Essential Tips for Beginners in Futures Trading
Many beginners ask me how to operate well when starting futures trading with limited funds. Listen carefully, suppose you have 1000 yuan, donāt throw it all in at once; we need to use it wisely. Split this 1000 yuan into 10 portions, and take 100 yuan to trade each time. Donāt use too high leverage; 20 times is about right. If it's too high, itās easy to lose your composure.
If you lose this 100 yuan, donāt think about averaging down. Reflect on what you did wrong, take a break for a day or two. Donāt be afraid of missing opportunities; Bitcoin's market moves every day, and there are plenty of chances.
Once you're adjusted, split the remaining 900 yuan into 10 portions of 90 yuan each and continue trading. This time, be careful and try to earn that money back. If you make 300 yuan, quickly withdraw 200 yuan, leaving 100 yuan in to continue trading; this will give you peace of mind.
Position management is extremely important in futures trading. Even if you are a trading expert, you can't guarantee profits every time. So, you must control your positions well and avoid going all in.
Also, learning some trading knowledge is crucial; donāt play blindly without understanding. If you feel something is off, quickly reduce your position or liquidate, donāt stubbornly hold on.
Remember, if you lose more than 2% in a day, be cautious; if you lose 6%, quickly close all losing positions, set a breakeven point for profitable positions, then take a break for a few days.
Donāt blindly chase after price increases unless the market trend is very clear. Be careful when increasing your position after making a profit; it's best to wait until after a correction before adding, following the pyramid method of scaling in.
If your margin profit exceeds 200%, set a 40% trailing stop for half, and set a breakeven point for the other half; protecting your profits is key.
When you're in a bad mood or have worries in life, definitely avoid trading. Also, if youāve had consecutive losses, take a few days off; donāt rush back in.
Lastly, never trade against the trend, lower your trading frequency, and wait for the right moment to enter the market. For the right trades, hold your core position, and you might continue to profit.
Recently, I plan to invest in a potential coin that is about to explode; doubling your investment is quite simple. Iām also preparing to find some potential coins to hold until the end of the year, expecting a tenfold increase is not a problem. If you want to follow along, like and leave a message.
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