First I would advise that you stay away from it if you're a beginner trader, Strategies to profit from perpetual futures trading are simple but require experience and knowledge to implement effectively. The first strategy is to use market analysis tools such as technical indicators, chart patterns, or support/resistance levels to identify profitable trading opportunities.To trade on Binance Futures and make a profit, you need to learn the basics of futures trading, develop a trading strategy, practice with a demo account, manage your risks, and stay up to date with market news and analysis. You can also seek the guidance of a professional trader like myself and any other you’re familiar with for education and mentorship, but be cautious of scammers and do your research before investing time and money into any trading program.cryptocurrency.
Trading cryptocurrency is considered to be cutting-edge and is based on an assumption that doing that is something that is in alignment with a technology mindset as opposed to trading wheat or pork bellies. It was the same just a few years ago with trading currencies in the Forex market.
I have found that trading cryptocurrency is the same process of trading other financial markets. By learning technical analysis and studying market behavior it is possible to see on the charts the points where it is cryptos are likely to turn. If you study charts you can actually see how the patterns formed by Bitcoin is related and similar to chart patterns of the stock market and Forex currencies.
My Story: Starting at the beginning of my futures trading; January 2nd, 2022:
I starting with one contract at a time and quickly graduate to 4 contracts at a time, after only a few trades. Most of my trades were very short in time frame from entry to exit. Sometimes less than 5 seconds and frequently less than a minute in duration. I made nearly $500,000 my first month, which was more than I made in the previous 3 years in my business. My account grew from $1,034,000 on Jan 2022 to 2.6 million dollars from January 2nd to the 3rd week in March. Incredible, I thought. I was on my way to great wealth. However, my inexperience with loss eventually caught up with me. Roughly, 70% of my trades were profitable from the start. On the other hand, I had no predetermined risks in my trades. I did not analyze the risk / reward ratio of any trades I undertook. In fact, I didn’t really have a plan for where I would cut my losses as I felt I would know when to get out.
Since I began with a 7 figure account from years of investing and saving, I wasn’t too concerned about the losers. That was a big judgement error. Even though I had already had a couple of 6 figure losses by the time I reach 2 million, and I vowed to not allow excessive losses to continue, I apparently had not felt the pain of loss that one feels when they are about to go broke. The belief that I could not fail was what I was feeling. My skills were amazing and the money, in general was piling up, so to speak. Once I surpassed 2.6 million, less than 3 months and thousands of contracts after I had begun my futures trading journey, I let a loss run for 2 days that I finally closed out with a multiple 6 figure loss. Practically back to back I did the same thing again. As the Nasdaq rebounded in Late March, I continued to try and short the market, each time the rally turned just a little or lost momentum. My losses took my 2.6 million dollar account to $850,000.00 in less than 2 weeks. I had actually lost a fortune. At that time in early April, I considered that I wouldn’t continue if I couldn’t turn around my losing streak.
From my understanding, this is not an unusual scenario in the highly leveraged futures market. It was my reality and it cost me lots of sleep and I noticed myself going from the idea of buying a second sportscar, a new 911, to paying attention to the dumbest cheap things. I didn’t allow that for long, but recognised I had to pull myself together, accept where I was and do something about it. Since I could no longer take on the large positions, due to my diminished capital, and in following the wise words of someone I follow on youtube, I decided to restart by keeping my positions very small until I could rebuild my confidence. The next two weeks, my account went up, but at a rate that was appreciably lower than anything I had encountered so far. My trading was improved as I was more selective on what I would accept as an entry. So, it went for two weeks. The third week I surpassed 1 million dollars and in the next few days after that, I got back to break even for the year. Today is May 29th and I have built my account back up as high as 1.7 million dollars, but currently sit a 1.44 million after 3 consecutive days of losses as the market is rallying. There are certain things that I still do wrong, outside of what I know to be smart. Even when I am doing them, I amazing questioning if I should. My self discipline is my biggest enemy. On the other hand, since I recognize this I am going to do something about it.
As a trader, one has to continuously review your past trades, failures, winners and reasess behavior in as unbiased and out of the box you’re in, manner as best as possible. I believe that the reason people win or fail in futures trading is one of self discipline and self control. Understanding price action and movements and gaining an eye for spotting the best trading opportunity, may not be the most difficult part of trading. I believe it is the psychology that creates a winning trader. The ability to view money and trading as separate
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