If you want to be a true trader rather than a gambler, it's essential to approach trading with discipline. Opening positions with 5x-10x leverage using all your capital is akin to gambling. In such high-risk trades, the chances of getting liquidated are extremely high because the crypto market is highly volatile, with price swings of 10%-20% being common. Even with stop-losses in place, a small movement could wipe out most of your capital.
The core principle of successful trading is patience. If you're impatient, you're unlikely to succeed as a trader. Here's why patience is so important:
First, avoid taking 10x leverage or even using all your capital for a single trade. Even trading with 1x leverage can feel like flipping a coin when predicting market direction. Instead, limit your trade size to no more than 5% of your capital.
If the trade goes your way, great! You can take profits when you're ready. If it doesn't, remain patient. With only 5% of your capital at risk, any loss will be manageable. If the market moves 10% against your position, that's when you can consider adding to it.
This approach helps improve your overall position. Since the market usually returns to the mean, it will likely come back to your entry point (with few exceptions). Once you're in profit, hold on a little longer before exiting to secure your gains.
Here's something you won't hear often, but you absolutely need to know: you will earn much more by selling your cryptos too early than too late. Don't be too greedy, it will make you lose. When you've made a profit, don't try to make too much of it learn to stop and learn to sell
I see a lot of people say, when they are at a loss on an investment, "not sold, not lost!". It's an extremely stupid phrase because it implies that it will go up later when we don't know that, but more importantly, it also applies in the other direction: not sold, not gained
During the previous bull market, I knew dozens of crypto millionaires who already saw themselves rebuilding their lives, moving to other countries, buying magnificent villas... and in the end, they were caught by the market and did not sell in time: they lost several million euros in total and went back to their usual lives by going to work every morning
It's tough, but it's the return to reality. Your gains in crypto are not secured until you have sold, and you must always keep in mind that the market can turn at any time without ever returning to the highest price levels. Some crypto fanatics in the comments will say no, that it will continue forever: don't listen to them, they have no certainty about the direction of the market in the coming days. Neither they, nor I, nor anyone knows where the market will go. So, consider paying yourself by regularly selling your cryptos at a profit: otherwise, you risk losing a lot and falling into depression, believe me it happens very often
Some in several months will think back to my message and recognize themselves in it, and they will say that I was right and that they should have followed this advice. But it will be too late for them, unfortunately
I have seen many screenshots posted on Binance with questions like "What do you suggest?" or "Can I hold this position or not?" These posts often show users losing money in futures trading. If you're new to leverage trading, understanding these key points can help you avoid common mistakes and protect your investments.
1. Risk Management
When you come to trade in futures, you must learn about risk management. Without it, you can harm your wallet without even realizing it. Understanding how much you're willing to lose on a trade and setting limits is crucial. Always determine your risk level before entering a trade.
Best Risk Rewards Ratio 1:3
if you're margin 100$. your risk 100$ if hit SL, Rewards 300$ if you hit tp.
2. Emotional Decision
Trading based on emotions is one of the biggest pitfalls. Fear and greed can cloud your judgment and lead to poor decisions. It's important to stay calm and stick to your trading plan, rather than reacting impulsively to market fluctuations. that's why I suggest use stoploss..
3. Taking Profit
Knowing when to take profit is just as important as knowing when to enter a trade. Set clear profit targets and stick to them. Don't get greedy and hold on for too long, hoping for more gains, as the market can turn against you quickly. if you like to hold you can use Stoploss at entry or trailing Stoploss when you see a good profit.
4. Stoploss
A stoploss is a pre-determined price at which you will exit a losing trade to prevent further losses. It's essential to set a stoploss for every trade to protect yourself from significant losses. Make sure your stoploss is at a logical level, not too tight to avoid being stopped out prematurely, but also not too loose to prevent major losses.
-30% Per Trade Good RR
Even if 20,000 people seeing this post, only 1% will follow & like this post because they want to learn. I hope you're one of them.
$#Future_trading_tips 🚫Never get liquidated if you do these action:
1. Risk Management: Set a reasonable leverage level and only risk a small percentage of your trading capital on a single trade. This helps protect your account from rapid price movements.
2. Stop-Loss Orders: Always use stop-loss orders to limit potential losses. Set these orders at a level where you are comfortable taking the loss, based on your risk tolerance and analysis.
3. Diversify Trades: Avoid putting all your funds into a single trade. Diversifying your trades across different assets or trading pairs can help spread risk.
4. Monitoring Positions: Regularly monitor your open positions, especially in volatile markets. Be aware of market developments and news that may impact your trades.
5. Use Take-Profit Orders: Consider setting take-profit orders to secure profits when the market moves in your favor. This can help prevent the temptation to hold onto positions for too long.
6. Understand Liquidation Price: Be aware of your liquidation price, and ensure it is well below critical support levels. This reduces the risk of getting liquidated during temporary market fluctuations.
7. Stay Informed: Keep yourself informed about market conditions, news, and events that could affect the assets you are trading. Being aware of potential catalysts can help you make more informed decisions.