4 Tricks to Never Choose the Wrong Leverage in Futures

[00:01] 50,000 on this screen here, simply because I chose the wrong leverage. Five times, 10 times, 50 times. Man, I've blown up a lot of accounts here because ideal leverage. But after I learned those four tricks, I never made a mistake again when

[00:15] you want to start learning about the Futures Market without burning money, just tricks you need to learn when teach you step by step. Hi, my name is Henrique and in recent years

[00:28] Futures Market, but I've also lost a lot of money, especially in the beginning. And when you're looking at capital leverage within the futures market and this little leverage button here, there's a lot you have to think about

[00:41] a trade with any leverage, only thinking about how much you can earn, beginner and stumbled upon this video and don't know how minutes of this video to explain to you, as a beginner, how

[00:55] minutes. And if you already know how to use it, simply use the chapter index below to advance to the part that interests you most. Let's go. Well, when Futures Market, we're talking about a screen that looks more or less like this one

[01:08] here, or like this leverage screen here . First, in order to , you need to have an account with a brokerage firm. The two exchanges I use and trust are Binance and By Bit. If you don't have an account with any of

[01:20] in the description, and by subscribing through the channel link, you'll get a trading fees. So, to open these futures market operations, we operation open. If you join through my link, you'll pay lower

[01:33] for it, and you'll be helping to support this channel. So, I'll leave the links for both Binance and Bebit exchanges below. These are the two that I is leverage? What is this little button here? In

[01:46] simple terms, leverage is basically the function of a brokerage firm that allows you, with less capital, to open a buy or sell order for an asset at a value higher than your actual capital. So, when you have

[01:59] in the market because, for example, we have a traditional cryptocurrency market, which we call the spot market. And let me explain something to you cryptocurrency market, you know, the traditional market, if you buy bitcoins,

[02:12] hold Bitcoin and wait for it to appreciate, you're at a disadvantage. Imagine you have $, you buy Bitcoin here at 108,000 and then Bitcoin appreciates by 10%, you'll get 120,000. If you have money, you'll earn 10% on your money.

[02:29] Therefore, your profit will be very low because you have little capital. So, to have a chance of earning a higher amount, you'll have to , which you can operate in on both Binance and Bybit. In the

[02:42] futures market, it's different. You can invest $ in an asset, for example, by Bitcoin in your wallet. You're entering into a Bitcoin futures contract, a an asset that's paired with Bitcoin, whose price moves in the same direction. And you can invest $

[02:57] you're going to come here to the brokerage and set this little button here to 10. You can set it up to 100, but I don't recommend it. I 'll explain why. In this video I'll explain everything about it, but let's assume you invest 10 times here

[03:10] on Binance or here on Webit and also use 10 times leverage. This means that if you deposit $10, your position will be equal to $1,000. It's like you're buying dollars. 1,000 in Bitcoin instead of 100. And with that

[03:23] same 10% appreciation, you would earn 10% on top of 2,000. And at 10% of 1000 you would earn more money. You would double your capital with just a 10% variation,

[03:35] briefly here, but I can show you a quick demonstration in practice right away. Let's make a buy order. I'm currently here with 10,109 in my account. If I withdraw 1% of my account, I'll be withdrawing $95. 95 x

[03:52] account, I'll be withdrawing $95. 95 x 10, which is the leverage, equals 942. Actually, it should equal 950. Henrique, that eight difference is the fees I said, if you join through me, both on Binance and

[04:04] fees when opening those trades. So it's normal that you put a you are using from your account. This purchase value is the amount you will buy" here, I opened a position investing 94, multiplied it by 10, and now I have a

[04:21] 94, multiplied it by 10, and now I have a proportional to this. No matter how much the market fluctuates—1%, 2%, 3%, 5%, 10%—I will profit based on that leveraged value. I gave a very quick summary; both

[04:35] below. And if you don't understand anything about leverage, there's a leverage in detail. A 20- minute video detailing every aspect, every pro, and calculation of leverage. I'll leave the link here in the description; it's this video

[04:49] leverage works in the futures market. I recommend you take a look. I also recommend that if you don't know how to trade futures, you watch this video here, Binance Futures tutorial, which is a complete video teaching you how to

[05:01] futures. There's a video on both Binance and Bebit. Just search for Henrique 7 Binance Futuros or Henrix 7 by bit Futuros and you'll get a each exchange, step by step, click by click on how to open a trade and all the

[05:16] . Zero point. Once you understand leverage, what's the first leverage table, which basically allows you to leverage your capital up to 100 times, isn't recommended, right? In some assets it goes up to 125, but here it's

[05:30] crazy, I won't even talk about 125, I'll talk about up to 100. Okay, I made this little table my Telegram group. So, join my Telegram group, the link will be below. Yes, the link to that table will be pinned there in the conversations.

[05:42] Basically, this table shows how much leverage we need to double our capital or to be liquidated. In this case, the amount of leverage and the percentage that we need. For example, if you enter the

[05:55] leverage twice, it means you 'll have R$20,000 in that asset. And if the market goes up 50%, you'll earn 100% of your capital. Or if the market

[06:07] drops 50%, you'll be liquidated too. So, the same percentage that doubles your capital in the futures market liquidates your capital and takes you leverage 10 times, you get 1000, leverage 10 times, you'll get 10,000.

