have you ever fantasized about becoming a Trader and turning a small amount like fifty dollars into five thousand dollars well in this video I'm going to give you a game plan for how that could become a reality we're going to go over many important topics such as stop losses bankroll management which is very important I'm gonna go through a live trade with you guys to show you exactly how it works I'm going to walk you through this bankroll management and trading document so that you can track your trades and I'm going to show you another bunch of tips and tricks which you can use on binance so that you can minimize your losses and maximize your profits [Music] foreign [Music] my name is Frank and this is old Quinn Buzz as a friendly reminder please be informed that this is a volatile space and there is a corresponding risk in cryptocurrency this video is informative in nature so please do not take it to be official Financial or investment advice if you are looking to get started on binance there is no time like now because we have this exclusive offer with our friends at binance and if you sign up using our link down in the comment section below you will be able to take advantage of a 20 trading fee discount for life so click the link down in the comment section below to find out more information and to get started on binance now okay so let's get started before I go over these topics I'm going to assume that you've signed up on binance using our Link in the description below and that you have watched some of these beginner tutorial videos on how to create an account how to deposit money onto the account but if you haven't then check out binance. com forward slash en forward slash e forward slash Futures underscore video because here you will see videos which explain some of the basics of getting your account set up now every time you trade you will incur fees all right and this is why this first point is important because you actually have lower fees with busd compared to usdt let me show you what I'm talking about so here we are on the binance Futures platform and if you go to the fee level down here you can see that the taker fee is 0. 04 and the maker fee is 0.
02 but you have lower fees with busd as you can see it goes down to 0. 3 percent for The Taker and 0. 012 for the maker so that's why for today's video we're going to be trading on eth busd and to make this interesting we're going to enter a live trade and I'm going to briefly walk you through the analysis of this trade so first of all we are here on ethusdt on tradingview.
com and if we zoom out to the weekly chart which you should always do if you're entering pretty much any trade you want to look at the weekly chart to see if the trend is in your favor and here you can see that we are in a downtrend so this is obviously something to note but we have a bullish crossover of the macd so there's some chance that this downtrend has finished that's one of the first reasons why we're entering this long trade today going down to the Daily time frame here we are seeing a diagonal support line and we're seeing that we are currently right at this diagonal support line offering some potential support and then finally on the four hour chart we are seeing that there is somewhat of a support level at the current level you can see in the past we had a candle Spike through this level and then we had a candle come almost to this level and now we've had a couple candles which have closed or opened at this level which is the 1510 level so there's some reason to believe that we might find support here and then of course on the one hour chart we are seeing the RSI being oversold so the last time the RSI was oversold shortly after we saw a bottom for Bitcoin so again there's some reason to believe that we are about to see a reversal here okay so now we have our reasons for entering the trade now what I suggest you do is that you create a little document like this and then you enter your reasons for entering the trade here I'll just enter one or two of them so one hour oversold RSI one day diagonal support line and for our horizontal support line okay and one reason why you want to write your reasons for entering the trade is that you don't want to let your emotions dictate your trade you want to have several good reasons for entering the trade and this is called Confluence when you have many reasons for entering a trade okay so that's the first thing then of course we're going to mark this as trade number one and now we are going to look at the risk to reward so for this you want to click a long position here if you go on trading view here and you click the prediction and measurement tools here you have a long position click that and then you will be able to enter a potential long position here or at least analyze what it would look like and this is what my trade setup looks like I am first of all I'm entering my stop loss below the previous low here so the previous low is 1474 and I want to not be stopped out unless we reach somewhere below that let's say 1457. 98 all right so that we have a margin of error here and then of course what we want to do is always have at least a two to one risk to reward so I should only enter this trade if I think it's realistic that the price could reach 1613 dollars well why because most of the times we enter a trade we don't want to have a one-to-one we really want to have a bigger risk to reward we want to have a bigger potential reward for our risk and most Traders will use two to one as a benchmark as a minimum risk to reward okay so next thing you want to do is transfer money from your spot accounts to your futures account I've already done that so I have 50 busd here and now we're going to touch on another very important trading principle which is to never use more than one to two percent of your bankroll okay and now for this video I'm going to assume that you don't just have fifty dollars to your name and this is not your last fifty dollars that would of course not be very wise I think that the most reasonable thing to do is let's say you have a 500 bankroll you put 10 of that bankroll which is for trading okay you're willing to lose that whole 500 you put 10 of that on to this account here you have fifty dollars and the next thing you want to do is look at the potential loss on this trade so if we were to enter this trade now at the current price level and again we want to stop out below this previous low let's say 1459 here okay here we have a 3. 6 potential loss and let's just assume that we don't want to risk more than one percent of our 500 bankroll applied by 0.
