For those initiating their journey in the futures market, adopting a cautious and strategic approach is essential. The following are key tips for beginners:
1. Gradual Initiation: Commence trading with a modest initial capital, approximately $100. This allows familiarization with the market while minimizing associated risks.
2. Currency Selection: Select a currency that exhibits lower volatility. This facilitates reduced risk exposure and more informed decision-making.
3. Leverage: Utilize prudent leverage, not exceeding x10. This maximizes potential gains while minimizing risks.
4. Leverage Limit: Ensure that leverage never exceeds 50% of capital. For instance, with $100 in your account, leverage should not surpass $150 ($15 x 10).
5. Avoiding Same-Price Trading: Never buy or sell any currency at the same price with your entire margin.
6. Divided Margin: Divide your margin into 4 parts ($15/4 = $3.8), indicating that you will open long or short positions with $3.8 x 10 = $38 USDT.
7. Dollar Cost Averaging (DCA) Strategy: If you opened a long position and the currency dropped between 5% and 10%, buy again with $3.8 x 10 (this is called DCA), lowering your entry point. The same applies to short positions if the currency rises between 5% and 10%.
8. Chart Analysis: Choose an appropriate duration for your charts, such as 1 hour, 4H, or 1D. Analyze charts to evaluate currency behavior.
9. RSI Indicator: As a beginner, utilize the RSI indicator for specific durations (1H, 4H, 1D, etc.). If the RSI score is below 20, the currency is oversold and may experience a rebound; if the RSI score exceeds 90, there is overbuying, making it safe to adopt a short position.
10. Stop-Loss: Never trade without establishing a Stop-Loss; it is an essential protective measure during trading.
11. Patience and Discipline: Patience and discipline are fundamental in the futures market. Stay updated on market conditions and make informed decisions. Enter and exit trades opportunistically and never trade impulsively. Once you achieve gains, relax and await the next secure investment opportunity. If you incur a loss, relax and do not rush to recover; you might end up losing more.