The chances of losing in spot trading isn't big compared with other like futures, because you had a freedom on your holdings. It's up to us when to do the trading and you can actually set your target price based on your goals. Once it will hit the bids, then successfully you're going to take your profit.
Cost averaging is what I am applying on every actions I did, because that's very important on your buying and selling. Without that certain skills, you won't sustain because sometimes when it drops you already sold or even bought an asset without remaining buffer. That's why we needed skills in order to continue trading with minimal losses.
That's one advantage in spot trading but some are going to futures for possible high profits.
So it depends really on the trader how well he can execute his trading skills by going in both markets.
For now, I am mostly a spot trader as I don't have much time to analyze the market.
Futures is a very crucial market as your assets can really be liquidated fast in one wrong decision.
I understand the ones who want to make a lot of money, after all it is a lot of money and who wouldn't want that. However, the reason why I am not going to leverage trading is simply because you could lose it all at the same time as well.
Like for example in gambling you make 20-100-500% profits, even when Real Madrid plays getafe the odds for Real Madrid is 1.40 meaning you will make 40% in a day, most of the time in trading you can't make that type of profit at all for something so high probability, real will most likely win that game and you will earn 40% profit, however the downside is that if you ever lose? That is when they take all of your money and not some of your money.
Leverage is like that, you make a ton more profit when you win, however when you lose all of your money is gone. That's why I prefer spot trading, you basically lose a bit of it or win a bit more, but you always have it.
