KuCoin Futures Trading Tutorial
Margin Trading VS Futures Trading
A complete Kucoin Futures Trading Tutorial by James of MoneyZG. How Margin Trading differs from Futures Trading.
KuCoin Futures Trading Tutorial (Futures Strategy & Trading Explained)
8,669 viewsMar 19, 2022
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KuCoin futures trading tutorial and KuCoin trading strategy Trade on KuCoin: MoneyZG Crypto Course: https://moneyzg.academy Best Crypto Tools & Deals: https://moneyzg.co/tools FOLLOW ME: Twitter: https://bit.ly/Twitter-ZG MZG CLUB Discord: https://discord.gg/f7UNeqCZHn Instagram: https://bit.ly/Instagram-ZG TikTok: https://www.tiktok.com/@moneyzg TIMESTAMPS: 0:00 KuCoin futures trading tutorial 0:47 Margin vs futures 1:42 Futures account deposit 2:32 Futures lite 4:31 USDT-M vs Coin-M 6:21 Futures funding rate 9:33 Mark vs index 11:12 Trade and order entry 14:06 BTC vs lot 14:39 Using leverage 15:09 TP/SL 17:26 Other order types 18:52 Live orders 19:31 Reduce order 20:41 KuCoin futures trading strategy 23:08 Risk 2% USEFUL VIDEOS: Celsius Network: https://youtu.be/IhTJl-a9g-Y Bybit: https://youtu.be/L7_LjF1YsKw This video is for entertainment purposes only. It is not financial advice and is not an endorsement of any provider, product or service. All trading involves risk. Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites
KuCoin Futures Trading Tutorial
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FULL VIDEO TRANSCRIPT
0:00this video is a complete kucoin futures0:02trading guide so i’m going to show you0:03how to get set up on the platform as you0:05can see here they do also have a0:07smartphone app as well um so you can use0:10this it has exactly the same layout and0:12everything it’s just obviously a lot0:13smaller on your phone i’m going to show0:15you how to do it on the platform for now0:17show you how to get set up with futures0:18get some money into your account then0:21how to work out different rates for0:23funding risk mitigation how to go ahead0:25and trade and then a small tutorial at0:27the end for0:28a trading strategy as well just a very0:31simple one so first we have to get set0:33up on kucoin if you don’t have a kucoin0:36account yet i’ll leave that link in the0:37description you can sign up right now0:39and then follow along if you need a0:40step-by-step guide for beginners i’ll0:42leave that in the description as well0:44plus the time stamps so lots of0:45information down there if you need it0:47firstly we need to understand the0:48difference between margin trading and0:50future trading on kucoin because they’re0:52not the same0:53if you come up to trade and then click0:55on margin trading it will take you0:56through to basically a trading screen0:59which is the normal trading screen down1:01in the bottom you can actually see1:03uh there’s cross margin here and1:04isolated margin now1:07margin trading is not futures trading on1:09kukan it’s different and they’re1:10actually different accounts so futures1:12is a completely different product margin1:14trading is when essentially you put1:16let’s say a thousand bucks on account1:18and uh kucoin may give you two or three1:21thousand to actually trade with you can1:23open positions that are worth a little1:24bit more than the cash you actually have1:27that is margin you know trading on1:28margin it’s not futures right here1:30you’re basically just loaning money from1:32kucoin um with the ability to trade more1:36than you actually have in your account1:38futures are a completely different1:39product and i’ll explain why throughout1:41this video firstly though we need to get1:42some money into our futures trading1:44account because kucoin separates all of1:46the accounts um so once you have an1:49account set up you need to come over to1:51the overview right here i’ll just click1:53on this and you can see all the1:54different types of accounts that you can1:56actually load up so you have a main1:57account1:59you can see the margin account as well2:00if you want to put some money onto your2:02margin account or your futures account2:04right here so all you have to do2:06obviously is put some money on your2:07account there i go through that in the2:09beginner’s guide if you need to know how2:10to do that that video is linked in the2:12description i’ll come over to transfer2:14though and you can see you can just2:16transfer it from your main account into2:18your futures account us dollars i have2:20some on my main account so you can just2:22transfer in some press confirm that’s an2:24internal transfer so there’s no fees for2:26that and that’ll just go into your2:27future as a trading account the