I've been thinking a lot about futures trading lately. It's not just about quick profits but how it fits into a larger trading strategy. It's crazy what you can do with it if you really get the basics down. For me, it's more about managing risk and balancing out my other trades. Seems like it's one of those underrated tools in trading, you know?
But I totally understand why some folks steer clear. Things can get hectic, and it’s not really beginner-friendly. Still, once you get the hang of it, it really opens up a new way to trade. Just curious, how do you guys use futures?
Is it mainly for hedging, or are you all about those high-risk plays?
for me it's a good tool, for taking advantage of the resistance and support.
we all know that whenever prices hits support or resistance, it always bounced back for the first time, I took advantage of it using high leverage trading in which otherwise become meaningless trade because the bounce probably just 1-2% but with leveraged high trade, I can turn it to 100% profit. of course there's risk management.
I usually only bet using $15 as my margin and proper TP/SL, future trading is a powerful tool if you want to make quick bucks, as long as you know how to do it. it becomes problematic if you use really high leverage for long term, because market like to create wick.
Its a good tool if we are aware of what we can face in futures trading, we may be able to get quick bucks but we can also quickly lose our funds if the analysis we do in the trading activity is wrong. We know how high the risk is in futures.
Many people have tried futures with extensive knowledge but they also cried in the end because of the completely wrong technical analysis they did in the actual trading they did.
Well for me Id advise to stay away from futures if they dont know how to derisk or accept some risk while doing it. Futures might be a good practice for small amount and check it whether it works for you or not. Familiarize the process specially the stop loss and target profit. Also the margin how it works like putting some leverage to avoid easiest liquidation.
Futures trading is risky because you can never be correct 100% all the time which means, if you are not ready to lose, you should only invest in the crypto and hold it. Some people say they want to flip account in a short term period using futures trading, it's not like it can not be archived but the risk is bigger and I don't expect a newbie to start having the thought of how they can just flip their account within a short time period, if it was that easy, many people will be doing it. In my knowledge, trading can service as a gambling scene for you if you want it to be but if you also see it as a real activity to make money from, then you will make money consistently from it and despite the losses, you will still be in profit if you have master the basics of it.
In feature trading is involved of a lot of risks, so in that case I will know advice anyone that is not reach lose in feature trading to introduce itself into it; rather advice the person to invest in Bitcoin or any other Altcoins that is legitimate, so that it can hold it for a long period time: and also be watching the market for him to aware when the market goes well.
Because their some newbies that they will be having interest on the features trading without make research about for them to know how does it operates, or seeking for a knowledge so that they know how to avoid the risks that are involved.
I always consider future trading to be a tool to maximize profit, but often misused.
whenever I scrolled on twitter I see some people who leverages their trade on hyperlane and seeing their unrealized PnL in times of bullrun like this honestly it's astonishing and it does opens up a new world of opportunity, imagine using $1k margin to control $10k, so if coin doubles in price, you'd get $20k profit with just $1k, of course risk are there, but if we bought at the bottom of the bottom like when BTC was $18k which means really low risk and high profit trade, it's gonna be massive.
with prerequisites though, that you can mantain funding rate
Personally, I avoid futures trading because it's quite risky for the ones with weak hands and poor mindset. I have seen many people emptying their accounts by doing futures trading and that's a fact. Futures trading can be a good source of income but for experienced traders only, who can control their emotions and who doesn't trade with high leverages. For most traders, it's way to lose money and nothing else, especially for the traders who want to get rich soon.
Futures is a high risk and high rewards endeavor. As someone that has been liquidated a lot and also had my fair share of gains, I can tell you that it's a great tool but only in the hands of someone who can use it and requires careful usage otherwise, you might end up losing everything in your account. I have seen people likened futures to memecoin trading and they're not wrong.
All trading is risky but even though leverages exponentially increases that risks, so does the rewards.
Futures trading is all about luck, as when you take a trade you have to get out of it in a short period of time. If you wait a little longer, your chances of getting a position will be higher, but I would advise you to stay away from futures trading as per my advice.
Because I have been liquidated twice this week, I am taking some rest at the moment. My $916 is completely submerged in water, because it is completely unknown about the future, so you have to take risks and take trades. If you stay away from futures trading as much as possible, your money will be safe with you.
My thoughts exactly, while it's a good tool it's also quite risky. Futures on a normal day is quite risky and with a high leverage, it's even higher and you can ask 10 people and 8 will advice against doing this. If it was for guaranteed gain or minimized risk then it would have been understandable but it's not everytime you get to see a futures subsidy https://www.bitget.com/support/articles/12560603819591. So the risk is high overall
Luck? I don't think so. It's not entirely based on luck but also skill. I'm not talking about a skill issue here but it had been proven to be possible (build a small portfolio to a bigger from with futures). I have been limited from time to time and I've also had wins.
Futures and leverages are risky endeavors that are high risk/reward and should be played with extreme condition, if you do it right, you get the reward. If you do it wrongly, your high exposure might rekt you.
Sorry about your loss
Thats an interesting way to approach it playing those key levels with high leverage definitely makes those small bounces worth it. I like that youre keeping your margin low too; feels like a solid way to manage risk without overexposing yourself.
Totally agree on the wick problem though markets love to fake people out, especially on longer timeframes. Ive been trying to incorporate more cautious TPs/SLs myself to avoid getting liquidated. Curious though, do you stick to just major supports/resistances, or do you also use indicators like RSI or moving averages to confirm the setup?
Man, I feel you on that getting liquidated stings, especially when the market just doesnt move the way you expect. Taking a step back to reset is smart though; sometimes a breather helps you come back with a clearer mindset.
I dont think futures trading is all about luck though. Sure, theres risk, but having a solid plan good entries, tight risk management, and not over-leveraging makes a huge difference. Ive been trying to focus more on balancing risk and reward instead of chasing big wins.
Hope you bounce back stronger when youre ready to jump back in. You got this