Why most of you lose money on future trading?
Many people are nowadays commenting on my posts saying, “I have this trade open, I’m in XYZ% loss, should I close it?”
Well, I never reply to this type of comment. But today I’m giving you a default answer. “Close it”
Now you may think, why I’m telling you to close it, while you can do following:
1. Deposit more funds to increase margin to avoid margin call. (Google “Margin Call”, if you don’t know what is it.)
Or
2. Do partial closing to avoid margin call.
Or
3. Just wait and see all your money go away.
Or
4. Go to X or Binance Square and look for a signal / post that is on your side. And start cursing all the people on comments for posting analyse saying market will go opposite direction of your trade.
1 is indeed a good option
2 is fine.
3 doesn’t makes sense to me.
4 is the worst.
Unfortunately, I have seen many people choosing option 4, especially those who have bought scam coins like STRK for 4-7$, and are holding onto their trades for a month, saying it will go up one day. (Meanwhile, developers keep selling the coins and dumping the price themselves.)
Even though options 1 and 2 are good, I would say the best option is to close the leveraged trade.
Because, if you're asking whether you should close it or not, it indicates that you don't know much about crypto trading and are unsure about the coin you're trading. In that case, the best thing you can do is close the trade.
I have seen most of you new traders, don’t want to lose a single penny. P/L should be always green.
This mindset makes you lose even more.
Look it’s not a sin if you lose 5$ or 500$. This will not ruin your life or destroy your trading career.
In fact you don’t need to recover the money within 1 or 2 weeks. Take deep breath, close your leveraged trade and after learning trading properly
Come back to future trading. Or consider spot trading.
Happy Trading
