Everything I KNEW about leverage in Trading was WRONG❌️ the moment I discovered how to position size properly !!
High Leverage = High Risk is a Myth ??
Position Sizing Is all That matters ??
There's only one way to find out !!
A Thread on Position sizing 🧵🪡 , follow me
High Leverage = High Risk is a Myth ??
Position Sizing Is all That matters ??
There's only one way to find out !!
A Thread on Position sizing 🧵🪡 , follow me
What is leverage firstly
Leverage to me is simply a tool that give traders the opportunity to control higher positions whilst trading that ordinarily their account size would not control on a normal day
Say to say,A Trader who trades without lev has his entire margin active
Leverage to me is simply a tool that give traders the opportunity to control higher positions whilst trading that ordinarily their account size would not control on a normal day
Say to say,A Trader who trades without lev has his entire margin active
On a trade
Whilst a trader who uses lev has only a portion of his trade margin magnified by the leverage to look Like his entire margin active on a trade per time
If Trader A with 0 lev can open a position size with $500
Trader B on a 100x lev can open same equal position with
Whilst a trader who uses lev has only a portion of his trade margin magnified by the leverage to look Like his entire margin active on a trade per time
If Trader A with 0 lev can open a position size with $500
Trader B on a 100x lev can open same equal position with
$5 this time
Simple maths (Position ÷ lev = Margin required) 500/100 = $5
Now that's out of the way..
People tend to criticize high lev trading so much, calling traders who use it out as irresponsible or gamblers , but this isn't necessarily true if you have knowledge of PS
Simple maths (Position ÷ lev = Margin required) 500/100 = $5
Now that's out of the way..
People tend to criticize high lev trading so much, calling traders who use it out as irresponsible or gamblers , but this isn't necessarily true if you have knowledge of PS
Position sizing is a method of predetermining your risk & Reward per trade without necessarily keeping into account your leverage
And trust me some persons would be shocked by what they see in this Thread
So How do I Position size ??
For this we'd be using TV & an Exchange
And trust me some persons would be shocked by what they see in this Thread
So How do I Position size ??
For this we'd be using TV & an Exchange
TV is trading view pls😅 not television
Allow me to guide you
First you need to have a setup you want to trade & you also need to have good knowledge of RR calculations
It's quite a simple maths don't stress
We'll be using LTC as our setup example for today
Allow me to guide you
First you need to have a setup you want to trade & you also need to have good knowledge of RR calculations
It's quite a simple maths don't stress
We'll be using LTC as our setup example for today
From the position tool you can see Clearly that the setup is a 7RR setup & that our account size for this example is $100
The next thing you want to do is tap on the position tool inorder to fill the necessary details of our trade position on our position tool
The next thing you want to do is tap on the position tool inorder to fill the necessary details of our trade position on our position tool
For the 7RR trade
I'm risking only $5 , which means I'm putting $5 on the line incase the setup goes south
Read the picture below and if you don't understand still follow through
After you've agreed on a risk to take, all you need to do is input your acc size & Risk in USDT
I'm risking only $5 , which means I'm putting $5 on the line incase the setup goes south
Read the picture below and if you don't understand still follow through
After you've agreed on a risk to take, all you need to do is input your acc size & Risk in USDT
Now because this is kinda complex to show with pictures
I have made simple videos to walk you through it
First you need to understand how I determined my reward from a simple RR calculation ⬇️
I have made simple videos to walk you through it
First you need to understand how I determined my reward from a simple RR calculation ⬇️
Second is a Clear Input & Execution of our 7RR trade using the information from our position tool
& everything just works like Magic
& everything just works like Magic
Let's say we still want to switch our risk up a little or double it up
We still can use same calculation to determine our Reward on the trade !
We still can use same calculation to determine our Reward on the trade !
Finally
Let's sum it all up there
So next time you see someone printing 1000% plus on 125x lev don't necessarily think they're gamblers, their % ROE might be higher than a person with only a 100% ROE , but as long as their RR & Risks are they same, they still made same amount
So next time you see someone printing 1000% plus on 125x lev don't necessarily think they're gamblers, their % ROE might be higher than a person with only a 100% ROE , but as long as their RR & Risks are they same, they still made same amount
I hope that's cleared now ?
And if that isn't still understood by you
Here's also a Thread from @Starr_gael below saying same thing to help you understand better ⬇️
And if that isn't still understood by you
Here's also a Thread from @Starr_gael below saying same thing to help you understand better ⬇️
And here's also a Thread from @neehyeehwah hammering on same thing
If you did get enlightenment & Clarity from this thread
Follow me @Techriztm for more & plsssss don't forget to like & Retweet for others to see
I'd be reading your comments for questions & contributions
This is 1/3 for this week so it's important you're following
Follow me @Techriztm for more & plsssss don't forget to like & Retweet for others to see
I'd be reading your comments for questions & contributions
This is 1/3 for this week so it's important you're following
Twitter is a vast library of knowledge & these are amongst the few elite traders you can never regret following
Their handles👉 @Alh_Myke1 @ProsperoApril @Starr_gael @Kelvintalent_ @thissdax @_Krypto_Khan @TraderRozay @dnatechbro @CharlesAk_son @_InvestorBen @neehyeehwah
❤️❤️
Their handles👉 @Alh_Myke1 @ProsperoApril @Starr_gael @Kelvintalent_ @thissdax @_Krypto_Khan @TraderRozay @dnatechbro @CharlesAk_son @_InvestorBen @neehyeehwah
❤️❤️
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