An Astonishing Lesson of Losing 2 Billion Vietnamese Dong: Binance Futures Trading Insights Revealed!

On the road of Binance futures trading, I have experienced a lot of hardships, especially that time when I lost 2 billion Vietnamese Dong. Today, I will share some practical experiences, hoping that beginners can avoid detours and prevent encountering the same failures.

Set the maximum leverage to 5 times!

The most common mistake beginners make is overusing leverage, which leads to a surge in risk. High leverage can allow you to profit quickly, but it can also lead to rapid liquidation. A 5x leverage is manageable in risk and stable in profit.

Stop-loss and risk management are crucial!

Not setting a stop-loss is like walking on a tightrope. Every trade must have clear entry, stop-loss, and target points. Maintain a risk-reward ratio of 1:2 or 1:3; even with a 50% failure rate, you can still make a profit.

Trade calmly and maintain a systematic approach!

Do not blindly enter the market because of market fluctuations or fear. Follow technical analysis, stay calm, and avoid emotional decisions. A trading journal can help you summarize experiences and avoid repeating mistakes.

A clear trading process is a guarantee of success!

Before trading, make sure to clarify market trends, technical signals, entry points, and stop-loss points. Never trade blindly; ensure every step is well thought out.

Capital management is key for long-term survival!

Only risk 1-2% of your account funds on each trade. Even with consecutive failures, you can maintain capital vitality and continue to learn and improve.

Only trade when there is a clear advantage!

Not all market conditions are suitable for trading. Only enter when you confirm good signals and stable trends, avoiding risks brought by significant news fluctuations.

Trade less but with high quality!

It is wiser to wait for the best opportunities over 2-3 days than to conduct multiple random trades daily. If the market is unfavorable, take a break to adjust your mindset and avoid blindly chasing highs and lows.

Conclusion: Futures trading is not suitable for those who seek quick success

Beginners should start with low leverage, strictly implement capital management, and have a clear trading system. Most importantly, respect the market, trade calmly, and survival is the ultimate goal.