People are constantly getting involved in crypto just hoping to make good quality profits. Again many are investing in this crypto to make very quick profits and dream of becoming big men overnight. And that's why the number of investors in crypto is constantly increasing nowadays. But it is also true that by investing here many people are being driven away from the market due to some mistakes and bad habits. Many do futures trading along with spot trading. Because we find in the market that futures trading is very fast and profitable. So many of us do spot trading as well as futures trading. But we know that jobs with higher profit margins have higher risk. Futures trading is no exception, there is a lot of risk involved and you can lose everything very quickly due to a few mistakes and get kicked out of the market. Today I am going to share with you some important things that you must avoid when it comes to futures trading. Then you can protect your money to a large extent and also earn profit through futures trade.
)
[source](https://pixabay.com/photos/stock-trading-monitor-business-1863880/)
|
**Leverage**|
|-|
The first thing I would ask you to focus on is avoiding excessive leverage. Because it is very important in futures trade. Because you'll be shooting yourself in the foot by using excess leverage. Because excess leverage will bring you so close to your liquidity value that you will easily run out of funds when market volatility occurs. So in this case you must use less leverage. The less leverage you use, the less likely your trades are to lose.
|
**Use of funds for purchases**|
|-|
The second thing I will discuss with you is the amount of funds you will use to enter the market. It is also very important. Because many of us mistakenly do not enter the market with full funds and as a result we very easily face our liquidity problems and lose our entire money. In our opinion, the smartest thing to do is to use at most 1 to 2 percent of your funds to take futures trades. Then you can be very safe no matter how volatile the market becomes.
|
**Market sentiment**|
|-|
The third point I am discussing in this case is the market sentiment you must understand. Otherwise, if you take long or short trades without understanding the market sentiment, then your chances of losing money will be high. Because these types of trades are risky so you must take these things seriously then you must be able to profit from the market otherwise you will lose your entire money.
Hope you must have understood about what I have discussed. If you are a future trader you must follow these points and also avoid excessive greed. Because we all know one thing, "Sin to greed is death to sin". To learn you need to understand the market conditions and take trades and also avoid frequent trades. Then you can profit from this type of futures trade. But another important point is that it is better to avoid such trades as much as possible. Because it is very risky and if you look at the market you will see that most of the time when the price of Bitcoin becomes unstable many people lose their entire money due to lack of liquidity.
