Trading in Futures: I already doubled my capital

May 18, 2022. No. 248

Just a few days ago, I published the article: Trading in futures. Can your capital be doubled? where I indicated that I had started trading in the future with the hope of learning little by little and obviously being able to double my money like so many other traders do or at least claim to do.

For me, it was an experiment. The money I was going to invest was $52 usdt and I was willing to lose it if things went wrong, but I really wanted to learn. Studying and watching videos on youtube I perfected my short-term strategy, making few profits that were barely around $2 usdt on average since the fee was relatively high on many occasions. I started with low leverage, x5, and then I increased it as I generated more income and better analyzed the situation. I have even put a x50 on it, but only twice I think, basically, I stick to x20 or x25 depending on the situation.

The transaction fee when I close is much higher when I do it directly in the market. When I close like this directly, it basically takes away more than $2 usdt sometimes from the fee or even $4 usdt I have seen. This made all the operations that I have negative except for one of them that I had to close because despite being positive, the fee was very high and I went down to negative. So I learned to close with a limit. When you close the operations with a limit, the amount that is removed from your fee is less because you are offering those assets to the market and offering liquidity. At least I understand it that way with what I have been able to read about this situation.

Everything was going well until this morning, when I had $98 usdt, almost about to double my capital. Only 6 usdt were missing to achieve the feat. But I did the wrong operation. I went long when the BTC price was at 29970, with x25 and a liquidation price at 28,900. It rose a little above 30,000 and I did not take profit. Then it started to plummet. I had to accept my losses at -14.84 USDT including the rather high fee of $2.83 because I closed on the market. I saw my capital drop to $84 usdt in minutes, but I didn't feel bad. It was the first time that I had to close in the negative of my own conscience, but I accepted that you cannot always win and that it would not be the first time that the price would go against me. So I made two more short trades as I saw that the market was bearish.

The second operation I let it run, which I had never done. Curiously, the human mind, at least mine, prefers to let losses run and cut profits when it should be the opposite. I put a limit at 28,880 and wait. The price of BTC crashed and I hit my limit, earning me $31.89 usdt. Take into account that if you had not accepted the previous losses, you would have lost everything.

In this way, it reaches $118.40 usdt. Having started with $52 usdt 3 days ago, I have now increased my capital by $66.4 usdt, which represents 127.7% of it.

In total, I have performed 32 operations. Of these, 24 have been positive, representing 75%. The refusals have been 8 and represent 15%.

I'm still learning…

Note: Trading is highly risky. This is not a guide for anyone to perform the same procedure. Study and execute it with risk control.