[06:21] If you earn 10%, you make 100% of your capital. But if you lose 10%, you 'll lose all your capital. So, the first thing is for you to understand this 100. I've put the most commonly used ones here, which are 1, 2, 3, 5, 6, 7, 10, 15, and 20. In short,

[06:37] this entire table here will contain the observations. So the same percentage that doubles your capital liquidates you and takes you out of the operation. So it's a high-risk, volatile market, and you're dealing with something that's

[06:50] attention because there are four little things that, if you don't think about them when you're trying to leverage your business, you'll do it wrong. So let's go . Four criteria, four tips, four things I look at before choosing leverage in a

[07:04] consider, when choosing which leverage to use, is how volatile the asset you're trading is. For example, if you're trading assets like Bitcoin, Ethereum, XRP, BNB, or Solana, which are the top six, five coins

[07:19] in the ranking, Bitcoin has a market capitalization of over 2 trillion, and the rest here have 400 billion, 200 billion, 100 billion. So these are assets that are so large that they move very little. So, for Bitcoin to move 10% is an

[07:33] extremely aggressive move. It happens, but it's aggressive, both upwards and Bitcoin, Ethereum, the largest assets in the market, the

[07:45] less volatile it will be, and this automatically allows us to use more leverage safely. So, other smaller assets, for go to the second page, this top

[07:58] 200 here, HNT, Gito, any other coin that isn't Bitcoin, Ethereum, right? Any other coin that isn't that, like an altcoin or memiccoin, will be extremely risky because those coins move a lot. So, there are

[08:11] currencies that move 15, 20, 30, 40% in a day, and if you use high leverage, remember that the more leveraged you are, the less fluctuation you need money, understand? Risk and reward, they always go hand in hand.

[08:26] going to trade? Will you be trading Bitcoin or Ethereum? Are you going to acquire another asset? So, with Bitcoin Ethereum, I can even get up to 20 times the return. So, I'll tell you years of experience , both trading and observing

[08:39] other traders, and interacting with other traders, I believe leverage is the most commonly used method. operations I can use leverage, which if I use 20 times leverage would give me 5% liquidation, because Bitcoin moving 5% in a day

[08:53] moves slowly because it is very large. Okay, then. First, we need to know what type of asset it is. Secondly, what type of operation are you going to handle and what is the size of the transaction?

[09:05] I'll summarize this quickly so the video doesn't get too long and I don't take up too much of your time teaching you quickly. Well, there's a type of trading we that can last weeks, months, or even years. That's when you want to capture an entire

[09:19] movement, a whole movement within the chart. For example, I saw a trader who made a trade in Bitcoin here, here, look, 2023, at 15,000. And the guy held onto that trade, he scaled that trade for 2 years. The guy got over

[09:34] 600%. So, I saw a guy who basically kept an such a large trade, you basically want to capture the entire trend movement that will last for months or even years. This is rare, but some people

[09:47] The decision to make a trade is made by analyzing a weekly or monthly chart and using very low leverage of three or five times. Why? Because keeping these trades open means you have to pay fees; it requires fees. So the

[09:59] more leveraged you are and the longer the time passes, the more fees you pay, and money to keep the operation open. So normally you don't spend that much 's extremely profitable. And normally, I think I've never seen

[10:12] . I've already seen one year, right? A guy said he was going to open positions from 2023 to 2024. I do n't know if he closed that same trade. Probably yes, but there are people make these kinds of trades. In this type of trade, the maximum leverage is three to five times

[10:27] that's mostly done by experienced people. I've done a trade like that before. I once kept a trade open for 9 months. Let me show you. I think I stayed even longer. Actually, I had this trade here where I made R$70,000,

[10:42] R$400,000, it lasted almost 9 or 10 months with the operation open and paying fees. So, the leverage was five times, oh, the leverage was very low. If you're going to trade, which are trades that can last for days or even a few weeks with the goal

[10:56] then in that position, we want to capture that entire movement. In swing trading, we want to capture a small part of this price movement here. So basically, we want to capture a larger percentage, and that could last for days or weeks. In this

[11:09] type of operation, we analyze the chart of a day, 4 hours, or 1 hour. operation, the shorter its duration, the smaller the timeframes we use corresponding timeframe. The leverage we typically use is five to

[11:23] swing trading, it's five to ten times at most, depending on the size of the asset. If it's an altcoin, I'll buy it three, five times at most. When that we open and close on the same day. So these are operations that last for hours.