reason2:29they’re split up is for risk mitigation2:31basically kucoin have a light trading2:33platform for futures if you just want to2:35get something done quick and i’ll show2:37you how to use that now before i show2:38you the pro platform if you come to2:40derivatives you can see futures light2:42right here i’m just going to click on2:43this this trades futures but it’s not a2:46professional setup essentially you2:48basically can go long or short uh very2:50quickly if you need to get something2:52done and you just kind of want to kind2:54of place bets on where the next candle2:56will be or you want to kind of scalp you2:57can actually just get orders done very2:59quickly with this3:01so up on the top right hand corner you3:03have your assets i transferred 100 bucks3:05into this for the video and then down3:08here you just can very simply place an3:09order so let’s say i want to put 100 on3:12i can click 100. but then you can add3:14another 10 to this you can do that and3:16then obviously add 500 and i you know it3:18goes on forever um so what you can see3:20here is 5x leverage that i’ve got3:22obviously you can turn this up um you3:24know i wouldn’t recommend using too much3:26leverage if you’re a beginner definitely3:27don’t use too much leverage um you know3:29just maybe try on kind of one 1×3:32you know before you you get a bit more3:33comfortable with it but this ver this3:35very simply this light platform just3:37lets you bet long or short on the price3:40over the short term it’s not for3:42professionals really but if you just3:44want to take a quick bet so let’s say3:46you know i went with 40 right here and i3:49would go 5x leverage as you can see so3:51i’m going to do 5x click long and then3:54you just really quickly put an order in3:55here so you can see the leverage is 5×3:57the execution price basically just a3:59market order so you’re going to very4:01quickly go through and go long and the4:03principal is 40 right there so i’m just4:05going to click off but if you went4:07through with that essentially you’d go4:09down to my earnings right here4:11and then your profit and loss or your p4:12l would be in here for you so you can4:14see if you’re in profit and loss this is4:16really a kind of beginner’s platform4:18just to quickly go long or short if you4:20want to you know kind of trade short4:22term and scalp obviously if you’ve got a4:24wider portfolio and you’re looking to4:25hedge your portfolio or do some more4:27professional stuff then we need to get4:29into the professional platform coming to4:31the professional trading platform then4:33i’m gonna first go through some really4:35important things you need to know about4:36trading futures and that is how you fund4:38your positions so we’re gonna go over to4:40derivatives and then futures classic4:42that’s basically what they call the4:44professional4:45trading system right here so i’ll go4:47through all of this in a second i want4:49to come up to um some important things4:51though so we can look at the contract4:53specification so when you trade futures4:56you’re actually not buying and holding4:58any cryptocurrency really you’re just5:00kind of um you’re trading synthetic5:02contracts for the difference in price5:04between when you go long and then when5:06you close your position or when you go5:08short and close your position but you5:10can fund those contracts in different5:12ways there’s actually two ways you can5:14either fund them with usdtm which is us5:17dollar tether margin or coin margin5:21usd t margin does essentially you know5:23us dollar margin and then coin margin is5:25when you can use bitcoin ethereum i5:27think polka dot on xrp for right now so5:29if you click on assets here just look at5:31the assets you can fund um go over to5:34coin margin right here and you can see5:35bitcoin eth dot and xrp these are four5:38assets that are supported at the moment5:40anyway that you can use to fund your5:42positions um so you know the amount of5:44funding that you have an account5:46obviously lets you trade and leverage5:48off of that you know how much you have5:50on account is going to be how much you5:52can leverage so it’s really important to5:53understand most people will trade us5:55dollar margin because the us dollar5:57doesn’t fluctuate in price like a risk6:00asset does so you know if you if you’re6:02using bitcoin to margin you’re long um6:04and bitcoin is falling in price then6:06it’s like double trouble because you’ve6:07got bitcoin going down the price that6:10you’re long in and also your collateral6:12is going down in value as well so6:13potentially way more risky most people6:15use us dollar margin6:17but