Topic: Why Beginners Should Not Go For Future Trading? - page 5. (Read 694 times)

Correction: Demo not Demo.
I agree with this, those people who want to practice without using real money, they can use some demo platforms of exchanges or what common term is testnet.
There are some popular exchanges who got testnet platforms where you can trade using not real money.
For example, are
Bybit: https://testnet.bybit.com/en-US/
Bitmex: https://testnet.bitmex.com/

I think futures trading platform is very risky platform. Those who trade here are all experienced. You can never survive here without completing the experience and you will lose it in no time. This future trading platform is very risky especially for newbies. I have seen many people who have made a lot of money from here and I have seen those same people who once destroyed it. So I would like to say that you must be fully experienced before coming to futures trading platform.

What matters is money management, strategy, patience, emotional control and risk control. If a beginner can manage all this they can venture into future trading and still make good profit from it. Future trading and spot trading can be traded by anyone the difference in result  is attributed to  how much knowledge they have gathered and how the can tackle the market pressure knowing when to buy, sell , exit and avoid the market.

There are two types of beginners here, we have beginners on this forum and beginners to trading in general.
Some beginners in this forum are experts in crypto trading and they know all it takes to make profit and maintain their losses, those types of beginners might be new to this forum but with lot of experience in trading, those beginners are free to go for future trading.

This right here is why I am always scared for beginners, they focus on making lots of profit and this makes them skip the essential parts. One has to be on spot trading for a particular time frame and must have studied it well before diving into future trading. But few weeks into trading you see newbies jumping into it. Crypto trading isn’t forex trading.

This is not only beginners problem, expert traders also get liquidated.
One can lose money in both futures and spot trading. Only tools needs is discipline to an higher extent and not allowing greed take over ones mind.

I totally agree with you. Beginners are not much experienced with their funds management. In future trading we should have a entry point and exit point with proper analysis but but in many times beginners falls into the trap and gets liquidated. That is the worst part of Future Trading to be liquidated.

I also think that beginners are not right for futures trading because this uses high leverage. It's clear how the risks will be faced, especially since beginners don't have strong fundamentals in doing this trading, so it's better to hone those skills in spot trading after all. are ready then try with futures trading it doesn't matter the important thing is mentally and others are ready.

I myself don't play futures trading very often, because I avoid being overly exaggerated from this trade to be honest for now it's better at a calmer spot and not to be overly tense like futures trading.

What I suggest is that beginners have to learn a lot, don't be too aggressive if your skills aren't ready.

This has been written about here so many times, so much so that it seems we have become repetitive, posting the same caveats over and over again. I would like to make a correction to your text, many newbies think that any trade is profitable, not only derivative. Any trading always implies a huge risk that no beginner can handle. It is better not to trade on the exchange at all, but to accumulate coins, quietly going about your favorite business. Trading takes away your peace of mind, your time and your money.

For anyone to have gotten a good cognizance with spot trading and also having a trading pattern then am convince such a trader is good to go with future trading, you have to dare new waters as a trader if you want to make good profits. If you can be a spot trader then you shouldn't regard yourself as a newbie anymore cause a newbie is only but a novice to trading in all ways.

I personally think futures trading is only for the professionals. Even professional traders, at times, find it difficult to manage futures trading.
Most newbies lose money in futures trading. Beginners should master spot trading first before they dive into futures.
The thought of getting higher returns by using higher leverage is the main reason why many lose money eventually.

As a beginner, accept the fact that you know nothing about trading and the only way to turn the tide around is by acquiring as much knowledge as possible, spend a lot of time learning about trading before you even have the mind to give a try, believe that you know nothing yet and keep learning.

People make mistakes after learning trading for a short period of time, they believe that they can handle anything, and when the trade go against them they easily give up on trading. 

It is impossible for you to know everything about trading, there are so many tools and strategies available, all you need is a single trading strategy, and as time goes on, make sure you get better at it.   

I think good ideas for beginner not go for future trading and have experienced how to earn profit with spot trading before trying with huge and faster profit due future trading. Change beginner mindset when first time know with cryptocurrency and begin on future trading, after getting liquid notification they will frustrated and not trying how to invest back in cryptocurrency anymore.