01 is obviously going to equal to five dollars so we don't want to risk more than five dollars of this trade so for that reason we don't want to bet much more than about a hundred and thirty dollars on this trade because we're going to lose 3. 68 if we lose right so what we let's keep it simple and just bet a hundred dollars on this trade and if we want to bet a hundred dollars then of course we are going to risk up to three point six eight dollars now of course it's a little bit more with the funding rates which you have to take into account because you will be paying fees on the money that you borrow because when you're doing Futures you basically are borrowing money so that you can enter a larger trade all right so you're paying the funding rate which of course is always marked up here this funding countdown this is for every eight hour period so we've decided that we want to enter a 100 trade because we don't want to lose more than about five dollars for this trade so how do we enter a hundred dollar trade with this fifty dollars on the account well the first thing to take note of are these two top options here now what I recommend is that you use isolated margin this will mean that you only risk what is on this actual trade you don't risk your whole account so in other words if you enter a 50 trade you will only risk that fifty dollars you won't risk all of the money which is on your account so we start with an isolated trade confirm now you will note that you can go up to 50x but actually finance will not let you do that until you have had the account active for more than 60 days which is quite smart because really there's very very little reason to ever use 50x and for the purposes of this video certainly we don't need to use nearly that much so let's just stick with 10x for now confirm and here we're going to buy 100 of ethereum okay in fact we can make this exact by clicking 100 over here so now the next thing I want to show you is the tpsl the take profit stop loss and we're actually going to click the advanced version here because I think this is a very important and very simple way to understand the loss what you're risking and what you're potentially getting in profit so for loss remember we had 3. 68 percent which gives us a trigger price of 1455.
91 so this means that if the price gets to this trigger price then the trade will be stopped out immediately so you don't have to worry about getting liquidated because of course if you get liquidated if you don't have a stop loss in place then you will have to pay a liquidation clearance fee which means you pay even more money so you really don't want to get liquidated you want to have a stop loss in place now when it comes to the gains we are looking for at least a two to one with this particular trade we are looking at a 6. 86 percent reward potentially so let's type in here 6. 86 percent and then you will see the trigger price is where this is where you take profit now what will happen when I click confirm here is that well we haven't entered the trade yet but when we do click here by long then it will actually enter a trade with two additional orders so let me show you what I'm talking about first of all what I'm going to do is I'm going to enter a market trade so that means that we're going to enter ethereum at the current price level we're going to pay a little bit more in fees for that just for the Simplicity just to make this video quick all right so now you can see we have this trade it's a little bit less than 100 dollars but we also have two open orders so if you go to open orders here and click view here you can see if order a executes order b and c will be placed so order a is the order that we already entered where we bought 100 worth of ethereum and since they're executed then if order B executes in other words if we reach our profit Target then we will take profit but also it will cancel order C and Order c as you will remember is the stop loss so in other words if we get to our profit price then we will take profit and it will cancel this order to stop sell at the lower price and the same vice versa so you don't have to worry about the trade this is actually a very great hands-off approach to trading where you enter a trade and then you just wait for either to be in profit or to be in loss so again in this trade we've used a stop loss and it's very very important to have your stop loss in place so that you avoid liquidation fees and of course if you don't have a stop loss in place you can potentially lose a lot of money especially with Futures Trading where you have leveraged positions so very very important to enter a stop loss we talked about the maker fees versus taker fees in principle you want to try and be the maker whenever you can in other words if you want to enter at the current price you have to put your price just a little bit below that and wait for that price to activate but just remember there's always the risk that you won't get the exact price you want So if you think the current price is very very good and it's not likely to move much lower then you know it might make sense to make a market order but if you are entering a swing position and you have several days or weeks in that trade then you're more likely willing to wait for a slightly better price to avoid the fees of the taker now we talked about bankroll management you really don't want to risk more than one to two percent of your bankroll on any trade so again if you have a 500 bankroll you don't want to risk more than five dollars on every trade that doesn't mean that you enter a five dollar trade as you see we currently enter the 100 trade but we're only risking up to five dollars because we have a strict stop loss in place here all right now one more thing you might notice with this trade is that we have a size of 99.
