1. Choosing the right pair to trade:
When you enter the Binance Futures platform, the first step is to choose the pair you want to trade. The choice of pair depends on market analysis and technical insight. You need to be aware of the available trading pairs and choose the one that suits your strategy. For example, if you expect the price of Bitcoin to rise against the US dollar, you can choose the BTC/USDT pair.
2. Market analysis and entry point selection:
Before you decide to enter into a trade, it is essential to conduct a technical analysis of the market. Technical indicators such as moving averages, the relative strength index (RSI), or the stochastic indicator can be used to determine the optimal entry point.
Follow the article in the link to learn how to choose the best entry points
- Buy position (Long Position): If the technical indicators indicate a strong upward trend and you expect the price to rise, you can enter a buy position.
- Short Position: If the indicators indicate a possible price decline, you can open a short position.
You must have a specific strategy to determine the entry point, such as buying when a certain resistance is broken or selling when a strong support is broken.
3. Set the stop price at take profit:
After you enter the trade, you must set a stop-profit price. This price is the point at which you want to take profit and exit the trade.
For example, if you open a buy trade on BTC/USDT at 58,000 USDT, and expect the price to reach 60,000 USDT, you can set a “Take Profit” order at 60,000 USDT. Once the price reaches this level, the trade will be automatically closed and you will realize the specified profit.
4. Setting the Stop Loss price:
It is very important to set a stop loss price to protect your capital. This price is the level at which you will automatically exit the trade if the market moves against you to avoid big losses.
For example, if you bought BTC/USDT at 58,000 USDT but want to minimize losses if the price drops, you can set a Stop Loss order at 57,000 USDT. If the price drops to this level, the trade will be automatically closed, minimizing your losses.
5. Choosing leverage:
Leverage allows you to trade larger amounts of capital, but it increases the risk. On Binance, you can choose the right leverage based on your risk tolerance. For example, using 10x leverage means that every 1% price movement will multiply your capital 10 times.
6. Monitor the deal and adjust as needed:
After opening a trade, you should monitor it regularly. You may need to adjust your “Take Profit” or “Stop Loss” orders based on market developments. You can also choose to close the trade manually if you feel the market is moving unexpectedly.
Conclusion:
Properly setting up a trade on Binance futures requires a good understanding of the market, using technical tools and indicators, and choosing the right entry and exit points. Controlling risk with Take Profit and Stop Loss orders is an essential part of your successful trading strategy.
