… or How to Not Lose all Your Money in First 90 Days

#Beginers #BeginnerTrader #RiskManagement #BinanceFutures #quinn_tips

I describe my approach which I currently think is right for me.

I’m sharing it since I think it can be helpful for other newcomers.

As I learn more, my opinion on this topic may change.

I started when crypto was in ranging phase, so my experience may not be applicable to strongly trending market, which I hope will come soon.

I’m not really scalping, I’m not good at it.

It is not a recipe about making 10x in a month.

For now I consider it a learning experience. If I desperately needed to earn I wouldn’t go here, too risky.

Crypto Allocation / Portfolio

  • 1/3 - top 3 coins $BTC $ETH $SOL

  • ~40% - stable coins

  • 1/3 - anything else split about 50/50% between top-10 and the rest

  • For now I use relatively small amount of funds for crypto (less then required for any VIP level on Binance), but making it too small does not makes much sense to me.

Allocation by Product

Actually, my plan is to use about 1/3 of my funds for futures / options, but after series of failures I gradually and I hope, temporarily decreased it to about 1/4.

Operations Futures / Options

  • I’m more active at futures due to lower fees (compared to spot). But I don’t abandon spot and other tools.

  • Don’t risk on anyone trade more than 2% of what is currently allocated for futures/options (excluding coin-m, which I use for mid-term investment). Helps me stay in the game longer while I’m learning. 😁

  • I don’t have a strong opinion on leverage. In futures I just rarely needed more than 2x and only couple of times 4x. In coin-m - under 5x.

  • I trade them only in liquid markets: top 3, rarely something from top 10

  • I don’t trade news when they arrive, but 30-60 minutes later can present great opportunities

  • I rarely trade in European hours. I step into eastern hours only when I follow a trend.

  • Sometimes I keep my day-trade overnight, protecting it with SL/TP. In around 50% cases it helps, otherwise it ends up around breakeven

ETH Futures Day Trading

I’m not going to write on technical analysis. Just few rules I follow to decide when not to trade.

  • Usually, if I don’t see volume >100k on 15m timeframe (ETH), I stay away and observe. In London hours I tolerate a bit lower volume.

  • Usually it is good idea to close at the end of the day. Longs can be kept a bit longer.

  • I usually prefer US hours.

Spot

So far I’ve been more successful in spot. I try to find opportunity to buy low. Whenever coin allocations is above what I plan for it, I start looking to sell excessive amount higher.

Sometimes I use dual-investment feature when I can wait and don’t care about few $$ price difference. It does not seem to have fees. And does not require staring at the screen.

Earn

Only marginally profitable, but since at least 50% of my funds stay passive, I let earn do its thing.

Summary

  • Risk management is the key.

  • I don’t engage in risky endeavors.

  • Spot is good and accounts for most of my profit. Honestly, if fees where comparable to futures, I’d stay mostly in spot.

  • Futures present great opportunities, but I cannot master good win/loss ratio yet, so for now I only have a little profit there. I’ll scale allocation to futures to 1/3 again when I feel more confident there.

  • Quarterly Coin-M futures are good for longer term trades due to absence of funding fee.

  • I’m more successful with options long puts than with futures shorts. Not sure why. Maybe it is just me.

  • Patience is a key. I may have 5-10 spot orders waiting their turn for days. Futures day trading requires more active management, so I don’t keep more than 2 of them simultaneously. Here and there I buy option put when I anticipate down trend.

  • ⚠️‼️ For crypto I’m using amount of funds I’m happy to lose. Actually even less. I may decide to move more funds to crypto trading later, after I learn more and achieve better consistency.