A word of caution is enough for the wise. I'm sharing this because of a close friend who saw me trading a few days ago and thought it was easy after watching some YouTube videos. He bought XRP futures and lost up to $1,000. Ironically, he later came to confess to me, which was already too late, as his overconfidence had led him to neglect setting an SL. I helped him fight for liquidation protection, and he managed to get $100 back
here due to his larger trading volumes.
Now, he's back to learn from me. What advice should I give him?
The rate at which people lose money to future trading is alarming especially now that the market is choppy and they aren't moving well. I'm very sure that your friend doesn't know how to trade properly, I will rather lose some dollars to stop loss than lose everything to liquidation, you can never go wrong with stop loss unless if there is high volatility of that coin and I mean if the price spike up and down and then return to where it was trading.
I was enjoying futures when Bitcoin price was going up but one thing I never did was using high leverage, that way I don't use stop loss only if I'm sure the market price will quickly go back to where it's trading and I don't trade all coins, I'm very reserve with Bitcoin most of the time, XRP is just that coin that is all about insider doing their lobby to move the price and after a while, you will see the price going down again, not good to bet on such coins on future.