When$BTC market move upside fast we face FOMO(fear if missing out).why? We wanted to participate the rally to make a fortune .If I m not wrong every people who desperately need money will fall under market psychological turbulence. If you have 100$ you want to make a handsome return by taking a long position with high leverage like 20×,30× even 100× somebody even uses 200×.
When it goes in your favour absolutely going to make a money like 1% move positively if you took 50× leverage you are going to make 50%.what about if it turn against you?youre half of the capital in trouble.then FEAR comes you will square off with panic.right?
Then sleepless nights follows .so take 2× or 5× maximum leverage .if you want to increase return increase initial investment amount not the leverage.bitcoin is a heavy volatility asset.turbulance is unpredictable.
What big players do opposite to you the invest $100000 to $100 million they put on trade they don't go beyond 2× leverage.because they know how will it go.their big investment or trade going to give handsome return even if their ROI% is small.their initial capital is large.thats why they survive for long time.