“I always end up getting liquidated due to margin trading and being greedy…”

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Hello,

I’m Myungseok [name] from South Korea. I happened to come across your book and I’m one of the people who really enjoy trading. I also find your podcasts very interesting. Even though I’m not fluent in English, I find them more informative and useful than many podcasts from the U.S. or YouTube. Of course, I lost all the money I borrowed, around 30 million won, due to margin trading, which was a terrible experience.

I have a question, so I’m sending you an email. I read the book, but there was hardly any mention of leverage, just advice based on situations. Could you please explain more about this?

I always end up getting liquidated due to margin trading and being greedy, so my money doesn’t grow.

Currently, I have a portfolio allocation of 60:40:
60 consists of mostly dividend stocks like Hyundai Motors and half-half with Bitcoin trading
40 consists of holding dollars (cash) and Bitcoin spot

I started Bitcoin futures trading with $676 on January 2nd, with a +2.47% return in January, +36% in February, and currently at +58% in March. Now $1087

I have been steadily reinvesting profits to increase the quantity. Of course, I’ve also taken losses by shorting against my principles due to greed and speculation. Now I understand the importance of holding profits for the long term. Thank you.

Now, back to the main point, I’m curious about how to handle leverage. Personally, I’ve decided on a maximum of 2.5x leverage for long positions and 1.5x for short positions, considering the downside risk. I understand that leverage is subjective, but I’m wondering if there’s any common wisdom on this.

네이버.

If you want trend following the links below will get you started. Leverage is part of the plan from the ground up, not some one tip I can give.

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