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Leverage

Dynex - where to next?Thanks for viewing, Wow, some interesting keywords in their business description; - LEVERAGED buyer of CMBS products (as you know, leverage works both ways. To juice gains or to ensure out-sized losses), - ADJUSTABLE-RATE mortgages (I suppose not so bad - unless interest rates increase which to be fair seems unlikely right now), - office buildings, retail, hospitality, and healthcare (all sectors hit super hard by the current health crisis. Healthcare because everyone is cancelling elective procedures - where all the money is made). Default rates of CMBS products above 10% in June 2020 www.cpexecutive.com but have reduced somewhat in the 2 months following. I'm sure that is good news - unless the reduction was due to "forbearance" - when banks just allow a break in payments of overdue accounts (no chance of a debt default if you don't call in your debts). Around half of the increase from ~2 to over 10% delinquency was from mortgages over 90 days overdue and at least part of the decline was due to banks deciding not to require payments (for some undetermined amount of time). Its like 2009 again - just replace CDO with CMBS and residential with commercial property. Asset backed securities are great - unless the value of the underlying asset declines significantly - which it has. I don't know where it will go, up down or sideways All I know is it is in a down-trend and the return in no way reflects the massive risk. It seems tailor made to get flattened by the current environment.. AVOID AVOID AVOID. Or buy, its up to you. Maybe the Fed will bail it out.
NYSE:DXShort
by flyinkiwi10
Bitcoin elliot wave ABC correction next?Recently we been playing the long game, yet is it time for people to suffer? Longs have dumped today and shorts are recovering drastically, yet bitcoin trends sideways. On market close bitcoin pumped to 11300 a target I had as a mid ground or fair value of a pump to these levels, yet at the same time we created a cme gap. I know we didn't fill the last one, yet since we are so close to it wick down the candle isn't out of the realm of possibilities. News -White house released a new package of 1.8trillion dollars, yet over the weaken Nancy rejected it (probably political so the dems can run on republicans not giving enough). Has the market factored in no stimulas? Well no it factored in when trump said no stimulus, yet was greeted with we will try next week. WIth Nancy rejecting the new one it is possible on market up we could see the dump. TA -Elliot wave as you can see on the pump looks like a classic pump of the 1,2,3,4,5 elliot wave with a correction of a 1,2,3 or a,b,c on how elliot waves work. -MACD looks like it was to turn over bullish -50EMA had held us at support, yet the range of 11272 is our support line that we got inchs away. -RSI is heading to overbought and is in a downtrend. If RSI can't hit 63.88 or hold above 48.50 we are bearish. Final thoughts Taking a small short now may be the play atm for a correction, yet it is uncertain if you want to take the risk if you believe the global markets don't give a dam or you don't care about cme gaps. I'm taking a small portion of my btc to take that risk with a low risk, yet high reward play.
COINBASE:BTCUSDLong
by nathanielx9
1
Trading Psychology: Over Leveraged Trading Hello traders: Welcome back for a quick educational video on over leveraged trading. This ties with Trading Psychology greatly, and I want to elaborate on this a bit more to give new and experienced traders my understanding on this topic. It's important to know that leverage can work for you as well as against you. You may already hear this a lot when you open a new broker account. However, it's only when you actually start trading then you will understand the true meaning of this. When you enter a trade with leverage, you are entering with a great risk behind if you don't have proper risk management. Since leverage is a “double edge sword”, trades that are in profit or losses will be magnified. You are easily over traded, meaning you can have multiple entries on the same pair or same move/run. Again, this would be nice if the trades are going in your favor, but if not then you are going to have a huge drawdown of your account. Professional traders understand drawdown is evitable, but they also minimize it so when they are in profit, they can easily make the drawdown backs. Let's take an example of what an over leveraged trading combine with trading psychology could look like: ---enter a trade, and with a big position (no risk management, and not consistent with trading plan) ---begin to see price fall, then either he/she will have a SL and get taken out, or no SL then price will continue to drop then the small account is gone in no time due to the big position. ---If he/she did have a SL, then they are taken out, but just lost a bigger % of their account. Now the emotions kick in to try to “chase” the money back. So revenge trading emotions start. ---Because the account has high leverage, the person can easily open a bigger lot position, double the previous one in fact (same strategy out there says to do this) and make back your losses. If first trade was risking 5%, then this next trade is 10%) ---After several losses, the account is already cut in ½, and he/she can no longer open the high lot positions. ---They will then reduce their position size, but still at maximum leverage allows. ---Soon the account will get blown out, and the person will either blame the market, strategy, lesson and more. I see this cycle of trading all the time in new traders, and it has a combination factor such as emotion, mindset, risk management, trading plan and more. But what is easily controlled by you is to reduce leverage allowed on the account. Simply dropping it down to less leverage will help the trader to not over leverage, and maintain a few trades only with smaller position sizes. So, I encourage the new traders to really think about this topic and reflect on yourself to see if you ever fall into this cycle before. You may not blow your account, but certainly have experienced revenge trading and over leverage trade when the emotions kick in. I myself included it at the beginning of my trading journey also. That is all I gotta say on this one. Let me know if you have questions and feedback :) I will chat with everyone next time in my live stream. Thank you
OANDA:XAUUSDEducation
by jojofang0901
24
Bitcoin remaining stongBitcoin is in an uptrend, yet volume and volatility is still nowhere to be seen. News -None TA -Volume is picking up since last night and bitcoin is an uptrend, so curiosity is striking this market. Volume on the weekend for BTC is dropping and is down over 1000 btc since last weekend. Expected big move to coming -RSI held our position at 48.50 and is making progress to hold above 63.68. If we can surpass 63.68 we could move higher with our first test at 10768 and than 10931 -MACD is bullish with no roll over in sight. -We did hold the hourly 50ema and is string to hold the 10643-10678 range. If bulls can hold it we have a high chance to go fight for 10931. If we take down that wall we will head towards 12k Final Thoughts My 50x long is up 58% and I'll be holding with the hourly still bullish. I think its risky to short or long atm, but the volatility is slow low you could make some quick trades. Volitily is suppose to come back soon with target date of Oct, 6 with fair value of btc is 10700s.
