5 Common Futures Trading Mistakes (And How to Avoid Them)

Futures trading can be rewarding, but it also carries higher risk than spot trading. If you’re just starting out on Bitazza Futures, avoiding these common mistakes can help you protect your capital and build a smarter trading strategy.

1. Overleveraging

Leverage allows you to amplify your position size, but high leverage also increases your risk of liquidation. For example, with 10x leverage, a 10% move against your trade can wipe out your position.

Avoid it: Start with lower leverage (2x–5x), especially if you’re still learning. Adjust leverage based on market conditions and your risk appetite.

2. No Stop-Loss

Without a stop-loss, you risk riding a losing trade all the way to liquidation, especially in volatile markets.

Avoid it: Use Bitazza’s Stop-Market or Stop-Limit orders to set clear exit points. Always define your risk before you enter the trade.

3. Ignoring Trading Costs

Trading fees, funding rates, and liquidation penalties can all reduce your profits if you don’t plan for them.

Avoid it:

• Review applicable fees before opening a position
  
  
• Consider funding rates, especially for longer-held positions
  
  
• Avoid trades too close to your liquidation price
  
  

4. Poor Entry Timing

Jumping into trades based on emotion or hype, without confirming trend direction or price structure, is a fast way to lose money.

Avoid it:

Use Bitazza’s TradingView charts to assess momentum, support/resistance, and volume before entering a trade. Be patient and wait for confirmation.

5. Risking Too Much Capital

Placing your full balance into one trade, especially in Cross Margin mode, exposes you to unnecessary loss.

Avoid it:

Trade using Isolated Margin, which limits your risk to only the capital assigned to that trade. Keep position size within 1%–5% of your total capital.

Smart Futures trading is about control, not luck. Use Bitazza’s tools like adjustable leverage, risk orders, and real-time dashboards to stay ahead. Learn more on How to Trade Futures Safely.