Crypto Futures — Best Practices for Learning
- Forget about the money. You are learning an elite sport. You will need to train hard. You will not be making money anytime soon. If you can’t accept that or are chasing gains, don't trade futures. period.
- Don’t pay for anything (except MAYBE journaling software). No paid groups. No paid signals. You are trying to get good at trading, not copy trade someone who is very likely scamming you anyways.
- Journal your trades. My recommended setup is as follows. Journal each trade as you take them in twitter threads (you can make a private twitter account for this). Include screenshots and updates for additional orders you fill for the trade. At the end of the week / month, do a trade review. Write 500 words about what you did well, what you need to work on, reoccurring problems. Etc.
- Have things outside of trading you enjoy. If trading is your only dopamine hit, you will force yourself into garbage trades when you know you shouldn’t. Exercise, music, video games, whatever. Just don’t depend on trading to be happy.
- Be prepared for the long haul. Trading (well) takes time and patience. Everyone is different, but your goal is to improve. Focus on that goal, don’t worry about the market or feel like you could size up to try and make more money. You are learning. Accept it.
- Don’t trick yourself into thinking you are profitable when you might not be. A month of good trading does not a profitable trader make. I think at least 3 months + of seriously consistent trading is when you might be able to start taking things to the next level. But that also means no lying to yourself, “Well don’t count that one mistake I made, I wont do that again, so really I’m basically profitable.” No. You blew up? Reset the clock.
- If you want to be a price action trader (primarily how I trade), then don’t use really any indicators at first. Learn basic S/R and price action trading. Then spend the rest of your energy working on your mental game / risk management. [see https://tradersamwise.medium.com/crypto-futures-what-is-good-risk-management-9cb1df344b26]
- If this all doesn’t sound like you, THAT IS FINE! Most people won’t make money trading futures (of any kind). Investing is typically safer, swing trading futures is also often safer. Don’t feel bad. And if you don’t enjoy the game you aren’t going to make it. No shame in walking away.