WHY YOU SHOULDN'T TRADE ON HIGH LEVERAGE ⚡⚡ CHECK THIS OUT 👇👇👇 Pt2
THE FALL OF A BITCOIN TRADER 😭😭
ISAAC, a seasoned trader, had made a fortune in the cryptocurrency market. His confidence soared as his portfolio grew to $2.5 million, mostly from savvy Bitcoin trades. He was known among peers as "The Bitcoin King."
One fateful day, Isaac spotted a potential opportunity. Bitcoin's price had dipped to $40,000, and he predicted a sharp rebound. Eager to capitalize, he leveraged his entire portfolio, borrowing an additional $1.5 million to invest.
As Bitcoin's price initially rose to $45,000, Isaac's profits swelled. But then, unexpectedly, the market reversed. Bitcoin plummeted to $30,000, wiping out Isaac's gains.
Panicked, Isaac tried to liquidate his positions, but the market was too volatile. His brokerage firm issued a margin call, demanding an additional $500,000 to cover losses. Isaac was unable to meet the requirement.
The inevitable happened: his account was wiped out. Isaac lost $2 million in a single day.
The Aftermath: Isaac world crumbled. He couldn't sleep, haunted by the realization that his entire fortune was gone. His relationships suffered as he became withdrawn and isolated.
LESSONS LEARNED: 1. Overconfidence: He underestimated market volatility. 2. ***Over-leveraging****: Borrowing too much amplified his losses. 3. Lack of risk management: No stop-loss orders or hedging strategies. 4. Emotional decision-making: Fear and greed clouded his judgment.
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WHY YOU SHOULDN'T TRADE ON HIGH LEVERAGE ⚡⚡ CHECK THIS OUT 👇👇👇
Risk of Significant Losses: 1. Amplified losses: Leverage multiplies both gains and losses. 2. Margin calls: Brokerages can liquidate positions if margin requirements aren't met. 3. Wipeout risk: High leverage can wipe out entire accounts.
Emotional and Psychological Strains: 1. Increased stress: High-leverage trading can lead to anxiety and emotional decision-making. 2. Fear and greed: Leverage amplifies emotions, clouding rational judgment. 3. Sleepless nights: Constant market monitoring can affect mental health.
Lack of Control: 1. Market volatility: Unpredictable price swings can quickly erase gains. 2. Liquidity risks: High-leverage trades can be difficult to exit. 3. Black swan events: Unforeseen events can devastate highly leveraged portfolios.
Overconfidence and Complacency: 1. False sense of security: Leverage can create illusions of success. 2. Overextension: Overconfidence leads to over-trading and excessive risk-taking. 3. Complacency: High-leverage trading can breed complacency, neglecting risk management.
Remember, high leverage can be a double-edged sword. Prioritize caution, risk management, and sustainable trading practices.
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Due to whale manipulations, 90% of people lose all their savings.
Understanding market manipulations is what separates winners from losers.
Many will charge $1,000 for this info, but not me.Here's a 🧵 on how whales take money from ordinary people and how to avoid their traps 👇
① Faking the patterns: Whales create chart patterns by buying at resistance or selling during bounces. These manipulated patterns mislead retail traders who rely on them as market indicators, creating false levels and influencing market direction.
② Stop loss hunting: Whales identify clusters of stop-loss orders at key price levels. They then drive prices toward these levels by executing significant buy or sell orders, triggering the stops and causing rapid price fluctuations.
③ Range manipulation: Whales reduce their entry price by pushing prices, causing some traders to exit at a loss.Consolidation phases usually end after 4-5 touches, breaking the top or bottom lines.If the price hits a breaking point but then reverses, it's likely manipulation.
④ Fair Value Gap (FVG): FVGs occur from intense buying or selling, leading to notable price shifts and chart gaps. After a good pump, prices usually does a pullback, benefiting major players and prompting latecomers to exit positions.
⑤ Stop runs: Large players push prices past critical support or resistance points to trigger stop orders, creating cascading movements. They then swiftly reverse within the range, capitalizing on stop liquidations and catching traders off guard.
⑥ Wash trading: Wash trading is a market manipulation technique where traders artificially inflate an asset's value by increasing its trading volume. A wash trader typically moves crypto between wallet addresses or exchange accounts they control to create the illusion of high trading activity and demand.
There's a lot more which I'm coming later to explain , just hit the follow bottom so you don't miss out and share also thanks 👍.
Why #Catizen Airdrop is the most likely heir to the #Notcoin throne, Pt2 👑
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IRAN OPENED BITCOIN SHORT AT $70K AND ANNOUNCED ATTACK, BTC DUMPED TO $60,600, IRAN CLOSED THEIR SHORTS & BOUGHT BITCOIN, ANNOUNCED MISSION IS CONCLUDED AND PUMPED BITCOIN TO $65K. NOW THEY ARE WAITING FOR BTC NEW ATH.