As a beneficiary of ethereum's flash crash on GDAX, my advice would be the following:
1 - do not trade on margin (unless you accept the risk ~ I do not)
2 - do not enter your stop losses (limit sell orders)
If you fear volatility, I would recommend taking some profits off of the table, and also entering limit buy orders at very cheap prices. This is what allowed me to get into ethereum at cheap prices during GDAX's flash crash.
Your drawdown is much higher, the pain of loss is multiplied. While you might show a profit and benefit from a multiple of leverage, it almost always goes against you instead.
There are very few "sure things" in the trading world. The only "sure thing" about margin trading is a lot of those traders go flat broke. This is why futures trading requires an up-front collateral asset, like a T-Bill or excess of funds over your trading balance.
Beware of periods of low volatility as well, as that can be the calm before the storm - and that storm can blow up a highly-levered portfolio.
As a beneficiary of ethereum's flash crash on GDAX, my advice would be the following:
1 - do not trade on margin (unless you accept the risk ~ I do not)
2 - do not enter your stop losses (limit sell orders)
If you fear volatility, I would recommend taking some profits off of the table, and also entering limit buy orders at very cheap prices. This is what allowed me to get into ethereum at cheap prices during GDAX's flash crash.
Its extremely rare.
Trading on margin is always a huge risk.
Your drawdown is much higher, the pain of loss is multiplied. While you might show a profit and benefit from a multiple of leverage, it almost always goes against you instead.
There are very few "sure things" in the trading world. The only "sure thing" about margin trading is a lot of those traders go flat broke. This is why futures trading requires an up-front collateral asset, like a T-Bill or excess of funds over your trading balance.
Beware of periods of low volatility as well, as that can be the calm before the storm - and that storm can blow up a highly-levered portfolio.