that’s the two ways you can6:18basically margin up your futures bets6:21now i need to go through what the6:22funding rate is if you’re trading6:24futures you have to either pay or get6:26paid a funding rate this is very6:28different to the spot market you don’t6:30have a funding rate in the spot market6:32so this is the futures trading screen6:33right here you can see on the left i’ve6:35got the bitcoin perpetual that means the6:37future has no expiry so you know it just6:40goes on forever um and you can see6:43either usd t margin or coin margin right6:45here6:46we’ll stick on the us dollar tether6:47margin futures and you can see all the6:49different type of coins that they uh6:52support so you can trade all of these6:53coins in the futures market so what we6:56really need to understand is the funding6:59rate and you can see that here so this7:01is the predicted funding rate which is7:03plus7:040.017:06so in the futures world um all of the7:09contracts that you trade are you know7:10done on margin with a borrowing and so7:14when you’re long7:15you usually have to pay to go long7:18against a short so for every long in the7:20futures market there is of course a7:22short right if you go along someone help7:24set someone else has to go short and if7:26they go short obviously someone’s7:29long to you know kind of mix up right so7:31the funding rate is something that gets7:34paid7:35usually every eight hours or so on7:36kucoin it’s every eight hours7:38what you have to know really is that if7:40the funding rate is positive as it is as7:43it is here you can see this plus this7:45means that long positions all long7:48positions pay short positions at the7:50next funding you can see the next7:52funding settlement on the right-hand7:53side is actually in about 30 minutes7:55time it happens every eight hours on7:57kucoin so there’s three funding7:59settlements per day it’s a plus 0.01 so8:03what that means is that8:04in 30 minutes longs so if you had a long8:07position in the futures market you would8:08be paying8:090.018:11as a funding rate to shorts now if this8:14funding rate is negative it means that8:16shorts short sellers will be paying8:19longs8:20at this funding at this funding8:22settlement8:23it’s usually positive longs usually pay8:26shorts but not all of the time it’s8:28something to consider because um you8:30know we’ll we’ll just do the calculation8:32right here8:34so obviously the funding rate is um8:38one 0.01 so that’s that’s it as a8:40decimal now this happens three times a8:42day so we um take this8:44three times and then we times that by8:46365 and that is an annual rate of8:50interest that you’ll be paying so around8:52about 118:53so8:54if you’re going long in the futures8:56market and the funding is always8:58positive so you’re paying you’re9:00basically paying 11 in interest to short9:03sellers um to you know to place these9:06bets so just take that into account when9:08you’re doing your profit and loss9:09especially if you have positions open9:11for a very long time or if you’re9:13borrowing a ton of money then fundings9:16you know the funding rate does eat into9:18your profits if you’re going wrong and9:19paying this funding all the time so just9:21um you know put that into your9:23calculations that you’re basically9:25paying 11 as an apy more or less if9:28you’re going long9:29and if you’re borrowing money that can9:30definitely eat into your your collateral9:32that you have on account the next thing9:34that’s very different in the futures9:35market is the uh different prices you9:38get you get a mark price and an index9:39price this doesn’t happen in the spot9:41market um so as you can see up on the9:43right hand side here you have the price9:46the actual price that people are trading9:47out on kucoin so this is bitcoin at9:49forty thousand three forty you have a9:51mark price and an index price the index9:54price as you can see here is a composite9:56index of the spot market9:58what um what every futures trading10:00exchange will do was will take10:02um the price of bitcoin on various10:05different exchanges like you know the10:06top exchanges like binance and ftx and10:08they will come up with an index price of10:10what the average price of bitcoin is10:12between exchanges10:14the mark price though10:15is the price that is very important for10:19the contracts on kucoin so when you’re10:22trading futures you’re not trading the10:23spot market you’re trading a contract on10:25kucoin and that is slightly different to10:28the index price you can see they10:29definitely are not the same right10:30they’re very very slightly different now10:33the mark price is what kucoin