5 dollars almost but our margin is just nine point nine eight dollars so what this means is that we are actually only risking a total of ten dollars to enter this trade now of course with our stop loss we know we're only risking five dollars but if we didn't have a stop loss we would still only be risking up to ten dollars so as you notice on our account we have a balance of 49. 97 but this margin balance for this position is only 9. 9 so this means that we have another 40 odd dollars to play around with on this account and this is another advantage of Futures Trading is that you can enter multiple positions with a small amount of money and here you have the entry price which is the 1508.
43 currently the mark price is a little bit lower than that 1506 and that's why we currently have a small loss but of course this is a trade which is more medium to long term so we are going to potentially wait several days before we wait for this trades to activate in terms of either hitting the stop loss or the take profit so back to our document here in this first trade we are risking here you can make a rough estimate there's no need to make a very exact calculation but let's just say we're risking four dollars assuming that we have funding fees and assuming that this trade will be live for let's say a couple of days or so but the point is that you won't have to worry about the exact calculation because you know that your starting bankroll is 500 so when the trade is executed let's say that for example after the trade is executed on your account you have instead of instead of 50 on this account we have sixty dollars well in that case you know that the starting bankroll is now 510 and therefore your profit and loss is very simply equal to your bankroll your current bankroll minus the bank roll that you started with and there you'll see that your profit and loss for this particular trade is 10 and then here you can write down if you learned any lessons so for example you may have not had enough reasons to enter the trade or maybe your reasons for entering the trade were not strong enough or maybe you just didn't have any lessons and you just got unlucky on that trade but the point is it's very important to track your trades and to keep on learning and studying so that you can maximize your chances of turning 50 into 5 thousand dollars and becoming a professional Trader so in conclusion if you want to turn fifty dollars into five thousand dollars if you want to trade professionally start by of course just watching the binance trading tutorials they have plenty of excellent tutorials here on the website which I mentioned always have a trading plan with a stop loss and targets all right we talked about creating a trading plan having a stop loss having a take profit all right deciding why you're entering that trade in the first place and then never risk more than one to two percent of your bankroll per trade I can't stress this enough the main reason why you will likely fail While most Traders fail is because they don't have proper bankroll management they get overconfident or they let their emotions get the best of them and then they risk more than they're comfortable in a trade and then that makes them trade worse in the future and that makes it more likely that they will wipe out their whole bankroll all right so one to two percent you can go up to the two percent if you feel more confident with a trade but usually try to stick to one percent now another great tip here is to start with mock trading all right because you should expect to lose before you start winning so in order to mock trade go over to your username over here and then click mock Trading and then you simply continue and then here they provide you with three thousand dollars and you can just enter any trade that you want and in this way you don't risk losing any actual money and you can enter a whole bunch of Trades and you can learn a lot before actually risking any actual money and this of course is the most conservative but also the smartest way to start trading this is how I personally started learning how to trade just by mock trading and then two more tips one is to join trading communities to improve your skills right on tradingview.
