There are also some traders who are using both like they are "short in the futures market, long in the spot market", I forgot the term they are calling with it. But I believe it really risky though.
To be honest for me, you can minimize your risk in trading on the futures market, especially when you use very small leverage. There are some traders who always complaining that the futures market is risky, but look at what leverage they are using, extremely high.
Topic: The joy of trading the spot market - page 4. (Read 585 times)
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.
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.
I just started trading not that long now and I don't know why people doesn't always talk about Spot trading and how less risky it can be when compared to Future trading. I found more pleasure in spot trading that had given me peace of mind without bothering myself of the fear of losing trades. Although spot trading is not a get rich quick type of trading because I don't have to leverage, making it very slow to make good profits but best for me.
Spot trading and Future or you called it Leverage trading has a big difference so you can't really compare their earning possibilities. There is also no set of risk ratios here. As far as your trading progress is concerned then just keep it that way. Good for you that you are getting positive results on your spot trading.
However, you should not disregard the risks while being comfortable with your current doing. The reason I said that is because you mentioned that with spot trading, you are not bothering yourself with the fear of losing trades. There's no perfect trade, even the hardcore and professional ones, and there will be a chance that you will experience it later on. But because you are not bothering with it, that losing experience might affect your trading views.
Good luck then and just build experience.
High risks, high profits.
For most beginners or someone who doesn't want to take high risks, Spot trading is the best choice. It is less risky.
But for those who have been usual and professional, Future trading is something very promising, moreover, those who already know the analysis and also the strategy.
Even the price dropped suddenly, commonly they have certain strategies to cover the loss by using the SL and also hedging mode so that they can still take profits. It is not about gambling if we know and udnerstand how to trade in the future, although it will not guarantee100%, no analysis will work 100%.
But if we are only putting our luck in the future without any good analysis and consideration, that is gambling.
For most beginners or someone who doesn't want to take high risks, Spot trading is the best choice. It is less risky.
But for those who have been usual and professional, Future trading is something very promising, moreover, those who already know the analysis and also the strategy.
Even the price dropped suddenly, commonly they have certain strategies to cover the loss by using the SL and also hedging mode so that they can still take profits. It is not about gambling if we know and udnerstand how to trade in the future, although it will not guarantee100%, no analysis will work 100%.
But if we are only putting our luck in the future without any good analysis and consideration, that is gambling.
You can only enjoy trading if you are winning and of course if you are learning, there's a lot of risk in trading either its spot or futures, this will always depend on your ability to trade and depends on your trading strategy. There's a lot of good traders that still losing money, I believe this is normal and we can't prevent this one even if we use every indicators so be ready for your future loses. I prefer more to trade on spot, because I can easily control it and I wont lose that much if ever.
Trading spot or futures both carries the risk of losing money. but future trading is indeed more risky. Using leverage wisely will certainly determine your profits and also the analysis needs to be done.
I prefer spot trading, because it is more relaxed and less risky. Just do an analysis of buying when it is deep and selling when it is above. The greater the capital used, the greater the profit, and vice versa.
I prefer spot trading, because it is more relaxed and less risky. Just do an analysis of buying when it is deep and selling when it is above. The greater the capital used, the greater the profit, and vice versa.
The weird thing about this is that even though I keep saying that my political alignment is left, I still enjoy making money out of money and do not be fooled trading is literally making money out of money.
In order to be true to my word I always keep paying my taxes at the utmost level I could and I hope that the money goes to people who need it (I doubt it, most of it goes to military) but at the end of the day we are not really doing anything that is shocking, it is literally just a crypto trading and you buy one coin and trade it for another coin and hope that you could profit from this. I believe that it is certainly a great deal, it is not that easy to make money in day and age by just sitting in front of a PC and make your living like that, I feel like to do that but I am a freelancer not because my trading earns me that much but hopefully it will one day and that opportunity worths a lot.
In order to be true to my word I always keep paying my taxes at the utmost level I could and I hope that the money goes to people who need it (I doubt it, most of it goes to military) but at the end of the day we are not really doing anything that is shocking, it is literally just a crypto trading and you buy one coin and trade it for another coin and hope that you could profit from this. I believe that it is certainly a great deal, it is not that easy to make money in day and age by just sitting in front of a PC and make your living like that, I feel like to do that but I am a freelancer not because my trading earns me that much but hopefully it will one day and that opportunity worths a lot.
I just started trading not that long now and I don't know why people doesn't always talk about Spot trading and how less risky it can be when compared to Future trading. I found more pleasure in spot trading that had given me peace of mind without bothering myself of the fear of losing trades. Although spot trading is not a get rich quick type of trading because I don't have to leverage, making it very slow to make good profits but best for me.
I have learnt risk management in trading and also trading plans that could guide me from being greedy when I'm in the market which is the reason why I'm okey with the little profits I'm making everyday. Although I don't know much about future trading but I'll stick to what works for me and less risk taking.
I may be wrong or right but I still don't see reasons why traders would decides to waste there valuable funds to trade the FUTURE MARKET and still lost there profits and their entire capital when the spot market can be a good alternative to gather good profits but in a slow and steady race.
Why will you choose a high reward trading when your risk to reward ratio could be 50:50?
First of all, let me clearly state a risk to reward ratio of 50:50 combined with a 60-70% win ratio is actually not that good. Secondly, if you practice proper risk management then there is technically no difference between spot trading and futures trading except of the funding that you have to take into calculation when trading, if after learning risk management, you think Spot is less risky, you definitely have to go a long way ahead in learning risk management and position sizing. People use futures and leverage to increase their purchasing power, a good trader will always know his stop-loss no matter which type of trading it is and risk per trade will be predefined which means technically there is no difference between both, the only calculation is to keep stop loss above the liquidation point, that's it. I have learnt risk management in trading and also trading plans that could guide me from being greedy when I'm in the market which is the reason why I'm okey with the little profits I'm making everyday. Although I don't know much about future trading but I'll stick to what works for me and less risk taking.