used10:35um to execute all of the contracts on10:37the system this only really matters if10:40you have a long position that’s going to10:42get liquidated or a short position if a10:44position is going to get liquidated then10:47kucoin will use the mark price as the10:50official settlement price for what’s10:52going on so if there’s a dump in the10:53market and you get liquidated they will10:56take this mark price as the official10:58price that all contracts are executed at11:00and so this is really important you can11:02see here that it’s very very similar but11:04it is different so just to know that the11:06mark price is something you need to look11:07at that’s where all of the liquidations11:09and all the important kind of contract11:11settlements will occur at this point i’m11:13going to take you through putting an11:14order in11:15on the future screen again this is11:17different to the spot market so at this11:19point if you definitely need some you11:22know some more help with the basics of11:24technical analysis11:26reading charts using charts as well in a11:28more professional way if you don’t know11:30what the order book is and everything11:31like that um then what i’m going to do11:33is link the kucoin beginner’s guide in11:35the description you can go and watch11:36that also i have a crypto investment11:38course with i think about 50 videos on11:40day trading technical analysis how to11:43trade how to think about trading um11:45definitely if you want to you know kind11:47of move up a level and get a little bit11:48more professional or at least kind of11:50know what you’re doing then the crypto11:51course goes through all of that and then11:53there are private discord groups that11:54i’m in you can ask me questions as well11:56so i’ll leave the trading course in the11:58description as well if you want to12:00go through that and you know learn a bit12:02more for now i’m just going to very12:03simply go through placing an order and12:06then a very simple trading strategy12:09that i think is you know very simple for12:10beginners to kind of uh get into that is12:13a support and resistance strategy now12:15you can see here i’ve actually drawn a12:17couple of yellow lines right here this12:18is support at the bottom and resistance12:20at the top just kind of two levels that12:22i’ve seen12:23based on what the chart is telling me on12:25the left hand side you can click this12:26button right here this is a trend line12:29and then just click to draw this on now12:31obviously i’ve got these lines on here12:32already where would i draw these well12:34you can definitely see12:36it kind of stands out right there’s an12:37area where the price kind of hits12:40support and bounces off a few times so12:42that’s a support level and right here i12:44can definitely see a like a resistance12:46level where the the price is kind of um12:48getting around and being a bit sticky at12:50so that’s why i put these two lines on12:52and then i’m going to use those as a12:53very simple strategy what i’m going to12:55get on to now though is putting an order12:57in and all the different ways you can do12:59that with futures trading so on the13:01right hand side um this is where we put13:04in our orders on kucoin so i’m just13:06going to zoom in here so you can see so13:08the first thing is we can just press13:09this button right here and that gives us13:11the last traded price and you can see13:13this is the bitcoin price right here 40313:16uh yeah 40 309 if you keep clicking last13:19um then obviously it’s gonna you know go13:21to go to that amount um and the amount13:24of uh you know bitcoin that you want to13:26trade obviously obviously if this is a13:28theorem or something it will be13:29different13:30but you can see i’ve got a hundred13:31dollars on account down here um just as13:34you know for the video then what i can13:35do is basically just say i want to you13:37know i want to press 25 percent of that13:39now what you can see i pressed 2513:41percent of a hundreds obviously 2513:43dollars but it’s come up here with 12013:45dollars why is that well i’m actually13:47using leverage so you can see i’ve got13:495x leverage on here if you’re a beginner13:51please don’t trade with leverage just go13:53down to 1x or something13:55just to try it out obviously the more13:57advanced you get you might want to use13:59leverage14:00you know leverage is very dangerous if14:02you use a lot of it so i wouldn’t14:03recommend using too much but you know14:05we’re all can do what we want but the14:07amount that you trade you can you can14:09put this in btc14:11or you can go to the trading unit right14:13here i’m just going to