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mlemes1
Apr 26, 2021 6:28 PM

Be carefull about leverage in crypto guys! Short

Bitcoin / U.S. dollarBitstamp

Description

This is a good example of when leverage can be dangerous.
Comments
MiniTrader1111
ok, I will be careful, but what this means?
ianrdouglas
How do you mean? It just looks like shorts closing.
mlemes1
@ianrdouglas, You are right... but if you bet short you were stopped. Also there is a bunch of guys out there that play leveraged without stop loss. Agree?
ianrdouglas
@mlemes1, What I mean is shorts meeting their targets. Many would short from 51.1 down to the close of the last major bearish candle, at around 47.6. But for those who had lower targets, or who piled in late, yes, the bounce from other shorts closing, and longs opening who bet on the bottom, might return them to zero and stop them out, adding to the bounce.
mlemes1
@ianrdouglas, I agree. If you were short in a lower timeframe it was not a big deal. Thank you for your comments.
ianrdouglas
@mlemes1, Yes, many play without stops. Sometimes it's the only way to hold in a winning trade.
mlemes1
@ianrdouglas, but I got your point and you are right... BTW nice analysis on your page.
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