3 Strategies to Avoid Getting Liquidated on Futures Trading.
1. Hedge Mode.
Binance gives you a chance to trade through two modes; one-way mode or hedge mode.
Hedge mode allows you to go Long and Short on the same pair. You set your account on Hedge mode by going to futures' settings>features> position mode
Hedge mode is perfect for highly volatile pairs like $PEOPLE manipulated pairs like $TRB
$PEOPLE
2. Isolated Margin Mode
When your trading balance is over $1000, you should shift from cross-margin mode to isolated margin mode.
Under Isolated margin mode, you only assign specific amounts like $100 from $1,000, meaning you can only lose $100 from an individual trade.
However, people with small balances usually use cross-margin mode, leaving them at risk of getting liquidated.
3. Stop-Loss (SL)
Make SL your friend as you trade. Leaving your trading pairs to the fate of a volatile crypto environment will get your account blown and you will hate futures trading forever.
Try these three strategies to reduce your risks, but crypto trading will continue to be risky due to volatility in the market.
Over the last 12 months, $XRP has become the Antithesis of the Efficient Market Hypothesis(EMH).
With a negative YTD of (17.35%), XRP seems to be stagnating and non-reactive to positive news in the cryptocurrency space.
Despite not breaking the $0.75 mark in a period where major cryptocurrencies are surging, XRP still attracts massive volumes every day.
The huge 24-hour volume and largely non-volatile price action make XRP a perfect token to trade if you are patient enough. This is a disadvantage to many day traders like me who love to go where there is action like $PEOPLE and $FLOKI . However, these tokens made me lose huge capital after shorting then they immediately surged 30% or 40%.
However, trading XRP comes with a caveat as you are likely to use higher leverage since the price does not swing faster at times.
I am looking forward to integrating XRP as one of my core safe haven tokens to trade.
"Profit is profit, small profit is better than none, "
These phrases are largely true when it comes to cryptocurrencies due to the volatile nature of this beast.
Learn the art of taking a profit when trading even small profits. Most of my losing trades are always in profit at some point and I always like I will wait for "a bigger profit."
When you enter a trade, there is something that tells you to execute the trade whether it's market news, some trader signals, or your intuition. (Personally, I love following my intuition and doing my personal research).
Once you enter the trade and you're lucky for it to swing your way, take a reasonable profit as fast as possible. Don't wait for a huge windfall unless the overall market is somehow bullish or bearish and you are in a perfect entry position.
Remember, don't be greedy, take your small win and live to fight another day.
With such a capital, you can comfortably scalp around 5 to 10 trades per day, making over $80 per day. While, using small leverage of x3 or x4.
2. Don't overtrade.
Many traders including me make the mistake of always chasing to be on a trade at every moment. Observe the market, check news, and enter trade when it's the perfect timing. If the market is flat, avoid trading.
3. Timing is king.
With a perfect timing, you can make solid profit. Don't trade undefined charts, wait and jump in when its perfect.
4. Don't chase loses.
After making a huge loss, please take a break. Review your strategies and stick to them. However, many traders go on offensive like gamblers using huge leverage like x250 or x100 to recover their losses. This will sink you further into more losses. $BTC $ETH $BNB
My futures trading strategy works perfectly when $BTC Bitcoin and cryptosentiment is doom and gloomy.
Okay. What is my futures trading strategy? Purely shorting a single token multiple times until nothing is left.
One of the mistakes inexperienced futures traders, even experienced ones is to try to trade multiple tokens in a day. You are likely to get exhausted with tracking all those charts and lose your capital.
Back to my strategy, when $BTC Bitcoin is bearish,
1. First, i check Top gainers in the 24 hours. 2. Next, check on ones with the highest volume. 3. Technical analysis, charts has the token peaked and started dropping or its still surging 4. If signs of slight pullback, do a couple of shorts.
However, be careful to Stop Loss at the high- end level of the 24hrs highest level.
Important, check recent news about the token as positive crypto news can lock you in negative trade for days, which is mentally draining.
Futures trading can be frustrating at times, more so when you get locked in a negative trade for days.
Different people have their own strategies.
If you have big monies over $500 or $1000, you should move to spot to avoid daily charges on futures. Alternatively, you can use a small leverage x2 or x3 and trade big cap tokens like $BTC and my favorite,$BNB .
If you're trading with small budget less than $100, you want to trade tokens with wild swings, but don't ever surge 30 per cent in day. Check small cap tokens with huge volumes use a small leverage x2 or x3, you go above x5 on small tokens, you're likely to get liquidated.
Last critical bit, figure out your Stop Loss(SL) strategy. I have always hated SL as it often eats to your profits and you always say the trade is coming back to profitability. Determine SL take losses when necessary to avoid losing your entire balance.
Trading can be overwhelming, take breaks. Don't assume you can trade daily earning profits, probably you create a trading bot. Thats my two cents, lets trade responsibly.
BNB is Wildly Underrated as the Token Surges Past $530 Mark
Many crypto investors and enthusiasts are always fascinated with Bitcoin, Ethereum, and other altcoins like Ripple and Solana. There is always not much hype around the Binance token, BNB.
It’s time crypto enthusiasts start to recognize the value of BNB and put some dollars into it.