🚨A catastrophic mistake that beginners make is trading futures contracts. Avoid falling into it🚨
Leverage of more than 20x and accelerating liquidation❌️
First, if you do not know what futures contracts mean,
It is a borrowing system where the amount to be traded is doubled, but on the condition that a liquidation price is set when the currency reaches a certain number according to the x you chose. For example, if you have a dollar and you want to double it to $20, you will choose x20 and you will trade with the borrowed amount, but the platform has a percentage of 0.01. If the liquidation price is reached, you lose the dollar, and if the deal rises, the profit is yours.
❌️It is not always recommended for beginners to enter a deal with this leverage because it is a big risk and can completely liquidate your balance if the liquidation price is reached.
There are several things that must be followed, otherwise you will lose a large percentage of your capital
First, when entering the deal, the leverage must be
10x or 15x so that if there is a sudden drop in the deal, there is a distance from the liquidation price and the risk is reduced.
Second, do not put all your capital, you must put 10%.
Third, trading must be isolated so that your basic capital is not entered and liquidated.
Fourth, you must study the market and follow the indicators and Japanese candles, especially the RIS momentum indicator.
Loss is always present and profit is present, but this field requires patience and learning, not luck.