One of the most significant errors during a bull market is concluding the cycle with a net loss due to excessive profit expectations. This outcome is highly probable when engaging in leveraged trading without adequate risk management.
During a bull run, blue-chip assets may rise from local lows to new all-time highs. For instance, a $100 investment in NEAR at $1 could appreciate to $5, yielding a $400 gain.
However, entering futures or leveraged positions—which involve borrowed capital—introduces additional challenges: accurately forecasting price fluctuations and volatility prior to a breakout is difficult. Premature liquidation may occur before the anticipated move materializes.
Consequently, investors should carefully evaluate leverage and implement robust risk controls before proceeding. $NEAR
During a bull run, blue-chip assets may rise from local lows to new all-time highs. For instance, a $100 investment in NEAR at $1 could appreciate to $5, yielding a $400 gain.
However, entering futures or leveraged positions—which involve borrowed capital—introduces additional challenges: accurately forecasting price fluctuations and volatility prior to a breakout is difficult. Premature liquidation may occur before the anticipated move materializes.
Consequently, investors should carefully evaluate leverage and implement robust risk controls before proceeding. $NEAR