[11:37] We typically perform analyses at 4-hour, 1-hour, and 15-minute intervals. And the leverage for day trading is 10 to 20 times. So, day trading involves quick operations that I do in one day. This here is a one-

[11:49] hour chart. I analyze the one-hour chart and trade with 10x or is something I do a little more often, I do it sometimes, these are operations that last minutes, very high risk, analysis of 5 minutes or 15 minutes, which are

[12:03] actually 5 minutes or 1 minute, but the most common is 1 minute leverage of 50 to 100 times. I don't recommend this, but Enrique, you can do it , but I know how to do it after many years. Don't get emotional, don't try to do the

[12:16] right? You can learn from me. Henrique, do you have courses to sell? I don't have. . I'm opening a course for you because it's been two years since I last sold any kind of content. If you're on my Telegram, ask me on my Telegram. I

[12:29] below so that if I ever open it, you 'll know about it on that list. So in this type of scalp trading operation, it's operations of 50, so instead of leverage, it's too aggressive. It's with very small amounts, trying to

[12:41] first thing you have to ask yourself is, what asset are you going to trade? The second factor depends on the type of operation you are going to perform. In a day trade, how long will this operation

[12:54] chart analysis, like, dude, how long could this movement last? So, for example, right now Bitcoin is at 117,000, and I'm even commenting on which Bitcoin value now. My theory is that Bitcoin will eventually reach 140,000, 150,000. If I'm

[13:09] wrong, please comment below. Rick, you messed up, you did n't quite get there, it fell apart from there, I don't know. You from the future, comment on what Bitcoin's peak was in the cycle, because I haven't figured it out second, the third most important thing is how much you're willing to

[13:22] lose in a trade. Like, dude, how much do you want to lose on the trade? I know it 's contradictory because we plan to make money, but actually necessarily think about how much it can deliver to me; I think about how much it can give me. Obviously, we have to

[13:35] think about whether it's worthwhile, but the first thing I think about is, like, how much am I willing to lose in this trade without it affecting my account or affecting me psychologically? So, for example, you make an initial investment of $,

[13:49] Henrique, of that $, I'm willing to lose 50% of the investment. So, 50% of the entry is equal to 50. Therefore, the maximum you can lose is 50. And this, you know,

[14:02] will define how many times the leverage you will use, because if I only accept losing half the capital, let's go back to the table. If I make a leveraged trade five times, that means the market has to

[14:14] fall 20% for me to lose everything. So, to lose half I would have to divide that by two, which is 10%, right? Half of this, if I operate with 10 times leverage, means that the market can only fluctuate 5% against

[14:27] you have to go back to this leverage table, which I'll leave here somewhere, and observe it, and memorize this information. And the fourth and most important thing is basically the entry point that you defined where you are going to

[14:41] an operation and I'll be going to enter at this point. To what extent do you believe that the position? And then I'll show you here, for example, Solana. Look at this. Let's do a very brief analysis of this . This here is a

[14:56] , where the market is going up, price found support and formed a hold. What is a support? The two taps. When he scores two touches, we

[15:09] already mark him. So this turns into a mini stand, right? It becomes a trend line. And then came the third touch. Many people will join on the third beat, and that's fine, I do that too, but I would join on the fourth beat.

[15:22] Considering that we have this history here of one touch, two touches, three touches, we saw that basically the market here broke through, look, 4.5%, 5%. Here it didn't break at all, and here it broke about 2% more or less. So,

[15:40] if I were to enter the market at this exact point , I would say that it won't go , I would say that it won't go down more than maybe 5%. So I would put my entrance right here. Here, this green marking would be

[15:53] the entrance. So I've decided that my entry point will be here and my stop loss will entry point will be here and my stop loss will be 5% below this. 5% below that is 119.35. So here would be my stop los liss.

[16:06] And then you saw that the policeman touched us here and then went upstairs. So it can happen that the market there goes down a little bit, it gets a little negative, it little bit, it gets a little negative, it doesn't go down 5%, it goes down 1% there and

[16:19] then goes up, right, 16% there. And whoever took on So that's more or less the logic you have to follow, because if I enter at this point and I know that the market will at most not fall by 5%, you

[16:32] have to do your analysis. Henrique, I think the market won't break through more than 5% from this low point. So my entry will be here at 125. So if your entry is here at 125, okay? 5% stop loss. With a 5%

[16:46] stop loss, if I accept losing only half of the money I invested, I can use 10x leverage, because 5% would take away 50% of my capital. And in this operation here, you would have gotten 16%, meaning you would have profited

[17:01] 16%, meaning you would have profited 160%, right? That's 16% x 10, you would have 160%, right? That's 16% x 10, you would have profited 160% on your capital. And that's futures market and make money, even with little money. There's not much of a secret; it's

[17:15] learn a lot, especially from me, who makes a living from this and has been doing this for years. So, in summary, if you believe that from the point you entered, the price won't fluctuate more than

[17:27] 5% against your position, and you'll lose a maximum of 50% of your entry value, a maximum of 50% of your entry value, then your ideal leverage would be back to the table and see, Henrique, that would be a day

[17:41] see this, Henrique, I'm going to do a scalping operation. Dude, we already use scalping 50 times with a 1% stop loss on a minute chart. Those are high-risk operations, huh? use five times the leverage, because five times the leverage

[17:56] will give you a much larger stop-loss margin of 5%, 7%, 8%, it really depends on the doubt about that left . If you have any questions, leave a comment below. The links to the brokers I use will be

[18:09] you have to do is share this video with your friends, comment, engage so relevant, and sign up with the brokers through my link, because that helps this channel continue to exist. So, I hope I've helped you.