Optimize Profit Using Leverage (FUTURE)

Futures are a high-risk discipline, not applicable to those who cannot control their emotions. The goal of trading futures here is not to look at how much money you make in a day or a month. But the purpose is to increase the quantity of existing coins.

Provided that you still believe in the cycle and believe that the market will continue to rise. What we need to do is find coins that meet the criteria.

For example, $ETH was at $2,400, I believe the price cannot return to the $1,200 range, at that point I made a 2x long position. Assuming my capital is $10,000 and after using leverage it becomes $20,000. When $ETH rises to $4,800, I achieve a profit of 200% - compared to the original $10,000. The total amount received after closing the position will be $30,000.

If with an initial $10,000, at a price of $2,400, we can buy 4.1666 $ETH (image 1). Then after closing the long position for $30,000 (image 2 - original $10,000 + profit ~ $20,000) and buying at that time for $4,800, we will obtain 6.25 $ETH (image 3). Although buying at a higher price, in terms of quantity, we profit ~33.33% of the coin compared to normal spot holding.

We can apply a similar method with other coins that have good fundamental factors - after there is a sell-off, the chart is accumulating, fluctuating for a period... aiming to achieve faster and higher profits.

Continuing with the $STRK example, I went long 2x at $0.33 - the price had split about 10 times from the peak and fluctuated in the $0.32-$0.55 range for a few months; all fundamental factors of $STRK are quite good except for inflation and prolonged price stagnation... as I mentioned in the article '#THOUGHT #OPINION #AGAINST #WHEN #TRADING #COINS' - that is not something I care about - because 'in danger always has opportunity.'

When going long $STRK 2x entry at $0.33, the liquidation price will be around $0.165. I think the possibility of $STRK returning to $0.165 is very unlikely. So I chose to bet and then $STRK broke up to $0.51... I took profit and bought back at that price. In terms of USDT, when the price dropped from $0.51 down, I incurred a loss, but in terms of coin quantity, I have gained more compared to the initial amount. When the price returned to $0.37, I took profit and continued round 2...

I also did the same with coins like $CATI, $HMSTR, $DOGS, $WLD, $TNSR... and achieved quite good results. By this method, my total account calculated in USDT has increased by about 40% compared to holding spot. This is with me only going long a portion with low leverage and never going long more than 25% of the account. If going long the entire account, the profit will be large but equally dangerous.

We can hold the position continuously until the profit reaches 100%, 200%... 500% - of course, we will have to bear quite high funding fees. One can use part of the profit to place additional small orders to offset the fees. Or instead, you can take profit at a lower level but trade more rounds.

Like the last time when I went long $CATI at $0.32 up to $0.41 and took profit, then went long round 2 at $0.38 and took profit again at $0.47... then round 3 at $0.52 and took profit at around $0.73... with $CATI I predict that there will be signs of an early increase, and since I played with a small capital, I chose to go long with 3x leverage... My profits after 3 rounds were quite good.

If we believe this is the beginning of an uptrend and the likelihood of going up will be higher than going down, then you can play like that. Choose leverage so that the liquidation price is at a level that you think is unlikely to be reached; I recommend using only 2x leverage, at most 3x. The beginning of a wave is the best time to apply this way of playing.

In an uptrend, the main trend is still upward, but there are also corrections of ~15-20% or more. If you are quick, you can observe and go long when the coin drops to a certain level and shows signs of recovering. It will increase consistently but will also have corrections; it decreases continuously but will also have recoveries. In a large upward wave, there will be small downward waves and vice versa.

Currently, I bet that this is the beginning of an upward wave; the long-term trend will be increasing - the chance of a strong and prolonged drop is low... So I only go long, and if anyone is capable of 'guessing' the downward swing, going short will be more profitable because as the coin drops, long positions will gain more, and after taking profit, you can buy at a lower price, allowing you to accumulate more.

However, if everything goes according to the cycle, it won't be long before the coin doubles or triples in a few weeks, making it easier to get burned when going short. If you go long and the price decreases moderately, you can still hold on until it profits.

Note that when placing a temporary long, we do not set a stop-loss... because if you believe the liquidation price cannot be reached and are betting on it, a stop-loss is unnecessary, and in some cases, it will sweep your stop-loss and then bounce back, which is quite regrettable. At the same time, also prepare a mindset to endure temporary losses.

Take profit depends on ambition, the general situation of the market, and the coin you are going long on. Moreover, not every coin can be longed... needs to be checked carefully.

However, this way of playing also contains many risks. That is, in the worst-case scenario, it goes back to the price that you think cannot be reached because in this market, in this life, nothing is impossible. So you must accept the worst-case scenario of losing all that money. Therefore, if optimizing, it is advisable to only allocate a portion of the total account rather than going all in.

This playing style is not suitable for people with low endurance. Normally, just holding coins is already stressful, but when going long and short, the pressure you have to endure is proportional to your leverage.

Futures are a double-edged sword; they can help you but can also harm you. But what I find most interesting about futures is that they increase pressure to train emotions. When trading in shorter timeframes, you immerse yourself in a smaller cycle of the market... all feelings of greed, fear, regret, and anger will occur... but will be faster and more intense...

When you have a profit (at some level), remember to take profit (at some level) or set a positive stop-loss (at some level) - these can be based on technical analysis or market psychology at that time to make decisions. Be sure to take profit at some point to avoid unexpected downturns that may make you regret it.

If you do not want to take all profits - still want to participate. Then you can take part of the profit enough to recoup the initial coin amount, while leaving the profit to hold for a few more months during the uptrend, because it is determined as profit, so just let it be. You don't need to worry about fees because if the market goes up from here, the profit will outweigh the fees...

I have many more tips applicable to those who are quick and have good endurance. Each tip will correspond to different stages of the market from the current time until the downtrend; if everything goes as predicted, I will gradually share according to each stage.

You can contribute your opinions below for discussion; this is also a way to help us improve. Please!