In 2022, the crypto industry entered a bear market and Bitcoin prices were declining. As one of the most widely-used derivatives in the industry, futures have remained active despite the poor market performance. Futures have gained popularity thanks to their support for two-way trading and high leverage, which has allowed many investors to gain considerable profits even in bear markets.
But higher return comes with higher risk. Some beginners pursuing a high profit of futures opened a position even without choosing an appropriate strategy. As a result, many of them have suffered huge losses. This article will show beginners how to increase their win rate and earn more money through futures.
1. Allocate funds appropriately. The crypto market is plagued by great price fluctuations, black swan events and extreme market trends. Therefore, before engaging in futures transactions, investors should make a reasonable allocation of funds. The fund in the futures account should be controlled within 50% of the total investment, and the initial open value should not exceed 20% of the total fund.
2. Choose a suitable leverage. Many trading exchanges now support a high leverage for futures. For example, the maximum leverage of futures on CoinEx is 100x. However, investors should choose an acceptable leverage based on their own fund status before opening positions, which can help to reduce trading risks.
3. Set Take-Profit & Stop-Loss (TP/SL). In a fast-changing market, no one can always come out as a winner. TP/SL is the most useful futures tool, which is available on CoinEx. Investors on CoinEx can set TP/SL orders at a critical point. When the actual price reaches the preset price, the system will automatically close the position. When the price falls within the TP/SL prices, the position can be only closed by the investor rather than be closed automatically by the system. Stop-Loss (SL) is designed to be an exit strategy to limit the amount of losses for a position, and Take-Profit (TP) makes sure that your position will be closed once it reaches a certain level of profit.
4. Control the frequency of transactions. Some futures traders prefer to open multiple positions, which not only decreases their win rate but also incurs repeated transaction fees.
5. Keep trading emotions in check. One of the most common mistakes that beginners make is to lose control of their trading emotions. Losses are nothing new in futures trading. Investors should not retaliate against the market for losses, such as holding big positions for a turnaround. Emotional moves may lead to forced liquidation more easily. The loss can’t be reversed if all the original capital is lost.
6. Watch for the right trends. Investors do not have to be too anxious about the loss on paper. If the investor is confident of the market trend, he can add to the position to prevent forced liquidation. If the investor is not sure about the market trend, he can close the position and wait for the right trend to make new moves. In addition, investors can also adopt hedging measures as better trading strategies, such as leverage and spot.
7. Get involved in more futures events. While making money from futures trading, investors can watch for reward events on crypto exchanges, such as CoinEx Futures Tradeboard (5th Celebration Special). With a prize pool of up to 50,000 USDT, the tradeboard also includes all linear futures markets for profit ranking. In other words, investors who trade futures during this period will have a chance to win a “double bonus”. Link: https://www.coinex.com/activity/trade-rank/8
In principle, investors should take profits and stop losses for a higher rate of return. Especially during bear markets, it is more important to maintain a suitable position ratio for risk control. Investors can also earn more income through events such as CoinEx’s Futures Trading Volume Ranking.
* The above information is for reference only and does not constitute any investment advice.
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