Trading futures contracts can yield high profits but is also fraught with risks. Apply these 8 principles immediately to keep your capital safe and optimize profits:
1. Strict capital management.
Do not go all-in: Only use 10-20% of capital for Futures, keep the rest in stablecoin.
Each order 1-2% of capital; split orders into multiple entries.
Set a loss limit: For example: Stop trading if losing 5% in a day.
2. LOW Leverage – HIGH safety
New traders: 5x-10x. Experienced: Maximum 20x.
Use Margin Calculator to calculate carefully before entering orders.
3. MANDATORY STOP-LOSS
Clear Take-Profit: Take profit when reaching the target (e.g., +5%).
Trailing Stop: Use automatic stop-loss adjustments according to the trend.
Note: Always place limit orders; if you use market orders, the transaction fee will be doubled; always place prices in odd amounts.
4. AVOID HIGH Funding Rate
Funding Rate > 0.1% → Do not hold positions overnight (unless certain of the trend).
5. TECHNICAL ANALYSIS – DO NOT FOMO
Identify trends using MA, RSI, MACD. The simpler the analysis method, the better; the essence is just up or down.
Coins need to be influenced by BTC price, so it is recommended to focus on trading BTC or ETH only. You can take profit when the price runs 1K or close according to EMA support.
Do not chase tops/bottoms: Wait for price retracement or clear breakout.
Keep track of Fed news, Halving, regulations.
6. WISE POSITION HEDGING
Open opposite positions to reduce risk (e.g., Long + Short).
Note: Hedging incurs costs → Use temporarily.
7. STEEL MINDSET
Do not trade when emotions are high (FOMO/FUD).
Follow the plan: Do not move the stop-loss arbitrarily.
Take a break if losing 3 consecutive trades.
8. LEARN EVERY DAY
Backtest strategies with historical data.
Follow professional traders through livestreams and analyses.
CONCLUSION:
Futures are not a gamble – Winning or losing depends on discipline!
