Introduction
Binance Futures is a fantastic platform for traders looking to profit from market movements, but many beginners make avoidable mistakes that lead to losses. Let’s discuss the top three mistakes and how you can avoid them.
1. Over-Leveraging
High leverage can multiply your gains, but it also amplifies your losses. Many beginners use maximum leverage without understanding the risks.
Solution: Start with lower leverage (e.g., 3x-5x) until you gain experience.
2. Ignoring Risk Management
Entering trades without a stop-loss or risk plan is a recipe for disaster.
Solution: Always set a stop-loss and only risk 1-2% of your capital per trade.
3. Not Understanding Market Trends
Jumping into trades without analyzing the market often results in losses.
Solution: Learn technical analysis and follow market news to make informed decisions.
Conclusion
Avoiding these mistakes can save you from significant losses and help you trade futures confidently. Start slow, manage your risks, and keep learning.