since I started trading on bitmex again, I already was reminded of these following things:
DO NOT OVERLEVERAGE!
it is super easy to get overconfident and overestimate your chances.
It is horrible to get liquidated in a bad spot where it would have reversed afterwards.
Also if you loose your whole account, you might miss the real big moves you wanted to exploit with your greed completly.
DO NOT GO FOR SUPER SMALL MOVEMENTS!
If you think you are sure it is gonna not go up right now and go down 20$ before it goes up and moons, it is usually not worth going for, you might miss the boat, not get filled and then not be in position for the big move you are relative sure still is coming. I think it might make sense if there is a possibility it goes hard in that direction, but you would normally still close after 20$.
IN ALTCOINS, LEVERAGE EVEN LOWER!
altcoins have way higher variance itself and thin orderbooks so it can get ugly fast.
CROSS LEVERAGE IS DANGEROUS!
It is super easy to buy too much and get yourself in a shitty leverage without realizing it if you are used to
not trading it. Do not add if underwater when on cross leverage, that killed me twice.
LOOK OUT FOR FUNDING!
always have that in mind, usually with a big funding graph will pop after the funding
DONT SELL JUST FOR FUNDING!
even if you quickkly close after it, so is everybody else, it is usually not worht it.
AFTER HUGE LIQUIDATIONS, BE CAREFUL!
and pay attention, usually those big liquidation push the price unaturally up and then it retraces.
Yesterday there was a 6500 bch liquidation that was that big, it was not bought up immediatly, in this case the price moves higher and higher, shorting seems like a safe play if you see buying up of the liquidation speed up. (but also dangerous if oyu are wrong)
WAIT UNTIL IT REVERSES
usually I found it to be better to actually wait for at the very least of signs of reversal of a downtrend or even wait for some kind of breakout. Just because it hit some resistance, it does not have to stop.
BTC DOES NOT CARE IF YOU THINK THE DROP WAS CRAZY ENOUGH
aka do not catch a falling knife, just because you think it is so low now.
WHEN YOU DO HIGHER LEVERAGE IN ONE SPOT, DO NOT KEEP IT IN ALL OTHERS
sometimes it might make sense to go a bit higher leverage, because you have a tight stoploss and do not risk as much. I personally tend to then keep that high leverage just because you are now used to it and other stuff feels small even on longer term positions, ESPECIALLY if the high leverage trade went bad. I am a proffesionell poker player for 10 years and now this trap (taking shots) and still fall for this and talk myself into it.
In fact, I am 25x leverage right now and screw it, I am not closing it, we are going to the mooooon (jk, short atm.)
BTC DOES NOT CARE IF YOU THINK THE DROP WAS CRAZY ENOUGH
aka do not catch a falling knife, just because you think it is so low now.
WHEN YOU DO HIGHER LEVERAGE IN ONE SPOT, DO NOT KEEP IT IN ALL OTHERS
sometimes it might make sense to go a bit higher leverage, because you have a tight stoploss and do not risk as much. I personally tend to then keep that high leverage just because you are now used to it and other stuff feels small even on longer term positions, ESPECIALLY if the high leverage trade went bad. I am a proffesionell poker player for 10 years and now this trap (taking shots) and still fall for this and talk myself into it.
In fact, I am 25x leverage right now and screw it, I am not closing it, we are going to the mooooon.
All for now, I hope this reminds me in the future.
