$FOLKS If you want to GENERATE consistent profits in Binance perpetual futures, you need to understand that the key is not to guess, but to control risk.
The main mistake is to obsess over leverage, that big number like '20x' or '50x'.
I tell you that leverage is just a tool, what really matters is how much you are willing to lose.
The golden rule is 2% Management. This means that you only risk 2% of your total capital on any individual trade. For example, if my capital in the futures account is $100, my maximum acceptable loss on a trade is only $2. Never more than that. If I lose, my account remains almost intact.
Once I have that value clear ($2), I calculate my position size. If I enter a cryptocurrency at $10 and I place my Stop-Loss at $9.80 (a difference of $0.20), I adjust the number of contracts so that that $0.20 difference against me costs exactly my $2. The number of contracts comes from my risk ($2) and my Stop-Loss ($0.20), never from leverage! This is what gives me control.
I always use Isolated Margin to ensure that if something goes wrong, I only lose the margin of that trade and the rest of my $100 is protected.
Leave scalping aside if you are just starting. I prefer to look for Swing Trading opportunities (trades that last several days) on 4-hour charts. This way, I can capture larger movements and my Risk/Reward ratio can be 1:2. If I risk $2, my target is to gain $4. This is consistent.
Finally, discipline, never move the Stop-Loss against you. If the market goes wrong, I accept my loss of $2 and wait for the next trade. Liquidity and survival are the number one priority.
Have you tried the demo mode of Binance futures before using real money?.
🖇️ Futures trading is highly risky. Only invest what you can afford to lose.
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