click this and14:15you can change it to lots so a lot as14:18you can see here is .001 btc so instead14:21of having to type in 0.001 you can just14:23type in 114:25and then it obviously gets rid of the14:26decimals so14:27whatever way you want to do it i’m just14:28going to keep it on btc right now14:31so we can either do 25 or 50 you know 7514:35of what you’ve got an account or you can14:36just go in here and manually set that in14:38in terms of leverage like i said14:41beginners please don’t use too much14:42leverage you know you can get wiped out14:44basically right so14:46um you know if you have a 10 or 20 you14:48know let’s say a 10 move in bitcoin but14:50your 10 10x leverage obviously that’s14:52you know pretty crazy in terms of how14:54much14:55um you know your initial capital can get14:58wiped out so i would not recommend15:00anything more than kind of five15:02six x leverage 10x leverage like at15:05absolute max um but everyone is15:07obviously you know um on their own15:09choices with that one15:11now what we need to do15:13is uh put in take profits and stop15:15losses15:16a tpsl as you can see right here now if15:18you can’t see this15:20on your trading screen15:22it doesn’t come up automatically so what15:24you have to do is come up to the top15:26left and click these settings right here15:28and then go to i think it’s features and15:30you can see some of these will be turned15:31off i have them all turned on um so you15:35should be able to see all of them are15:36kind of green so15:38some of the pro features you need to15:39turn on and i would recommend that so15:41that you can come down here and put a15:43take profit and stop loss in15:45what what are they15:46um well a take profit is obviously15:50a price where you want to sell and you15:53know get out at a profit now that’s15:54different if you’re going long or short15:56obviously going long it means you want15:57to buy at a price say forty thousand and16:01then sell above that so let’s say the16:03price is forty thousand three sixty i16:05wanna take profit at 42 000.16:08and you can see it works out my profit16:11rate at 2116:13so if i get in at 40 000 361 and get out16:16at 42 my profit rate’s 21 21 but you can16:19also you know click these buttons and it16:21will auto fill that take profit level16:23for you16:24um what you can also do is obviously16:27look and actually find a level i would16:29say if you went long here you’d kind of16:31take profits at16:33potentially 43 something like that so 4316:36000 right so that would be a 33 percent16:38now a stop loss is the complete opposite16:40if you’re going long16:42it’s a level underneath your trade16:45where you kind of sell out your position16:47and you take a loss16:49this is to stop any further losses so16:51when you’re trading on leverage as you16:53can see here16:55you know it it can very quickly kind of16:57wipe out your account right if you’re on16:595x leverage17:01and17:02you drop 20 basically you know17:05everything’s out right like you your17:07initial um17:09your initial balance is gone17:11so obviously people put in a stop loss17:13when they trade on leverage to try and17:14mitigate some of the downside risk and17:16kind of cut their losses very early17:17before it gets really out of hand you17:19don’t have to use a stop loss but a lot17:20of people do you can see you can just17:22put five percent in here 1517:24or find a level on the chart and then17:26put it in manually17:28also you can have this drop down box17:29right here17:31hidden means that when you put your17:33order in it won’t be shown on the screen17:35so other people can’t see it doesn’t17:37really matter17:38you know i wouldn’t recommend using it17:40that it really doesn’t matter unless17:41you’re trading very very large amounts17:43post only and ioc ioc is immediate or17:46cancel it means that when you put an17:48order in and you have your your limit17:50price right here17:52it either trades immediately or just17:54gets completely cancelled17:56post only17:57is something that you can use when you18:00want to get maker or tr or taker trading18:03fees18:04so on most trading platforms and kucoin18:06is the same if you are a maker of18:08liquidity you actually get charged a18:11little smaller amount for your trading18:13fees rather than if you’re a taker of18:14liquidity18:16so the way that you would be a maker of18:18liquidity is if you let’s say you’re a18:20buyer you actually put your order on the18:22book a little bit below so that it18:24doesn’t trade straight away and then you18:26hope that someone else comes and hits18:28your order a little bit after the fact18:30you are there for a maker and