Since I returned to the space, I have continued to learn new things about the crypto ecosystem. I only recently started learning how to trade futures, and I know very little about it. I made the decision to analyze a pair and trade it. Using the resistance and support technique, I choose the ARB/USDT pair. In a 15-minute time frame, I made the decision to buy/long at $1.7077 and placed my stop loss at $1.635 because that is the invalidation zone, meaning if the price cross the invalidation zone, then the price will drop drastically.
After setting my entries, stop loss, and TP, I went to sleep. The trade hit my stop loss this morning when I woke up, and it actually went below the invalidation zone. If you look closely at the chart, you can see the sharp decline in price that followed the trade's crossing of the invalidation zone.
I used 8X leverage, and as a result, I lost 34.93% of my capital when the trade reached the stop loss. This represents the maximum amount I felt comfortable risking as the trade went against me.
Though I'm still learning, I'll try to look at the chart and figure out what went wrong. This is also broadening my experience.
Futures trading carries a high level of risk, but if you master technical analysis and risk management, you're good to go.