COINBASE:BTCUSDLong
by nathanielx9
3
Bitcoin dump was expected?Now its werid to say if Bitmex has had anything to do with the price of bitcoin and let me give the reason in todays bitcoin TA. News -BitMex is getting served due to not complaining with AML/KYC of US customers. They stated their exchange will continue to run during the time being. -Stimular Bill is suppose to get ann before the elections TA Now looking at the chart what do we see? -RSI: Now as you see the RSI has two lines. One at 48.50 and one at 63.68. These I have notice if Bitcoin can hold aboe 48.50 we can suspect bullish movement, yet if we pass or hit 63.68 we will reject to the downside. Todays news happen to be at the 63.68 zone which resulted in downward movement. It's something that should be looked into futher and may help your leverage trading. Based off the RSI we can suspect a bounce back tonight hitting the target of 10643-10678 to regain control of the bullish movement. -MACD is bearish, yet a crossover is being built. -There is high buy volume, yet going onto tradinglite we can see theres more buyers even if the price drops buyers are buying up to 20-100+btc a candle stick -EMAs are turning bearish, yet tbh this news might be a little oversold Final thoughts Remove most of your bitcoin on leverage exchanges for US due to the recent news cause "Not your keys, not your bitcoin" and you might be subject to losing all your money. Also I lean towards a bullish aspect on bitcoin in the short term and why I'll leverage a 50x at this level since the news is still being developed but also it looks oversold.
COINBASE:BTCUSDLong
by nathanielx9
All eyes on the DOWToday I'm talking about the DOW cause there is a strong correlation between Bitcoin and the Global Markets atm. The DOW has made significant gains after a brutal last week, yet are we out of the woods? News -Presidential debates will take over the market until after the election TA Now Lets start of simple and wanted to say I wanted to show the 5min time frame but trading view said no, so I'll try to do my best to describe what I see even though with the high volatility that is about to happen the 5min time frame is what investors should be watching up too the election. -As of now the Dow has created a lower high after breaking out of our brutal downtrend, yet BTC took hits but is ultimately going sideways with higher swings of volatility depending ona .02% in the DOW. At the same time the DOW is creating lower highs which will result in more selling pressure going into the election. -You can see some blue circles, these repest similarties in past and present price action. This could result with a 200+ point move in the DOW, with give a 500+ point correction hitting a PT of 27696 roughly high and a 27138 low, with more movement lower next week -MACD is trending up looking for more bullish price action. -RSI is overbought showing the market could be nearing its end of a short term bull run Final Thoughts Best play is to take profit when you are in the green and don't be greedy. A recovery during heated debates could cause damage on short term trading accounts or looking for quick gains. Also quick note alot of rumors are going around that Oil will dump pretty soon and will happen before the market dumps, so watch for futures in Oil.
U
by nathanielx9
Liquidation Levels Trading FuturesI've seen lots of people getting liquidated on there longs on this BTC dump. This is why I think people never take into consideration risk management or don't know how it actually works. Maybe this can help a lot of people and help them clarify things. YES, the getting rich quick by leveraging is a probability, but if you ask me, I would consider it luck in the 25x to 100x than in lower leverage positions. I think the getting rich quick scheme in crypto or FX is never talked enough and should always be addressed with proper risk management. This analysis is considering you long your whole portfolio with leverage (which most people do). If you want to long with high leverage, use 1% or 2% of your portfolio, try it out in Isolated mode first and see what it is all about. Your losses will teach you how to be a better trader, but never ever lose your ammo in your first try. I'll do a follow up of this chart with potential gains by leveraging.
Education
by Goldenperro
DXY price moving up. Creating short Opportunities on Crypto.618 As DXY seems to have possibly found bottom coming into this weeks trading session. We can can start to see the correlation between its price and bitcoin or entire crypto market actually. Created short opportunities for a low lev short with tight stop loss as we possibly swing down to close some gaps on Bitcoin. Keep s/l tight on your crypto shorts bc we have the ichi cloud and .618 before DXY confirms a true break out. DXY pushes past those then we have a serious problem degen family. Neutral until confirmation. Stay safu
TVC:DXY
by RektYoshitt