🛑 Stop Getting Liquidated: The Golden Rule of Leverage
Are you tired of seeing your margin hit 0? Let's talk about the unwritten law of Futures trading:
"The longer you hold a position, the LOWER the leverage you should use."
Here is the cheat sheet based on your trading style:
1️⃣ Swing Trader (Days/Weeks)
🔹 Leverage: 3x - 5x
🔹 Why? You need to survive daily volatility. Crypto can drop 15% in a day.
⚠️ Danger: If you use 20x here, one normal market correction wipes you out while you sleep.
2️⃣ Day Trader (Intraday)
🔹 Leverage: 5x - 10x
🔹 Why? You are watching the screen. You can react to reversals. The target profit is moderate.
3️⃣ Scalper (Minutes/Seconds)
🔹 Leverage: 20x - 50x (🔥 High Risk)
🔹 Why? Targeting tiny moves (0.5% - 1%).
⚠️ Requirement: You must be glued to the screen. Never leave a high leverage trade unattended!
💡 THE GOLDEN FORMULA (Save This!)
How do you calculate the maximum safe leverage? Use this math:
Max Leverage = 100 ÷ (Your Stop Loss %)
Example:
If your technical analysis says your Stop Loss is 5% away from your entry:
🧮 100 ÷ 5 = 20x Max Leverage.
If you use 50x leverage with a 5% stop loss distance, you will be liquidated BEFORE your stop loss is even hit. Don't donate your money to the market!
#tradingtips #zec