$LAB Here is a clear example for you!!
If your risk management is good, then you can already start building a short position now, and by the time there are large corrections, you will already be in a good, strong position due to your averaging.
If you like leverage and risk, then it’s better to wait for the acceleration of the chart (large candles upwards) and only then enter short.
The advantage of small leverage is that with small leverage you can start building a position already now, and if the chart starts reversing right now, you will already earn. If it goes up, it’s not scary; you averaged your position, made it stronger, and again, when there’s a correction at the top, you will earn again.
If at the top the coin goes sideways, you can also exit using a hedge. But if you have large leverage and they turn on funding in that sideways at the top, then even a hedge won’t help. I will not keep repeating this!!!
Please think about the risks you are taking with your large leverage!!!
