Lets face it we all do it, we want that $btc quick and easy so what do we do...
LEVERAGE!!!
and what is the subsequent fallout of a leveraged position
ANXIETY, PANIC, SLEEPLESS NIGHTS (unless you get the optimum entry)
So if we are gambling in a mid range between supports and resistance how do we trade either direction and feel safe, or relaxed?
Its simple really... DO NOT USE LEVERAGE BEYOND YOUR SAFETY ZONE
But what is my safety zone? Lets look at the charts, we can see we have had a big candle, everyone is saying 3-6k but we want to long or even short it down further although some are saying 16k October - confusion??
So we look at the dailyo chart, and eye up some support and resistance zones.
Once identified we add the pivots to reveal P, R1, S1 etc.
Do those pivots line up with our S/R zones? yes
OK so when we make a trade we dont do 50x off the bat, instead we ease in to the trade.
So 1x... what is the liquidation engine prompting you, is the liq below/above the identified support/resistance zone... yes - enter trade
then 2x - still above below... add to position
3x
4x
etc etc
If you find you are 10x and your liq is above support (long) or below resistance (short) then reduce your position size or simply do not enter that heavy - easy right?
What we dont want is to be mid range going high leverage.. thats called gambling. Unless you have identified a strong/weak point of the market and you are certain of direction then trade safe, trade low lev and wait for confirmation.
When in profit move stop loss
...and always protect your capital.
Finally = Trade responsibly
LEVERAGE!!!
and what is the subsequent fallout of a leveraged position
ANXIETY, PANIC, SLEEPLESS NIGHTS (unless you get the optimum entry)
So if we are gambling in a mid range between supports and resistance how do we trade either direction and feel safe, or relaxed?
Its simple really... DO NOT USE LEVERAGE BEYOND YOUR SAFETY ZONE
But what is my safety zone? Lets look at the charts, we can see we have had a big candle, everyone is saying 3-6k but we want to long or even short it down further although some are saying 16k October - confusion??
So we look at the dailyo chart, and eye up some support and resistance zones.
Once identified we add the pivots to reveal P, R1, S1 etc.
Do those pivots line up with our S/R zones? yes
OK so when we make a trade we dont do 50x off the bat, instead we ease in to the trade.
So 1x... what is the liquidation engine prompting you, is the liq below/above the identified support/resistance zone... yes - enter trade
then 2x - still above below... add to position
3x
4x
etc etc
If you find you are 10x and your liq is above support (long) or below resistance (short) then reduce your position size or simply do not enter that heavy - easy right?
What we dont want is to be mid range going high leverage.. thats called gambling. Unless you have identified a strong/weak point of the market and you are certain of direction then trade safe, trade low lev and wait for confirmation.
When in profit move stop loss
...and always protect your capital.
Finally = Trade responsibly