You Can Short Trade Without Using Leverage.
When you borrowed funds to make trades, in other to profit bigger is leverage.
Using 5x leverage means, multiplying your trading capital by 5. $100 capital turns $500 on 5x leverage.
Wow, this is cool right?
Any profit/loss will be calculated from the '$500' and added/deducted from your real capital $100.
Short trade 'go short'. You borrow an asset and sell it, you wait for the price to go lower, buy same asset (at a lower price), make profit and returned the borrowed asset.
So in a short trade, you're predicting the price to go lower and taking action to profit from your prediction.
Back to the main topic.
If we're told to 'trade with the trend', and we're cool with it.
A bullish market = Uptrend.
A bearish market = Downtrend.
In a bullish market, many were spot trading, buy and hold for it to go higher, then sell. Without using leverage.
In a bearish market, you can do the same by going short. Without using leverage.
Leverage comes with MORE risk. ICYDK.
Easy practice that can keep you profiting at shorting.
1. Map out major/key levels
• Resistance level.
• Support level.
2. The Breakout Strategy.
• Price break through resistance [exit/stop loss]
• Price break through support[Entry/go short]
3. Range trading strategy.
• Price falls towards support[look to take profit]
• Price rises towards resistance[look for entry]
P.S. All chart patterns have a support and a resistance. Follow the above principle and stay profiting.
Cheers, AB.
#Abcryptotalk