Let's crush it this bullish season with my stop hunt and breakout strategy.
I never imagined reaching this level. It took me 4 years, blood, tears, disappointment, and stress, but I never gave up.
I learned the hard way; I never had a mentor. I made all the mistakes, multiple times.
Shorting in a bullish season. Over-leveraging. Excessive confidence. Risking everything on one trade. Lack of patience. Trading without a strategy. Letting my emotions dictate my movements. Not diversifying. Selling my spot bags at a loss instead of accumulating.
After +5000 trades in futures this is what I have learned:
- It is normal to have losses, measuring the risk is the most important thing. Protect your capital!
- Do not put all the capital in futures. (10% of the capital at most).
- Do not leverage more than 10x, especially for beginners. Keep it at 3-5x if you want to trade with peace of mind and not risk being liquidated.
- Risk 1% maximum of the capital in a trade. Eg. if you have 200$ in your futures account, your SL should not make you lose more than $2. It may seem like little but remember that a 1% gain each day will multiply your account by 30 in a year.
- Taking profits is always good, consolidate trades before the market decides to go against you.
- Find a strategy that suits you and makes sense, and do not change strategies every time because you have losses.
- Don't give up, keep learning and refining your knowledge.
- Working on yourself will make you more consistent and not get carried away by emotions.
- Looking at charts will make you make bad decisions. Once you have your play, with SL and TP (can be partial), let the market do its thing.
- If you risk all your capital, you will lose it eventually. Only invest what you are willing to lose.
- Celebrate every win and take note of what you did well.
- Learn from every loss and move on.
- Stay humble as overconfidence is also your enemy.
- Don't worry about making "a lot of money", but about becoming consistent with small gains. Eventually you can scale up those gains over the long term.
Several times I bet everything and lost count. Eventually I was able to recover and come out victorious, persevere and you can do it too. Don't let emotions guide your operations. Have a strategy and don't follow the market tides.
That said, here's a sample of what can be achieved with persistence:
Be careful, I traded with more than 10x, but within what I was willing to lose.I wish you success and don't over leverage yourself!
Trendlines don't matter. RSI don't matter. Order blocks don't matter. What matters is having an edge and refining your strategy. If not just go chilling on spot.
$DOT Yesterday I closed my position due to the lack of volume; it did not hold the breakout. I think it will go for liquidity at the lower part of the range before continuing to rise. I will look for opportunities next week.
For those who want to learn how to trade futures, I recommend going to the simulator. Once you have a winning streak and a polished strategy, move on to test the market. Otherwise, you will only lose.
Its a mistake to have too many trades open. You can multiply wins but if market turns you risk more. For beginners sticking to 1-3 trades is better. For advanced traders like myself also sticking to 1-3 trades is better. Focus your attention, all you need is one good trade at a time.