To trade Crypto Futures effectively, you can focus on the following factors:
1. Market knowledge and technical analysis
Understanding how the crypto market works and mastering technical analysis tools such as moving averages, RSI, MACD, Bollinger Bands, etc. will help you identify price trends and determine accurate entry and exit points.
2. Strict risk management
Futures is a highly leveraged form of trading, so the risks are also high. Set a reasonable stop-loss and never enter an order with an amount that is too large for your account. Capital management rules (e.g. only risk 1-2% per trade) will help you avoid heavy losses.
3. Stable mentality and discipline
The crypto market is highly volatile and can affect emotions. Staying calm, sticking to your strategy and avoiding emotional entry are the keys to long-term survival. Discipline helps you stick to your plan and avoid rash decisions.
4. Keep up with news and major events
Cryptos often react quickly to news, especially major events such as network updates, government regulations, or statements from influential organizations.
5. Choose the right time frame and trading strategy
Determine the time frame that suits your trading schedule and style, such as short-term trading (scaling), medium-term trading (swing trading), or long-term trading (position trading). Depending on the time frame, you can optimize your trading strategy to get the best results.
I am a freelance trader who has been trading Vietnamese stocks for 3 years, then switched to trading crypto since the 2020 pandemic.
