The main risk when trading on the Futures market is the fact that you use credit in the transaction. In the transaction there is a “margin” - your invested funds and “leverage” - money that the exchange lends you for a commission. This creates a situation in which your potential profit can be many times greater than the amount of real money that you invested in the transaction. In the same way, this rule works the other way around: if the transaction goes into the red, your loss can be many times greater than the investment.
💸 Considering how indecently much I lost trading with large leverage, I want to advise you not to repeat my mistakes:
🩸 Use stop loss, this will allow you to clearly limit possible losses on the transaction, otherwise you will be shaved;
🩸 If the price goes in your direction by 10-15%, put a stop at breakeven (that is, at the opening price of the transaction), this will save your nerves and deposit. The market does not like greedy people, you will definitely be shaved;
🩸 When opening a trade, evaluate the PLR (risk-profit ratio), the ideal combination is 1 profitable trade covers 3 unprofitable ones. If you do the opposite, you will be effectively shaved;
🩸 Enter a trade with an amount of no more than 5% of your deposit
🩸 Don't open short positions on an uptrend. Averaging is evil. Shaving will hurt!
🩸 Trade highly liquid (popular) coins - stay away from shitcoins otherwise you will.... 🐹 well, you get the idea😂.
🤝I hope that my advice will be useful and will save you from unnecessary losses, remember that the market is not a place for gamblers.