FAQ the ABC of trading

How start for a beginner

If you’re new to trading first of all you should start by studying the market (our Discord channel will help you with this) and the risk management strategies that the most successful traders follow. We’ll gladly provide you with our educational materials to learn that. When you have mastered the basics, you may go and invest more capital. Therefore, the main rule for a beginner is to invest no more than what you can afford to lose. Unfortunately, statistics show that most beginners lose their deposit in the first months of work. Market volatility plays on emotions and only experience allows you to recognize its false movements. We never encourage subscribers to rush and buy something at a market price, on the contrary, we teach patience and careful planning.   We would advise anyone to start from a small amount. The amount that you could afford to lose without affecting your lifestyle. It’s recommended to use 0.1% of your capital per 1 position.  

How much profit will I get per month ?

This question does not have precise answer. You should understand that we can’t promise you money. Mostly it depends on you as a trader. Signals are like roadmap. We show places where it is best to enter the race and most dangerous spots, where chances of price to be rejected reach maximum. Each trader decide for him/herself the level of risk and where to enter and exit. 5% profit has a 75% success rate. If you want to play safest of the safest, take only this profit and calculate the amount you will need. 10% profit has ~82% success rate. Trade with more risk, take more profit. In this case trade with a smaller amount will give you the same returns. The higher the profit, the lower the success rate and the higher the risk. With our signals, it’s entirely possible to make at least 4-12% per week at leverage x15 using a consistent strategy, such as risking 0.1% of your balance on each trade.

Which exchanges did we support ?

Wise Analyze provides trade calls for all the major exchanges. These include BitMex and FOREX / Oanda.

How many signals do you post for every exchange ?

We post signals when we see opportunity. The amount of signals depends on the market conditions which may vary from day to day. Average amount of signals can be around 1000 per month (+/- 20 depending on the market conditions). Daily it is usually not less than 2 signals, sometimes up to 5-6 signals per day.

Have you a trading bot?

Yes, we use CashBot.Club Data Service and is set up by API and follows signals automatically or by pressing button “Login” in our App. You can set up it for yourself. There are different settings available. All functions are without Withdraw Function setup at API.

     

ABC of TRADING:

Crypto Futures Basics: What is liquidation, and how do you avoid it?

TL, DR :

Leveraged positions are subject to volatile price fluctuations, which can cause a trader’s equity to plunge instantly into a negative balance. In these situations, losses can exceed the holding margin. Liquidation mechanisms help prevent a trader’s account from falling into negative equity. There are tools available to prevent liquidation from occurring, such as monitoring margin, using stop-losses or using lower leverage. Getting into trading can be pretty intimidating. So must Some many rules and opportunities must be considered before entering the world of futures trading. One of the keys to success with trading is to carefully design each trade and understand how much capital is at risk.

Crypto Futures Basics: What is liquidation, and how do you avoid it?

TL, DR :

Leveraged positions are subject to volatile price fluctuations, which can cause a trader’s equity to plunge instantly into a negative balance. In these situations, losses can exceed the holding margin. Liquidation mechanisms help prevent a trader’s account from falling into negative equity. There are tools available to prevent liquidation from occurring, such as monitoring margin, using stop-losses or using lower leverage. Getting into trading can be pretty intimidating. Some many rules and opportunities must be considered before entering the world of futures trading. One of the keys to success with trading is to carefully design each trade and understand how much capital is at risk. Especially in futures trading, where leverage is readily available, knowing the capital and power invested in trade will help you understand your total risk exposure, as in some cases losing trades can end up being liquidated.

What is liquidation in crypto futures trading?

Traditionally, liquidation is a term that means converting assets into cash. In futures trading, liquidation is something to be avoided whenever possible. With crypto futures trading, losing positions are forced out to prevent traders from falling into negative equity. Leveraged positions are subject to volatile price fluctuations, which can cause a trader’s equity to plunge into a negative balance instantly. In these situations, losses can exceed the holding margin. As a result, losers are liquidated. This process is involuntary and automatic if a trade meets specific price criteria. Liquidation can occur slowly or quickly, depending on the amount of leverage used in a trade. For example, liquidation will not happen with lower leverage levels as soon as a minor correction occurs in the market. On the other hand, higher amounts of leverage can deplete a trader’s initial investment with little or no effort.

When would liquidation occur?

A forced liquidation process occurs when an investor or trader can no longer meet the margin requirements of their leveraged position. Let’s take a simplified example. Let’s say you were to open a trade with $100 and a leveraged long position in BTC/BUSD. The leverage you used is 20x, which makes your work worth $2000. If the price of BTC were to fall by only 5%, you would completely wipe out the initial $100 margin. If you can’t meet the margin call requests to keep the trade afloat, your position is now at risk of being liquidated. While this is a basic example, it is crucial to know your limits, how much you are willing to lose on a trade and be strategic with leverage. Is This especially true with the volatility of crypto-currencies? That’s why we introduced leverage limits for new accounts to protect our new users from the dangers and unintended consequences of using high leverage. At Binance, we believe that all of our clients need to understand the impact of leverage and the circumstances in which it can significantly affect the likelihood of a profitable trade. However, we also believe that allowing excessive force is not in the best interest of our clients, our firm or our industry. Learn more about how to reduce your chances of liquidation on our support pages.

Three tips to avoid liquidation

There are ways to avoid liquidation in a less general sense. Traders should remember that it is always possible to lose trades, but liquidation does not always have to happen. There are tools available to prevent this and more intelligent trading strategies to consider, such as monitoring margin or using lower leverage.

1. Use a Stop Loss

First, the most obvious answer to avoiding liquidation is to use a stop loss above the liquidation price. A stop loss is a trading tool offered by most exchanges that allow traders to automatically set a selling price if an asset’s cost falls or exceeds this predetermined price. By using a stop loss in conjunction with a liquidation calculator, traders can protect their funds from loss as a whole, particularly from liquidation. Although you may still lose funds, the stop loss tool will protect you from losing everything on trade and having to pay liquidation fees. Besides, who wants to lose and be penalized for it? By using a stop-loss, you can prevent that from happening.

2. Use lower leverage

Leverage has a significant impact on the longevity of a trade. While it may be tempting to use large amounts of power, lower levels of force will always be a safer route. High use of leverage can indeed lead to significant gains. However, it could also magnify your losses. As shown above, high leverage can hurt a trader even when a small price change occurs. Using lower force will help you navigate a volatile crypto market smoothly and safely.

3. Monitor the margin rate

Another option traders can implement is to monitor the margin ratio. When the margin ratio reaches 100%, the position will be liquidated. To avoid this outcome, traders can add more margin to their trade and reduce their work (back leverage). This method is similar to holding a position when the ratio approaches 100% (when the business is headed further in the wrong direction). Adding more margin or reducing leverage is like starting with less influence in the first place. The difference is that maintaining a specific margin ratio can be done over more extended periods and is a dynamic solution.