Dangerous Traps in Futures Trading: Are You Making This Mistake?

In futures trading, there is a golden rule that I always adhere to: never trade newly listed tokens that have been listed for only 1-2 days. This decision is not due to hesitation, but stems from experience and a deep analysis of risks as well as opportunities in the market.

1. Risk from the volatility of newly listed tokens Newly listed tokens often have very large volatility margins. Although there are times when prices rise sharply, that does not mean that the trend will continue. Lack of clear information: When a new token is launched, most indicators such as profit targets, support or resistance levels have not been clearly established. It can be difficult to determine a reasonable take-profit price. Risk of deep price decline: If the upward trend suddenly changes and the price falls, you may not know where to set your stop-loss, leading to significant losses.
2. The complexity of analyzing new tokens Although detailed research on new tokens through documents such as whitepapers or monitoring activities on social media can help you better understand its potential, however: Time and effort: In-depth analysis requires significant time and effort. In futures trading, where every second counts, meticulous research does not align with short-term trading strategies. Difficult to predict market behavior: Even with a lot of information, the cryptocurrency market is always highly volatile. The market's reaction to news or price fluctuations may not follow the logic you predict.
3. The advantages of trading on tokens that have a stable market structure In futures trading, the main goal is to make quick decisions based on a proven market structure. Understand price structure: When trading tokens with a clear trading history and volatility, you can easily identify support and resistance levels, thereby building a reasonable strategy for entering orders and taking profits. Confidence in trading: Trading on tokens that have market volume helps you feel more confident in every decision. This is especially important in futures trading, where timely reactions are a matter of survival.
4. Personal experience and advice for traders After more than 5 years of experience in futures trading, I realized that the best strategy is to focus on the tokens that you understand well. Focus on technical analysis: Use charts and technical indicators to identify trends and reasonable entry points. Minimize risk: Limiting trades on newly listed tokens helps you avoid unforeseen market shocks. Execute trades quickly: In the futures market, the speed of decision-making is key to taking advantage of short-term opportunities. Conclusion In the ever-changing cryptocurrency market, choosing to trade based on tokens with stable market structures will help you better manage risks and increase your chances of success. Remember that, while the market sometimes presents attractive opportunities from new tokens, if you do not have enough information and time to analyze, the risks will far outweigh the benefits. Wishing all traders many successful trades and to minimize liquidation risks.