$BTC $ETH $BNB If you have just $20,000 to play
with and are considering using 100x leverage, take a moment to understand the
three hidden "buttons" that control your fate before you dive into
the market.
First Button: Risk Level
100x leverage might look tempting,
but it's mostly a marketing gimmick. The real key is controlling your risk, and
here, the lifeline is a 2% risk.
If you increase your stop loss to
5%, you're already pushing the limits, and beyond 8%, you're essentially
swimming without a life jacket.
Here's the math: if you set an 8%
stop loss and use 10x leverage, that's an 80% loss on your account if
things go south. One bad wave could wipe you out.
If you want to use higher leverage,
you should also shorten your trading time frame. But even 15-minute candles
move so fast that they could leave you dizzy—professionals struggle to keep up,
so be honest about your ability to handle that speed.
Second Button: System
A “system” isn't just about some
indicator like the MACD golden cross—it’s about creating a structured plan and
sticking to it.
Set clear entry, exit, and stop loss
levels. Treat them like phone alarms, and don’t let your emotions get in the
way. Your system needs to be automated, with your fingers doing the work, not
your emotions.
You’ll need to run this system
through several market cycles to perfect it—expect to lose a good chunk of your
principal (around 90%) in the process. So, throwing huge sums at the market up
front is a fast track to handing over your tuition for the next several cycles.
The right approach is to start with
small amounts, cash out when necessary, and build up gradually—just like leveling
up in a game. Don’t risk it all before reaching a solid foundation.
Third Button: Execution Power
Remember the lessons from the 519
crash, Luna, and FTX? Those were all big wake-up calls. A stop loss is not just
a number; it’s a commitment to admit defeat and walk away when you need
to.
The biggest danger is thinking,
"It’s dropped so much, it has to bounce back." The market
doesn’t care about your hopes or feelings. If you wait for a reversal that
never comes, you'll just end up watching your account burn to zero.
Markets don’t turn around because
you deserve a recovery. Liquidation is part of the game’s daily routine,
and you need to be prepared to exit before it gets to that point.
If you can't manage these three buttons,
it’s best not to get into the game at all. But if you do decide to dive in,
follow these five rules:
Risk only what you’re willing to lose—don’t bet more than $20,000. If you’re not okay with
losing it, don’t risk it.Limit leverage
to 2-3x—higher leverage equals higher risk, so keep it controlled.Focus only on daily charts—no micro-managing on short time frames.Avoid increasing positions—keep your strategy simple and don't overextend.Cut losses fast—be
ready to walk away when needed. Don’t hope for a miracle.
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