I may be wrong or right but I still don't see reasons why traders would decides to waste there valuable funds to trade the FUTURE MARKET and still lost there profits and their entire capital when the spot market can be a good alternative to gather good profits but in a slow and steady race.
Why will you choose a high reward trading when your risk to reward ratio could be 50:50?
I may be wrong or right but I still don't see reasons why traders would decides to waste there valuable funds to trade the FUTURE MARKET and still lost there profits and their entire capital when the spot market can be a good alternative to gather good profits but in a slow and steady race.
Why will you choose a high reward trading when your risk to reward ratio could be 50:50?
Is your meat and maybe another traders bad endeavour. It could be that some traders can deal with the so much wait in spot trading and they like quick and fast adventure to make profit. Future trading is the real kind of buying at a point and selling at a point while still making profit despite the position of the order taken. It is faster surely and it is understandable. One thing that is important is that you can make money both ways, and not all person like dull type of dealing.
Spot trading is one of the most profitable means of trading. On the spot market you don't lose your asset unless you decide to leave the market .once you are able to exercise enough patience and wait till a particular coin moves above your buying point, You are already on profit. For the newbies its very important they explore the spot trading before considering any other form of trading.
Traders have different personalities...
Very true and what works for Mr A may not necessarily work for Mr B, so people need to find and be where's most comfortable for them. Both the Spot and the Futures market are there to make traders have a choice. Definitely, there will be people with a different view of the topic of OP, -" The joy of the futures market". It's all a matter of which works for you.
I am not much familiar with future or leverage trading nor I am interested in it. Although future trading isn't direct gambling but something similar to. It doesn't mean future trading is worst, still, it would life-changing trade for pro traders who are experienced in price predictions. Each trader has a different choice and they are stuck with that. They are taking a high risk and earning high as well. Those we aren't high-risk takers then we can't earn high as well. If you want to stick with spot trading then you can, no one forcing you to do future trading. Choose is yours, whatever you like you can.
If a trader gets familiar with futures trading, they'll stay on it. We're the same that I don't stay in futures and would choose spot trading over it because I can do better at spot rather than in futures. I cannot take that much risk with futures because I know my capacity and can't bear that much risk that it will give for those traders that will choose it as their area. If you're good in spot and you're stable on it, there's no need for you to prove yourself through futures unless you want to explore new things and you're just testing the waters.
Spot trading is very slow, yes i agree with that but if you have enough skills and knowledge how to handle your trade there's a possibility as well of good profits afterwards.. And actually it depends in what amount of capital you have in spot trading. Wherein of course if you trade with small capital then it's normal that you can obtained a small profits and so on. So if you want a good profits probably 200$ is enough in my personal opinion.
This really depends on the ability of the traders and also their comfort in trading, in futures trading it will be more risky if the trader is not able to read charts well or if a trader not a typical risk taker then will prefer the spot, but what is more important is never trade only based on feeling many traders just use the feeling that the market will go up or down.
Most of the traders are losing even in spot trading, it's good to know that you manage to know the basics such as risk reward ration and risk management. Actually its really fun trading in spot market if you're able to apply the knowledge you have learned even though you are losing or winning, in regards with futures and leverage I think you can use it too if you're really good in prediction so spot market is a good option to test your strategy and to know it's effectiveness.
I may be wrong or right but I still don't see reasons why traders would decides to waste there valuable funds to trade the FUTURE MARKET and still lost there profits and their entire capital when the spot market can be a good alternative to gather good profits but in a slow and steady race.
Why will you choose a high reward trading when your risk to reward ratio could be 50:50?
Why will you choose a high reward trading when your risk to reward ratio could be 50:50?
Its all about money management. Futures trading with leverage, even 100x, may be safer in hands of experience trader than 1x on spot in hands of newbie.
Risk/reward ratio does not depends on leverage you use. Its being calculated using entry price, stop-loss, take-profit and probability of hitting targets. Not by leverage you used for this trade.
Leverage is only a tool. Its up to you how you will use it. The fact that you don't know how to use it does not mean its useless.
How does trading futures make your risk:reward ratio 50:50? Futures trading just means that you're betting on a certain asset reaching a certain price on a specific time.
Maybe you're referring to trading with leverage? And if so, while it sure makes it riskier, how does it make your risk:reward ratio 50:50?
Maybe you're referring to trading with leverage? And if so, while it sure makes it riskier, how does it make your risk:reward ratio 50:50?
When someone talks about futures, its usually leveraged trading. Usually much more than margin trading which is capped at maybe 10x, futures trading is up to 125x or so. And most people trade perps and not the actual futures, so the expiry date has little to do with it.
And by 50:50, I don't know what he means either.
Whether you are trading at 1x spot leverage or 5x or 10x, you will either make money or lose money with the same risk/reward. Actually with high leverage you are at a loss faster because you still pay fees on the higher leverage.
Traders have different personalities, the risk on futures I think is worth for them because its exponential profit due to the leverage. Before they got into futures market, I'm sure they are also on the spot market.
Just look at the futures market as for the boys who have tons of money who can afford to lose a thousand in 5 minutes.
How does trading futures make your risk:reward ratio 50:50? Futures trading just means that you're betting on a certain asset reaching a certain price on a specific time.
Maybe you're referring to trading with leverage? And if so, while it sure makes it riskier, how does it make your risk:reward ratio 50:50?
Maybe you're referring to trading with leverage? And if so, while it sure makes it riskier, how does it make your risk:reward ratio 50:50?
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