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.