. When a trader has insufficient balances to cover their leveraged position left in the account a liquidation call can occur. Keep track of your margin ratio and keep it low to prevent liquidations, and use risk management techniques. ------------------------- Volatility Market volatility can be high in emerging markets, and many traders love volatility for its big swings to profit, but in futures trading considering losses are potentially heightened by leverage volatility can become a dangerous thing to a trader. In volatile markets market stop losses can often trigger much further than the triggered price adding to losses, or even resulting in liquidation. ------------------------- Stop Hunting Stop hunting occurs when large entities such as corporations, or “Whales” purposefully target the stop loss orders of traders, knowing that at these areas when a large amount of orders is triggered a contrarian position can be acquired by these entities by buying or selling into a large stop trigger event, by doing this they can easily buy or sell a large amount of an asset when also having very little affect on the price in the short term. ------------------------- Exchange Downtime During extreme market movements sometimes exchanges can crash and traders are unable to login, close or open positions on the exchange, Liquidation events, Market Crashes, Manipulation, Volatility, Stop Hunting may all come into play when Exchange Downtime occurs and it is a risky endeavor to be positioned in borrowed money when a exchange is offline. ------------------------- Market Crashes Market Crashes, Black Swan Events etc. can occur frequently in emerging markets, infrequently in traditional markets. During Market Crashes huge cascades of liquidations can occur taking out over leveraged long traders. ------------------------- Manipulation Stop Hunting is also a form of Market Manipulation. Sometimes vested interests work together to hold down the price of an asset or push up the price to trigger orders, and shake out retail players. ------------------------- Overtrading Due to the heightened losses applicable from borrowed money, overtrading on futures/leverage can quickly wipe out your balance, it is key that you understand how to size your trades correctly as well as managing your risk and mental state to avoid this occurring.
COINBASE:BTCUSDEducation
by Worth_The_Ri5k
BTC: dont be stupid and be patient!Bitty is gonna come down because: - Too much longs are still open (opened by traders at lower levels) so they need to be wiped out - BTC futures expiration this Friday, pain is at 53-54K even though 58K is stated as max pain price - Market is still too optimistic, we need more fear for a reversal and that fear is about to come - You are still opening longs because you think there's a double bottom... Stay patient, go do something with your life instead of staring charts all day. Come back on Friday morning and we can trade again. Take some days off, nothing is happening here apart from traders getting rekt. That's the harsh truth of these markets. IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.
INDEX:BTCUSDLong
by cryptobullethbtcxlm
6
ETH still in a downtrend till FridayEthereum is still finishing its last lag of its ABC move to the downside with a C move incoming that might hurt some leveraged traders out there. With futures expiring this Friday it would make sense for ETH to trade lower than its current price levels. My(!) max pain price based on info I have would be around 3850. So I expect ETH to be around that price point on Friday afternoon after finding support in the lower order block (yellow). If however, ETH holds in the upper order block or above this scenario is invalidated. Keep an eye on the bear flag break and the price action in the order blocks. This last move is a shake out for the leveraged traders and options traders and will scare the market into bearish sentiment and thus the perfect time for the market maker to step in to reverse the trend for (possibly) a move to a new ATH. IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.
Long
by cryptobullethbtcxlm
12