FOMO of bull market
FOMO of bull market
So, I longed chainlink yesterday, with 10x leverage as market appeared so good. Now, there has been dump and my position got liquidated.
I usually go with 2-4x leverage, and that gives me safer liquidation price however this time I went with 10x leverage, as I thought bulls have arrived, and it’s only up from here, and you see how wrong that turned out.
Take whatever lesson you want. For me, it’s to stick with 2-4x leverage with which I tend to do good, don’t allow greed to enter.
Using too much leverage can lead to liquidation. For coins like Chainlink, it is good not to go more than 2x. The only coin that I can go up to 4 or 5x is bitcoin. But for altcoins, I go for 2x which I am still afraid of at times, especially if I want to open the position for a long period of time. Sometimes I prefer to just use 0.5x to 1x and not going beyond that.