Best way to utilize Futures is: - a. Take Trades only twice your wallet amount. As a thumb rule, use 10% capital with 20x. b. Divide TPs(Take Profit) into three with percentages suggested to be TP1(50%),TP2(25%) & TP3(25%). c. Never Linger on one trade for longer period of time like 2-3 days, sudden dumps and pumps are inevitable. d. Put Stop Loss. No business can bring profit always, so be prepared for worst while hoping for best. e. Never ever go for DCA(Dollar Cost Average) when in loss, Accept your own terms of stop loss decided previously when you took trade. f. If your trade goes beyond 12 -15 hours and you are not getting closer to TPs, close in minimal profit. g. It can happen that you take a trade and it goes in huge profit all of a sudden, try taking reverse trade. Like if you longed a coin at 1 and it reached 1.1, take short from 1.1 h. Small profit is still a profit. Small progress is still a progress. Instead of going for Profit and Loss days, try to divide your days into Big and Small profit days. I. Don't invest in a single coin. Take 3-4 trades and leave as soon as you are in profit. 2.5$ in 1 trade is excellent of you can replicate same in other 3 trades. j. If you face loss, take a break. Relax your nerves,control your emotions. k. Winners never quit, so keep going and don't stop.
#Liquidity101 LIQUIDITY is measure of how an asset can be bought or sold without significantly impacting its price.
HIGH LIQUIDITY means more buyers and sellers are readily available, leading to a stable market with minimal price fluctuations.
LOW LIQUIDITY can lead to price volatility and inefficiencies, making it difficult for traders to execute large orders or exit positions quickly.
Some aspects of liquidity include: - 1. Ease of Exchange: - Liquidity ensures that traders can convert one cryptocurrency into another or into fiat currency (like USD) without causing a substantial price drop.
2. Market Stability: - A liquid market is generally more stable and less prone to sudden price swings.
3. Reduced Slippage: - High liquidity minimizes the difference between the price you see and the actual price you receive when executing a trade, especially for large orders.
4. Factors Affecting Liquidity: - Market sentiment, trading volume, the regulatory environment, and technological advancements all play a role in shaping liquidity.
5. Liquidity Pools: - Decentralized exchanges often use liquidity pools, where tokens are deposited, to facilitate trading. The amount of tokens in a pool directly impacts its liquidity.
6. Market Makers: - Market makers, like exchanges, help provide liquidity by constantly placing buy and sell orders, ensuring a continuous flow of orders.
Liquidity is an essential part. It ensures following features: -
1. Reduced Risk: - High liquidity allows traders to exit positions more easily, reducing the risk of getting stuck with assets that are difficult to sell.
2. Exit Strategies: - A liquid market helps traders develop effective exit strategies, ensuring they can cash out their investments when needed.
3. Reduced Manipulation: - Strong liquidity makes it harder for individuals to manipulate prices through large, sudden trades.
4. Market Efficiency: - Liquidity contributes to a more efficient market where prices are determined accurately by supply and demand.
Best way to utilize Futures is: - a. Take Trades only twice your wallet amount. As a thumb rule, use 10% capital with 20x. b. Divide TPs(Take Profit) into three with percentages suggested to be TP1(50%),TP2(25%) & TP3(25%). c. Never Linger on one trade for longer period of time like 2-3 days, sudden dumps and pumps are inevitable. d. Put Stop Loss. No business can bring profit always, so be prepared for worst while hoping for best. e. Never ever go for DCA(Dollar Cost Average) when in loss, Accept your own terms of stop loss decided previously when you took trade. f. If your trade goes beyond 12 -15 hours and you are not getting closer to TPs, close in minimal profit. g. It can happen that you take a trade and it goes in huge profit all of a sudden, try taking reverse trade. Like if you longed a coin at 1 and it reached 1.1, take short from 1.1 h. Small profit is still a profit. Small progress is still a progress. Instead of going for Profit and Loss days, try to divide your days into Big and Small profit days. I. Don't invest in a single coin. Take 3-4 trades and leave as soon as you are in profit. 2.5$ in 1 trade is excellent of you can replicate same in other 3 trades. j. If you face loss, take a break. Relax your nerves,control your emotions. k. Winners never quit, so keep going and don't stop. #TradingTypes101 #CEXvsDEX101 #BTC #BTC走势分析 #BinanceFutureTrading