The option of trading futures is one of the most controversial on the market: On the one hand, it allows us to multiply profits thanks to leverage, but also losses.
We can operate both ups and downs.
This is where beginners make and lose a lot of money, often without knowing how it works. I'm not going to explain how it works here, because there are many articles about it, but I will share some rules and tips with you.
In the upper left corner we have the option to adjust the leverage and select whether we operate Cross or Isolated. By default it is 25X crossed, that means that if we have 1000 dollars in the account and we open an order for 100 dollars, the remaining 900 will be taken as collateral in case of losses. That is why we see position captures at -280% for example.
If you are going to trade, always do so in isolation, so that only the money you put in when opening the contract is used, try to have a calculated risk, so that in the worst case you only lose 5%-10% and not your entire account.
It is tempting to leave leverage high, but it is dangerous.
If you are a beginner, don't trade more than 10X. At least until you gain experience and are able to scale up. The Crypto market is already volatile, so you are going to have big moves with low leverage.
Use the stop loss, always! You are not betting on red or black, you are trading with a supposed analysis, so put a stop in a key place on your entry price, the one that will save you if the price goes against you.
With lower leverage you will be able to use larger stops, so take advantage of them.
Your take profit should be realistic, you are not going to get rich with a single trade. Plan an estimated profit and try to reach it.
The most important thing is to be consistent, even if your contracts give you 30% it is excellent. Imagine that sustained profit, trading with more and more capital per trade, isn't it smarter than expecting 300% on a single bet?
Manage your capital, don't use it all at once. If you only have 100 USDT allocated for futures, open trades of 10 USDT.
There is no point in betting everything at once, always keep reserve capital in case a stop loss is executed, or in case the trade goes wrong.
Don't do revenge operations.
If your analysis failed, accept it and learn why. Don't open another trade to get revenge and recover instantly, that doesn't work out well.
Trade management.
Once your trade is going the way you expect, move your stop loss to your entry price, ensuring you don't lose money first. Then you move your take profit, ensuring small gains.
For example, you went short on BTC now, the price drops by $2000, you can cash out half of the contract and let the rest ride.
Trade consistent, high-cap assets where you can rest easy without erratic movements complicating your life.
The best thing is to operate BTC, ETH, SOL, ADA... From the top 10 to 30 approx.
Don't use money you're willing to lose.
That's nonsense, nobody wants to lose money. The first thing is to avoid losing, but if you are going to use money, don't spend your savings or capital that you are going to need tomorrow, otherwise every action you take will be done with fear. The same goes if it is borrowed money, don't do that, use only your own money and if you don't have any, don't trade.
The futures market is an excellent opportunity to generate large profits, but it also has its risks. Trade without fear but with calculated risks and do not get carried away by emotion.
Citizen Crypto wishes you a great day and good trading.