he is18:32therefore he takes your order and18:34therefore is a taker makers place18:36slightly lower trading fees post only18:38basically prevents you from paying those18:40taker fees where if the order can be18:43done straight away it will actually just18:45cancel the order so18:47it just makes sure that you never take18:48anyone else’s orders and you don’t18:50become a taker again not massively18:52important in my opinion so basically18:54that is it for putting in orders you18:56just get all of your levels set18:58um and if you want to put take profit19:00and stop losses in you can do that but19:02you don’t need to then you just go by19:04long um or sell short whatever you want19:07to do and your order will come down here19:09to the left-hand side and it will show19:11you your running p l it will show you19:14you know your your profit and loss or19:15anything like that um take profit and19:17stop loss levels and everything you can19:19see all of your trade details right here19:21and if you want to cancel it that will19:22just be on the right hand side you can19:24just cancel with the order and it will19:25basically trade out for you now there’s19:27a few different ways you can also trade19:28out of your order19:30so the first one is19:32um when you trade basically you’ve got19:34an open futures position and you don’t19:36actually you don’t actually own any you19:39know crypto so let’s say you go long and19:41you you buy to go long a thousand19:43dollars worth19:45um what you can do is actually reduce19:47your order a little bit and not sell out19:49the whole thing what you can do is19:50essentially sell short19:52um and reduce the amount that your order19:56is right so if you sell short 500 what19:58you do is basically just net off um part20:01of your your order right so you had a20:03thousand long now you go short 500 so20:06you’re a net long 500 but what you can20:09do is actually press this reduce only20:11you can see reduce only order will only20:12reduce your position does not require20:14margin to be frozen if the order would20:17increase your position it’s amended down20:19or cancelled right so what you can do is20:21when going long if you say i really20:23don’t want to20:24you know add to my risk position you can20:26just press this and then that order will20:28only be able to be reduced and not added20:30to20:31or you can just sell short and kind of20:33you know remove some of that order so20:35your net position is whatever you want20:36it to be um so that is putting an order20:39in on kucoin with all of the different20:41options now i’m going to quickly show20:42you a way to think about risk mitigation20:45when you’re putting orders in and trying20:46to get some levels just very simply with20:48this training strategy right here um20:50obviously there’s a lot i can’t go20:52through in this video so if you want to20:53know more about20:54thinking about how to read the market20:56and everything i would recommend the20:57course or at least join the public20:59discord groups21:00there’s a trading group in there i’ll21:02leave that as a pin comment21:04but what we want to do is find out how21:05much risk we are taking um and if that’s21:08okay for this trade so the first thing21:10we can do is come up to the top right21:12and basically put in some you know put21:14in some details and see how much21:16potential return we’ve got21:18so what you can see with this trading21:19strategy it’s just a really simple21:21support and resistance strategy so down21:23here i’ve drawn this line this line21:25because you can see the price actually21:27hits this line a few times as you can21:28see and bounces off this would be known21:30as support and then this resistance line21:32here i’ve drawn because21:34support previous support turns into21:36resistance you can see a couple of times21:38where the price kind of21:40trades around here for a little while21:42kind of met resistance here as well met21:44resistance here so we’re now up at the21:46resistance line um so we can actually21:48figure out kind of how much we would21:49make if we would go long here expecting21:52to break through this resistance and21:53possibly return up to this level at21:55let’s say 43. so you can use the21:57calculator21:59um so i’ve got the22:01you know the profits calculator here so22:02let’s say i’m buying long and i’m using22:03five times leverage my entry price let’s22:06call it 40 00022:08and the close price let’s say 42 00022:11and i want to trade point one bitcoin22:14start calculation you can see my cost is22:16eight hundred dollars my profits two22:18hundred dollars my return is 2522:20so that would be you know