Post
Topic
Board Trading Discussion
Re: Making a x10 or x100 by short selling
by
wxa7115
on 13/07/2023, 03:24:30 UTC
One can simply not hold if they are trading in futures, they will either get profit or get liquidated if the market moves in the opposite direction based on what leverage they have selected for their trade, so it's obviously not easy to get 10x in futures trading, even the ones who are experts of the market tend to lose money when it comes to short futures trading because it is very difficult to perfectly time the market in these kind of situations.

Futures trading is basically not for users who have no knowledge or experience at all, newbies need to stay away from futures trading because they will easily lose all their capital in no time if they just get influenced and start trading futures so that they get a lot of profit in a short period of time.
It could be argued that even good traders need to stay away from futures trading, and this is because the risk taken is simply too high, one of the ways traders have to protect themselves and the capital on their accounts is by using a tight stop loss and by using a small position size when they trade.

But futures trading compounds the risk you are taking many times over by forcing you to reduce those safety measures, and when combined with the extreme volatility we see on the markets a single bad trade can be enough to get your account liquidated, and this means the margin of error while trading in this way is minimal.