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RE: Steemit Crypto Academy Contest / S13W6 - Leverage In Cryptocurrencies

in SteemitCryptoAcademy10 months ago

Greetings friend,

But, let's be real here, just like surfing., it's not without risks. If the market tide turns against you, those losses sting more cuz they're tied to the larger borrowed amount.

This is so true, just as leverage has the potential to boost or amplify a trader's gain it can also do so for their losses. Therefore, it is important to implement effective risk management techniques, such as setting stop-loss orders, using proper position sizing, and adhering to risk-reward ratios and regularly review and adjust your risk management strategies as needed.

By doing can help traders mitigate the massive losses that accompany leverages. Remember, someone who doesn't know how to swim or is not prepared enough but goes surfing will die of drowning someday.

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