Many beginner want to earn profit as soon possible and future trading will give faster profit than spot trading, but bigger risk waiting with future trading and difference with spot trading although price going drop and our coins keep exist in spot trading and loss when wrong predicting in future trading then our capital loss.

Actually I just shared to help beginners because I also faced this types of problem and you are right leveraged altcoins are also risky. And I didn't mentioned clearly but I said about Bitcoin leveraged token. I invested in SXPBULL token and lost my entire funds. So I want to clear that never go for altcoin based leveraged tokens.

Have you checked leader board before on any exchange that are showing it to derivative traders? If you check it, you will notice that you can be able to see the percentage of ROI of each traders on the leader board. If you calculate it with the the difference of the entry price and mark price of the asset they are trading, you will notice that most leader board traders use 1x leverage. They prefer to use high amount of money but with no leverage or not even using all their money on their trading account, which can be know if they use crosss margin mode, you can not know that with isolated margin mode.

But as a beginner, use less than the amount of money you can afford to trade with.

As a good trader, use the amount of money you can afford to lose to trade.

If you should increase you trading fund, that means you have more success rate in trading position opened. If not, still always use the amount of money you can afford to lose to trade.

For bitcoin, 5x is getting high for me, but I can use it in if the market has gone very low, I prefer 3x for bitcoin. I prefer 2x for altcoins if I know the market will favour me when the market have gone very low, but I like 1x overall.

Good traders which are professional enough do not want to be fighting with emotion, that is why the prefer to open 1x or leverage, if they are losing, they still believe the market will correct itself either in short or long term. That is why you will see them losing but not closing position, but it is not a surprise anymore that the position opens that you thought they are losing would later favour them and they will gain massively.

But for those that just leverage, the greed has been what is causing them problem and liquidation which is the regret that they have.

What traders need most to first know are risk management and strategies, then followed by how to make analyses, starting from knowing about charts and indicators.

If you are talking about bitcoin, your post is good and I would have given you one merit, but altcoins are dangerous with 5x, it can result to liquidation.

Maybe as newbie you won't lose your money with spot trading as fast as you would with futures, but you will most likely end up losing money anyway. Sure, you may get lucky once or twice at the beginning thinking that is so easy to simply "buy low and sell high" while in reality you will end up doing the opposite.

I did the same mistake back in 2017 as I thought that i am pro trader just because I was profiting during bull market. Then shit hit the fan and bear came and I quickly realize that I have no idea what I'm doing so best course of action was to switch to hodl mode. Best decision ever.

tl;dr newbies should avoid trading allogether.

They are not beginners any more in this case and this is the right path to take. Before fully going into trading or investment one has to acquire as much knowledge as they can, for investing you can start with the basics first, but trading requires lots more knowledge before you attempt.

Beginners Thought : Almost every Beginners think Future Trading is much profitable than Spot trading. I am also agree with you but Future Trading isn't for all. In future trading we usually used to use high leverage which cause high risk of being liquidated. We usually used to see people are making huge profits from Future Trading. But they are not like us.They are much Experienced and have well management of their portfolio. Youtubers and experienced traders usually trade with high leverage and they also do deep technical Analysis to open any position.

So What Should I Do As A Beginner? : I think Beginners every traders need to have experience of trading. And also must have knowledge about technical analysis. You guys can use TradingView to analysis by own and also can see others analysis about the market or about any specific token or trading pair. I will advise you to do Spot trading because there you have a little risk to lose your funds but in future trading you can be liquidated in a short time and can be frustrated. When You see market is in bull season you may buy some 3× or 5× Leveraged Tokens that will give you high returns. Though almost every trade you open there must have a perfect technical analysis and trading strategies. You can still now use future trading but my suggestion will be never use high leverage at all unless you are fully confident about the market.

Edit: Trading beginners can practice future trading with Demo funds. There are some exchange available where you can trade with demo assets. That will help you to build a good experience in future trading.

Also Experts are welcome to advise new users about Best trading Strategies.