My First Leverage Play - BNB
Just took my first leveraged position of my life! I took a 13x long position in BNB when it was at $433.5. I made it 13x because the peak of my risk tolerance for the position was 15x and 13x is supposed to be an unlucky number, but I no longer believe in luck...
And........
It is currently going about as well as every other time I've gotten involved with anything related to money haha:
I'm enjoying some wonderful 12% unrealized losses in my first hour having the position open. I understand all the Wojak memes about getting absolutely destroyed by liquidation as it heads that way instead of providing gains.
I'm not being stupid here, I put a very small amount of money in to try to get some experience in doing it and I am actually not willing to sell unless my target price of $450 is hit. I have set a limit sell at that price. For me, this little experiment will either end with nothing, or with a 50% gain depending on what way the markets decide to go. I'm willing to lose what I've put in and that is something that is incredibly important as we don't want people losing significant amounts of money to bad market fluctuation.
I believe that at the end of this experiment, even if I make some gains, I will still know that holding and stacking is the best long-term play to investing in cryptocurrency. As exciting as leverage trading is, one bad trade can really mess you up even if you've had 10 successful ones before that point.
Human psychology tells us that as we have increased holdings, we will be wanting to make larger plays in the markets. Someone holding a million dollars is statistically unlikely to be investing $50 in one of their trades. Make sure that as you make successful plays through whatever strategies you use, that you adjust your risk tolerance to match the amount of money you are risking and how important that money is to your livelihood.
I will keep you all updated on whether I make any money with this, but basically if you see BNB hit $402, I lost. If you see BNB hit $450 before that happens, I won. Either way, I'll be continuing to stack with profits and any extra money I have. If I make gains with this trade, I'll be buying Hive to power up and use!
Not financial advice, make sure you know what you're doing before you do it!
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Who I am:
My name is Rob and I am a prospective law student with interests in cryptocurrency and blockchain. I have enjoyed my time thus far engaging with Web 3.0 and am looking to continue learning more and sharing what I learn through my experience
