My first experience using "futures" was probably...a not so good one

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(Edited)

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The last few days I don't really feel like writing posts. Dunno why, maybe it's just a phase everyone is going through...everyone that has been active consistently since day 1 I guess...and little or even big breaks from time to time sounds like a good option at the moment. The funny thing is that it was unthinkable for me to not write my daily post and "contribute" with my casual way to the ecosystem all this time.

This doesn't mean that I am not active of course. Reading interesting posts, curating and engaging works just fine to be honest. As a matter of fact when one is not entirely concentrated on their blog comes across some very interesting posts whose authors definitely worth to be followed. Those little gems...ya, the hidden ones.

Anyway, this is the reason why I spend most of my time when I am not reading, in discord channels. Like it or not discussion in real time is what I miss most these days...you know...the Corona days. So...

That being said, I had a really interesting talk with @nealmcspadden in a discord channel yesterday afternoon. I've always wanted to try "futures" trading - hadn't tried this one out - and when there are unanswered questions regarding trading / economics etc, then usually Neal is the guy who has all the answers.

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I thought that "futures" would be pretty simple to understand. Besides I've been trading stocks for years and I also possess 2.5 years of experience trading cryptos. So how difficult could it be?

How difficult...?


Well, in the beginning I didn't understand wtf was he even talking about. No shit. Then he started using terms such as "value of time..." and things went out of control...

I had questions. Like tons of questions. What's this and what's that and why not to use 32x leverage instead of 15x ... I am sure that for a moment he must have felt like he was trying to explain rocket science to a 5 years old kid...


But he's a really patient guy and tried to explain to me everything from scratch...more than once.

After 30 minutes or so, I had finally - I thought I had - understood everything.

Was that all? I am gonna be fuckin' rich baby...whooooha!!!


-Ok so I'll send 0.1 BTC worth of usdt to my futures wallet on Binance and place my orders. OK Neal?

-"Are you sure? That's a lot to start with. Send 0.01 BTC or even 0.005 BTC just to see how it works."

-Hmm, you're probably right...

Get rich or die trying...


I converted 0.01 BTC to usdt, sent it to my futures wallet chose the BTC / USDT pair, leverage 20x bought at 8875 I think.

Could have been easier.

But then again..."Yo Neal, what does "liq.price mean"?

-Oh, that? It just that the market will automatically sell your order if BTC hits that number...

"Oh that's all?

-Ya.

"OK, thanks buddy."

Long story short. The top blue line was my entry point. The bottom blue line was where I was gonna say goodbye to my money.

20200501 18_21_218,836.98 _ BTCUSDT _ Binance Futures.png

Well, I think you understand how things played out. Just look at that damn red candle...

I thought I was kinda safe because a few hours ago BTC had reached $9.5K and a relatively big correction had already been formed.

Never underestimate how volatile BTC is...ever. $800 - $1000 in either direction is normal. And who cares, right? As long as you trade in the old fashion way.

I am telling you...that's adrenaline rush...

Lessons learnt...I've placed a new bid regardless...that's what a proper crypto junkie would do, right?

So, do you use futures? If so, what's your experience so far? Are you broke yet or what?

Have a great month ya all...and stay safe!

Cheers.



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13 comments
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Man Im like you Ive got different cryptos in my bag and want to try the Futures option on binance. Any video resources that you could recommend? I dont have that friend like you 😅

And yes you are right its extremely volatile even in pre pandemic recession times, now its a lot of risk and with the halving coming another variable to add...

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Video? Mate I should start watching full documentaries to make that shit work. 😂

Thank god there a few people in leofinance discord where they can help us both out

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I confess, I use futures as well and I have to say that it's pretty addictive. For the moment I managed to keep my future wallet safe, without being liquidated I mean, but I have been in almost liquidation phase more than three times the last 4 days.
I am leveraging only 10x btw.

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Ya, I thought 20x wouldn't be that risky...silly me

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Trading is something I've always been skeptical about. Yes we all trade our crypto at some point but day trading or any form of speculative trade is difficult, even for the pros. I know little about it and probably it's best that way.

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I know little about it and probably it's best that way.

It's def better this way bud. I mean all it takes is an irrational decision and bang, one can lose everything.

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In Bybit there is the stop loss order that you place before the liquidation price in order not to loose your money. Binance does not have such an order?

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Of course it does.

It's just that my 1st attempt was a complete fail. Lost ~25$ ...no biggie.

I digged a bit deeper and found all the little details. You know, if one doesn't get too greedy they could make some serious profits. Jokes aside

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Well, thats very true! but you must put a lot of money to make a nice amount easily and daily. You dont get greedy, you have a stop loss order and you are fine:)

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You should have told me about that limit order man. Now I want those 25$ back. 😂😂

I read in a nice article that the ideal leverage one should use when they trade BTC and ETH in futures is 3x.

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I think that x3 is rather small, i use x10 as a minimum but you need to put a good amount of money in order to have some gains by a small movement, either up or down.

Not a financial advice,lol

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