Quote from: notocactus on March 29, 2025, 03:18:45 PM

Quote from: Forsyth Jones on March 28, 2025, 06:00:15 PM

Futures trading is the easiest but hardest way to make a lot of money in less time, with little capital, because that is the purpose of leverage. And yes, it's quite tempting, because you must control your greed, otherwise, the chances of losses are 96%. The odds are against you, you just have to turn the tables, understand the market patterns and you will start making money.

I don't consider anything as difficult or hardest as easiest, hardest and easiest are oppositely with each other. Trading can bring profit in short term, and sometimes you simply need luckiness to get profit in one trade position but in fact, profit or loss with a trader must be in-net, net-loss or net-profit. Trading is hard and trading with Margin or Futures is hardest trading, so you will have highest risk of losing money with Margin or Futures trading. It's not easy, and surely not easiest.

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It's recommended to start with little capital, because when you are inexperienced and start with losses, those losses will not discourage you so much that you give up, over time, you learn to make better entries within your risk management.

I agree. Trading capital must be very small part of all capital you have, and by separating your trading capital into some smaller parts, you will have second, third, and n chances to trade again after losing your previous trading capita part and learn some lessons from it for doing better later with other capital parts.

Just imagine, I entered a long BTC position at the beginning of november and as my ROI was increasing with profit, I was adding new investments, making small DCA purchases and I made some sales while I was in profit. However, when January arrived, I was at a loss to the point of being stopped/liquidated, because due to my DCA purchases, as my profit increased, my average price increased and the closer to the average price, the closer to the danger zone. This was stressful.

Result: the position was closed, as it had an expiration date at the end of march and I was at a loss, as the BTC Price never recovered, at least above my entry price. Next time, I will opt for perpetual contracts, and as my profits increase, instead of buying, I will sell and repurchase only if there is a correction again.

I will wait to see what direction Bitcoin will take, if at least the BTC's price stays above the 200 MMA on the daily and 4H charts and look for new entries. A monstrous trade is made with patience.

This is the logic of futures: trade a little to earn a lot and wait for the market to give you new entry opportunities.