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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.
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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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