If you are consistently losing in futures trading and want to turn it around, you must carefully read this practical guide. By doing the following points, your probability of making a profit will greatly increase:
One, do a good job of taking profits and cutting losses.
Market changes very quickly; taking profits and cutting losses is a must.
• Taking profits can help you control greed: the rise and fall of any cryptocurrency has cycles; it won't keep rising or falling indefinitely. Don't get hung up on closing positions too early and missing out on subsequent profits; remember that there is always money to be made in the crypto world, but your account balance can be wiped out.
• Cutting losses means abandoning sunk costs: don't always think about holding on for a reversal; if you're wrong, you need to acknowledge it. Cutting losses may feel painful like 'cutting off a limb,' but it can preserve your capital and leave you with a chance to recover.
Two, avoid frequent trading.
Frequent trading is a major taboo:
• Don't fantasize about profiting from both long and short positions; if you can consistently profit from one side, you should be satisfied. Most people find it difficult to balance both sides.
• Also, calculate the transaction fees: low leverage has a minor impact, but high leverage could result in a 1-2% loss of profit. If a position isn't profitable, it's like paying transaction fees to the platform for nothing, which is not worthwhile.
Three, learn to wait with a cash position.
When you can't understand the market, absolutely do not open positions blindly.
Some people feel bad about missing out on market opportunities, but compared to losses, the feeling of missing out is much lighter. Opening positions when the market is unclear is no different from gambling. Trading relies on a probability advantage; no one can accurately predict rises and falls, only judge the likely direction. If you don't understand, wait; it's not embarrassing.
Four, progress gradually, do not be greedy for quick gains.
Don't think about getting rich overnight; haste makes waste.
For example, using 100 yuan as capital with 10x leverage to go long means your position is equivalent to 1000 yuan. A 1% increase earns you 10 yuan, a 2% increase earns you 20 yuan, enough for breakfast. Opening three to four positions a day with a win rate of 60%-70% is much easier than working a laborious job. Opportunities in the crypto world are not achieved overnight; steady accumulation is more reliable.
Five, refuse to over-leverage.
Absolutely do not over-leverage; unexpected events can happen at any time.
Even if the market aligns with expectations, a sudden major news event can cause the trend to reverse sharply. If you haven't set a stop-loss, being heavily invested could lead to a total loss. Always operate with a light position and prioritize stability. The crypto world is not short of opportunities; there will be trends for the next 10-20 years, so don't be misled by short-term fluctuations.
Six, achieve unity of knowledge and action.
This is the hardest point; even seasoned traders may not be able to fully achieve it, as human weaknesses are hard to overcome.
Many people make these mistakes when they first enter the industry: blindly opening orders without a plan. In fact, the cryptocurrency world does have the potential to change one's fate, but the premise is that you must have an attitude far beyond ordinary people — the courage to act, the decisiveness to cut losses in time, and the determination to 'cut off a limb to survive.' Otherwise, it will be difficult to become part of that 1% who profit.