A Safer Approach for New Traders
Start with Spot Trading:
Spot trading is simple and carries lower risk. You are directly purchasing assets without worrying about liquidation or margin calls.
It allows you to learn market dynamics and build discipline without the pressure of leverage.
Use Low Leverage (2x to 3x):
If you must use leverage, limit it to a maximum of 2x or 3x. This reduces the risk of liquidation and provides more breathing room for market fluctuations.
Set Stop-Loss Orders:
Always set stop-losses to limit potential losses. For example, set your stop-loss 2-5% below your entry point based on your risk tolerance.
This ensures you exit losing trades early and preserve your capital.
Risk Management:
Never risk more than 1-2% of your total capital on a single trade. This way, even if you incur losses, your overall portfolio remains intact.
Lesson: Focus on Persistence, Not Quick Profits
Trading is not a get-rich-quick scheme. The key to success lies in capital protection and sustained growth. High leverage may provide the thrill of big returns, but for inexperienced traders, it often ends in disappointment and financial loss.
By starting with spot trading or low leverage, and always using stop-losses, you can build skills and confidence while protecting your hard-earned money.
Remember:
It’s better to grow your account slowly and steadily than to lose everything in one reckless trade. In trading, discipline and patience always outweigh greed and impulse.
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