Futures Trading is a great opportunity to profit, but it requires you to have a reasonable and clear strategy. Here are some basic, easy-to-apply steps to help you trade smarter and enhance your profits.
1. Focus on Coins with High Volatility
Choose coins like DOGE or BNB – coins that have frequent price fluctuations. This volatility provides many opportunities for you to profit, regardless of whether prices rise or fall.
Tip:
Check the price history and trading volume of the coins.
Avoid coins with low liquidity.
2. Set Clear Trading Goals
Before placing an order, identify the following factors:
Entry Price: The point where you decide to start trading.
Profit Target: The price at which you will take profit.
Stop-Loss: The threshold to limit risk and avoid large losses.
Specific example:
If the current price of DOGE is $0.42:
Profit target: $0.45.
Stop-loss: $0.40 or lower.
This helps you control risk and always know when to exit the market.
3. Use Low Leverage to Reduce Risk
Leverage is a double-edged sword. When starting out, use leverage at 2x or 3x to ensure safety.
Reason:
Low leverage helps you maintain a stable mindset when the market is volatile.
Reduce the risk of account burnout when the price goes against predictions.
4. Monitor Important Price Levels
Identify support and resistance levels to make appropriate trading decisions.
Support: The price level where the coin tends to bounce back.
Resistance: The price level where the coin often struggles to rise above.
For example:
If the price of DOGE stays above $0.42, you might consider buying (long).
If the price drops below $0.40, you might consider selling (short).
5. Small Trades, Big Profits
You should not put all your capital into a single trade. Only use 10-20% of your total capital for each order to safeguard your assets.
Benefit:
Maintain capital for better opportunities in the future.
Easily manage risk and avoid large losses.
6. Update Market News
Market information is a factor that can quickly change the value of a coin.
Monitor major events, such as network upgrades or collaboration news of the coin.
Use reputable and accurate sources to avoid manipulation.
7. Learn from Every Trade
Whether you win or lose, each trade is a valuable lesson.
Review the decisions that have been made.
Note the factors that led to success or failure to adjust the strategy accordingly.
Act Now!
Futures trading is not just about making profits; it's also a journey of learning and growing. Stick to your plan, manage risk, and you will gradually achieve your financial goals.