a decent ratio22:23for me i would say for 5x leverage now22:25if i turned it down to like 2x leverage22:27you can see22:28uh the profit you know goes goes to 1022:30roe essentially because you’re not22:33leveraging as much you’re not borrowing22:34as much your position is smaller and so22:36that percentage22:38as a percentage profit on your initial22:40obviously goes down a little bit but you22:42can see the closed price or the22:43liquidation price you can go through and22:46play with these22:47liquidation price for example if you go22:50with 5x leverage your entry price is 4022:53and then actually the trade moves22:54against you so it starts going down22:56let’s say you trade 0.1 btc your22:58liquidation price would be 32 200. at23:01that point if the price got down there23:03basically kucoin would liquidate your23:04position and you’d be out so good to23:07know this before you actually get into23:08some trades now i want to show you a23:10very quick calculation of how much to23:12risk per trade a lot of pro traders will23:14suggest not ever risking more than two23:16percent of your portfolio per trade and23:19you can use this as a position size23:22calculator to tell you how much to trade23:24so what i want to do here and let’s say23:26i have a long bias here so i’ve i’ve23:28traded my um support and resistance23:31strategy23:32and you can see that we’ve come off this23:34resistance you know but i’ve got a long23:36bias and i think we’re actually going to23:37break through this resistance level and23:38go up to these um these levels up here23:41so i’d be looking at entering a pr23:43entering along right here around 40 30023:47and my23:48my stop loss to to mitigate the downside23:51i would put it in around about this23:52level here the reason i say that is23:54because if you go back you can see this23:56price level has been a resistance level23:58for you know a good few weeks right down24:01here this level here as well as24:03resistance and then over here is24:04resistance as well and then over here is24:06resistance as well so i would um i would24:09suggest that if we are entering a new24:11bullish phase this would be the area24:13where it would bounce24:15and so i want to give my stop-loss a24:16little bit of room but if it goes down24:18through this stop loss then essentially24:20i’m wrong and it’s going to potentially24:22you know go down to this secondary24:24support line so i would put a stop loss24:27in around24:28call it 39 200 with an entry at 43.99 so24:32we’re going to put this in here you can24:34get this um calculator on you know just24:36google it crypto position size24:38calculator i’ll try and leave the link24:39in the description but let’s say the24:41open price to make things easy24:43let’s just say 40 000 and the stock24:45price24:47uh let’s say 39 and a half thousand24:52something like that and then the account24:53balance24:54you’ve got 10 000 on account and you24:56only want to risk 2 per position24:58so let me make this bigger for you uh so25:01open price 40 stock price 39 500 10 00025:04balance and you wonder is two percent of25:06that if you calculate this you can see25:08that you can go in uh a position size of25:120.4 bitcoin25:14so this tells you how big your position25:16can be while whilst only risking two25:19percent now if your stop-loss price was25:21lower let’s call it25:2338 000 calculate you can see the25:26position size goes down because the25:28potential loss is obviously a lot lower25:30right um so25:31to keep it at a two percent risk of the25:33portfolio at losing you obviously have25:35to uh make your position smaller so25:38hopefully that makes sense now i know25:40let’s say uh i want to do this at25:4239 000 calculate uh i know that i can go25:45ahead and trade right here trade at this25:47level and basically come and enter you25:50know25:500.2 or whatever it told me it was um and25:53then even if my trade goes in you know25:55against me and i get stopped out down25:57here um i will only lose two percent you25:59can you know potentially go again uh per26:01trade you know with that um strategy if26:04you need to know way more about26:05technical analysis how to read charts26:08and everything like that i’ve got some26:09other helpful videos for beginners i’ve26:10also got an entire crypto course trading26:13groups as well private groups you can26:14come and ask me questions as well so26:16check that out if you need more help if26:18you want to sign up for kucoin you don’t26:19have an account i’ll leave that link in26:20the description as well i’m james with26:22money’s eg cheers for watching and i’ll26:24see in the next oneEnglish (auto-generated)