What is Leveraged Trading? What is the Secret to Winning in Leveraged Trading?
To explain Leveraged Transactions (Futures or Futures) in the best possible way; If you do not open a transaction with the right strategy and psychology, your money goes to zero, and on the contrary, serious money is earned when opened and managed with the right strategy and psychology.
So how to proceed?
For example, let's say you open a long transaction in BTC with $ 100 and 100x leverage. When the price of Bitcoin rises by 1%, you double your money, or conversely, if Bitcoin falls by 1%, your money is reset to zero. That's why high leverage trades should not be carried for long periods of time.
Let's give an example from a lower leverage; For example, let's say you open a long transaction in BTC with $ 100 and 10x leverage. If the Bitcoin price increases by 10%, your money will double, and vice versa, if it decreases by 10%, your money will be reset.
What is the Secret to Making Money in Leveraged Trading?
I have been trading with leverage on Binance for a long time and I may have lost thousands of dollars, but I have also gained much more. So pay attention to what I say!
Before opening your leveraged transaction, you need to determine your strategy well, that is, it is very important to determine in advance the saturation point at which you will take profit and close the position completely. However, it is very important to use your technical analysis knowledge to determine your stop-loss point and enter your stop order to open the transaction. To sum up, before opening a trade, it should be clear when to close that trade, when to take profit, when to stop, and you should follow your strategy exactly.
