Here comes the fourth part about how to trade futures and not die trying.
Imagine these two scenarios:
Scenario 1: You confidently enter a Long position, you know it's going to rise, you have no doubts, but as soon as you start, the chart begins to drop and you watch as you start losing money. You know that at some point the trade will reverse and you just need to be patient and wait... or not. Your margin may not give you the time to wait, and you end up getting liquidated, so you sweat, think, curse Binance, and panic, and in the end, you decide to wait and see your money dwindle. You look up at the sky but it's too late, it's over; you didn't even set a Stop Loss because confidence got the better of you. Now you're alone, staring at your screen and watching as it finally starts to rise, but you have nothing left to trade again... you cry.
Scenario 2: You look at the candles and have doubts; you don't know if it's going to go up or down at this moment. Whatever it is, you have to enter; you can't waste time, so you go for the safest option, enter Short, and start seeing a green candle. You exit the trade quickly, having only lost 0.78, and you quickly enter Long to see how the candle turns red and starts to drop. You were right; you should have waited, you tell yourself, and you close with a small loss of 1.32 and enter again in Short. This time, finally, the candle is red and shows a small profit, but now you don't know where it's going... you place a Stop Loss just in case and watch as everything goes straight to your Stop Loss... you don't know whether to enter again; you're confused and think this isn't for you.
What if you could have just opened a contrary position just in case? You would make money while it drops and then wait for it to rise with more peace of mind. Well, that exists and it's called Hedge Mode.
Tap the three dots at the top right on the Futures screen, find the Preferences option > Position Mode, and there activate Hedge Mode.
If you have questions, ask me and I'll help you.
Imagine these two scenarios:
Scenario 1: You confidently enter a Long position, you know it's going to rise, you have no doubts, but as soon as you start, the chart begins to drop and you watch as you start losing money. You know that at some point the trade will reverse and you just need to be patient and wait... or not. Your margin may not give you the time to wait, and you end up getting liquidated, so you sweat, think, curse Binance, and panic, and in the end, you decide to wait and see your money dwindle. You look up at the sky but it's too late, it's over; you didn't even set a Stop Loss because confidence got the better of you. Now you're alone, staring at your screen and watching as it finally starts to rise, but you have nothing left to trade again... you cry.
Scenario 2: You look at the candles and have doubts; you don't know if it's going to go up or down at this moment. Whatever it is, you have to enter; you can't waste time, so you go for the safest option, enter Short, and start seeing a green candle. You exit the trade quickly, having only lost 0.78, and you quickly enter Long to see how the candle turns red and starts to drop. You were right; you should have waited, you tell yourself, and you close with a small loss of 1.32 and enter again in Short. This time, finally, the candle is red and shows a small profit, but now you don't know where it's going... you place a Stop Loss just in case and watch as everything goes straight to your Stop Loss... you don't know whether to enter again; you're confused and think this isn't for you.
What if you could have just opened a contrary position just in case? You would make money while it drops and then wait for it to rise with more peace of mind. Well, that exists and it's called Hedge Mode.
Tap the three dots at the top right on the Futures screen, find the Preferences option > Position Mode, and there activate Hedge Mode.
If you have questions, ask me and I'll help you.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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