Understand Risk and Risk Management
Use Stop Loss and Take Profit: Set a limit on how much you are willing to lose with a stop loss. This prevents excessive losses if the market moves against your position. Take profit helps lock in profits at a certain level.
Limit Leverage: High leverage can multiply profits, but it can also multiply losses. Try to start with lower leverage (e.g., 5x or 10x) and only increase it when you feel comfortable and experienced.
Use Capital You Can Afford to Lose: Only use capital that if lost, will not disrupt your personal finances.
2. Focus on a Market You Understand
Choose Pairs with High Liquidity: Pairs like BTC/USDT or ETH/USDT have high liquidity and more stable price movements than smaller altcoins. Trading in these pairs can reduce spreads and make order execution faster.
Technical and Fundamental Analysis: Use a combination of indicators such as RSI, MACD, and MA (Moving Averages) to understand market trends. Also, pay attention to news or fundamental factors that can affect prices.
3. Discipline with Trading Strategy
Follow a Consistent Strategy: Donât change trading strategies too often. If you have already established a strategy such as scalping, day trading, or swing trading, be disciplined in implementing it.
Avoid FOMO (Fear of Missing Out): Don't enter the market just because you see the price moving fast without a solid plan. This often leads to emotional decisions.
4. Use Tools on Binance Futures
Use the OCO (Order-Cancel-Order) Feature: OCO allows you to place a limit order and a stop-limit order in one instruction. If one is activated, the other is automatically canceled.
Take Advantage of Grid Trading or Copy Trading: If you want to be more passive or test automated strategies, use the grid trading feature. You can also follow experienced traders through copy trading.
5. Make the Most of Volatility
Wait for Strong Momentum: The best times to trade futures are usually during times of high market volatility, such as after a major news release or during the US open. Be careful, however, as extreme volatility also increases risk.
Beware of Short Squeeze or Long Squeeze: Don't get emotional when a short squeeze (rapid price movement up) or long squeeze (rapid decline) occurs. Learn the pattern so you can adjust your position.
6. Monitor Market Sentiment
Pay Attention to Other Tradersâ Long/Short Ratio: Binance provides market sentiment data, including the ratio of other tradersâ long and short positions. This information can give you an idea of ââwhich direction the big traders are moving.
Use Social Media and Community Analysis: Often, sentiment in communities (such as Twitter or Telegram groups) can provide early signals about the market's near-term direction.
7. Learn from Mistakes and Adapt
Evaluate Every Trade: Every day, evaluate the positions you take, whether the results are as expected, and what can be improved.
Stay Calm and Adapt: ââThe crypto market can change quickly. Donât be afraid to close a position if things change drastically and donât match your initial analysis.
8. Try to avoid newly listed coins
New coins are highly discouraged to trade if you are a beginner because new coins are very volatile.
Many whales use new coins to gain profits by manipulating the market.
Example 7 Day Strategy:
- Days 1-2:
Start with in-depth technical analysis, choose a liquid pair (for example, $BTC /USDT or $ETH /USDT). Place an entry at a clear support or resistance.
- Days 3-4:
Use leverage and pay attention to margins
Lev 5x : margin 20%
Lev 10x : margin 10%
Lev 15x : margin 6%
Lev 20x : margin 4%
Lev 25x : margin 3%
Lev 50x : margin 2%
Lev 75x : margin 2%
Lev 100 : margin 1%
Lev 125x : margin 1%
If the position is profitable, do not hesitate to take partial profit and move the stop loss to break-even.
- Days 5-7:
If there is already a significant profit, reduce risk exposure by reducing leverage or taking profits and leaving capital for the next trade.
With good risk management, discipline, and proper analysis, you can increase your chances of achieving your profit target within 7 days.
