Hello guy!
I assure you that many people always prefer futures trading over spot trading. Because of quick and attractive profits with leverage. However, the risk is burning through your entire account and going into debt. Below are some basic tips to help you minimize risks at least. Before sharing, I want to remind you: 'PLEASE MANAGE GREED WELL' because what kills you is your own greed.
Do not enter orders when the market fluctuates sharply. It is also known as 'Train resistance' - 'Catching falling knives' because there is a chance you will hit the wicks up to 80%-90%. Please look for signal candles before placing an order.
Do not set limit orders at night, especially during the time from 3-5 AM, as this is near the end of the US session. Whales will manipulate prices strongly.
Always use Isolated margin instead of Cross because if you get liquidated, you only lose a single amount of money. Cross can make you regret and lead to heavier losses.
Manage leverage well: the higher the leverage, the faster the liquidation. Let me give a specific example: If you trade with x20 leverage, a 5% spot price movement will yield a 100% ROI.
- Those with prices of 0.0x or 0.00x will have a very quick movement of 5-10%, especially small cap coins.
Learn how to take profits
- Achieve 30% pull SL to break even - Cut losses back to entry price
- Achieve 80-100% take 50% - Split profit-taking targets
- Achieve 150-200% please take 80-90% or take everything.
The market will have corrections when it encounters resistance because buyers take profits. The market will rise again during a decline because buyers place limit orders to catch cheaper prices. The market makers will also take this opportunity to push the wicks and trigger your SL.
Remember that Shorting means selling short, and to sell short, there must be coins available on the exchange; otherwise, we are just gambling with the exchange. Stay away from coins that do not have spot trading on the exchange.
Do not rely too much on indicators and data; everything is to show you to go All In.
Above is a few words to share with new members entering the market, wishing everyone successful investments. Wishing you good health.
