Good idea for a new trader to get into derivative trading?

[nelson4lov]

Derivative trading should be duly avoided by beginner traders at all cost. It doesn't help to skip the line and head straight to playing with margins. It usually comes back to hurt, even though not now, in the long run. I have a friend who didn't learn basic trading concepts like candlesticks, chart patterns, risk management etc and he went ahead to start trading derivatives with high leverages between 30x to 100x. The results? series of medium to large losses.

Ideally, one has to crawl first before walking. Skipping will only leave you with knowledge gaps and when you realize it, you might be deep in losses.

[1714626091]

1714626091

[MCobian]

As a newbie you should avoid derivative trading, do what is proven to be low risk. Like hold your coins until you can make a profit.
Because trading is complex, it's not easy to learn, it takes a strong intention to become a successful trader. Do a lot practice trading
on trusted platforms and use small capital to reduce risk. After really understanding about trading and accustomed to doing risk
management well, after that get into derivative trading is not a becomes problem.

[The Sceptical Chymist]

If you're asking whether a genuine newcomer to trading ought to dive into derivatives, I would have to say NO....and I would scream that from the hilltops. 

New traders ought to start small and get a feel for how the market works before putting larger amounts of money into trading and certainly before branching out into things like futures and options and even short selling. 

As far as cryptocurrencies are concerned, I don't think there are many small-time derivative traders on exchanges like Bakkt.  The "little guy" usually does his trading on those crypto exchanges we all know, and they buy and sell actual coins and not derivatives.  To each his own, though.  If there's someone with enough confidence and at least some knowledge of how derivatives work, I say go for it.  That description doesn't fit the usual newbie trader, however.

Derivative trading should be duly avoided by beginner traders at all cost. It doesn't help to skip the line and head straight to playing with margins.

Derivatives and margin trading are two different things, just so you know.  Margin is the use of leverage, and you can trade derivatives with or without it.

[Yamifoud]

Trading could be at high-risk and newbie should have to understand it but it doesn't mean that it is very hard to learn trading. A lot of traders make it pretty easy but the problem is they hardly make it to the right position. Mastery is what we need in trading and it is very difficult to acquire for newbie. If this is only for their experience, not really a bad idea but if they think this for a profitable gain, I'd never have to agree with this decision. Much better to make it alone and develop your skills and strategy in preparation.

[maxreish]

Since we are talking about the new traders here, it is not actually advisable for them to try immediately the derivative trading. Although it is a good way to have a massive profits if one use this kind of trading because we use modern and complex way of trading but it was also complicated for newbies.

Give them time to fully  learn and understand how derivative trading works. For the meantime, they can just hold and consider it as low risk than encouraging them with new aspects of trading that may lead to their losses.

[Wexnident]

It's a "new" trader so no, not really. Though that's just in case of people having fear of losing money, in which case for me, I fear that said trader would lose all his money for just "trying it out" but really, if someone had the financial capability to support himself outside of trading while trying out different things at the expense of believing that they're going to lose everything they've traded for that "try" then I'm all for it. hodl brings profit in the long run yes, and we can see a lot of positivity with regards to hodling BTC, but it isn't really 100% guarantee, plus it takes a long time. If someone had the capabilities like what I said earlier, they could try it basically, even with just a few dollars start-up and slowly increase while learning the know-hows, they should be able to earn profits after a few months.

[Warkop]

Hold then practice a bit so you'll be familiar with what you're trying to do. It's not advisable for someone who's inexperienced in such a thing to do it quickly.
There is no one that's stopping you but it's best if you will take time to study and practice it before getting in. Expect losses as you try to do it on your own if, you start.

That way they certainly know the risks they will face, because if beginners know this there will be a very high risk of loss, without having a strong basic knowledge they have. so it's good if you want to learn to be a novice trader accompanied by friends or experts who already really understand the market and buy and sell well, so of course it's very easy to understand how to do it and where to start.

[batang_bitcoin]

Hold then practice a bit so you'll be familiar with what you're trying to do. It's not advisable for someone who's inexperienced in such a thing to do it quickly.
There is no one that's stopping you but it's best if you will take time to study and practice it before getting in. Expect losses as you try to do it on your own if, you start.

That way they certainly know the risks they will face, because if beginners know this there will be a very high risk of loss, without having a strong basic knowledge they have. so it's good if you want to learn to be a novice trader accompanied by friends or experts who already really understand the market and buy and sell well, so of course it's very easy to understand how to do it and where to start.

I will not advise beginners to trade if they think that they can easily profit as they trade. We have to address to them that trading isn't easy as what they probably are thinking or what they thought how it's being done.
But if the beginner is adventurous and wants to learn a lot from his own experience, no one can stop him because it's part of learning to incur losses as they trade.

[maydna]

Since we are talking about the new traders here, it is not actually advisable for them to try immediately the derivative trading. Although it is a good way to have a massive profits if one use this kind of trading because we use modern and complex way of trading but it was also complicated for newbies.

Give them time to fully  learn and understand how derivative trading works. For the meantime, they can just hold and consider it as low risk than encouraging them with new aspects of trading that may lead to their losses.

They can try to trading, but don't force themselves to chase the profit because that will be too difficult for them. The new people don't have much knowledge to follow the price, which can make them lose money. Perhaps, they can buy and sell the coin, especially if the price can move right to the market, so they can try to sell when the price increases. But still, they need to learn more about trading itself, and don't try with the other type of trading if they don't have the right skills. Trading is not easy, especially if you don't have the knowledge, and don't forget that not all coins can give you a chance to make a profit.

[pageraji]

I am beginner in trading but i dont think i should avoid derivative/ future trading, i am trying to understand and have some experience with future trading so i start derivative trading with 10 $ or less.

[Knepala]

Hi,

Please have a look at the guide I wrote recently

https://medium.com/@sambrans/mastering-trading-with-leverage-a-lucid-guide-b918696384f0

[bearexin]

Generally considered a lot more complex type of trading. Do you think new and budding traders should get into or at least be introduced to derivative trading or should it be avoided, and just HODL at all costs?

There is nothing wrong with introducing this type of trading to people who are still newbies, but if you’re going to be telling them about it you should as well be letting them know the level of risks that are involved in it, because I don’t understand why some people will teach newbies things like this and forget to let them know the risks.

When they are not told about associated risks they will feel it’s easy by judging with those that are making profit. In my experience, all new traders must start from just watching markets and how pro traders are managing "all the things" of trading.

There is nothing wrong with them knowing about it, and if they are interested in it they can then take their time to learn about it and get good at it.

[Ridwan Fauzi]

Generally considered a lot more complex type of trading. Do you think new and budding traders should get into or at least be introduced to derivative trading or should it be avoided, and just HODL at all costs?

The best strategy is hold, you just have a small to lose all your money as long as you choose a good coin like bitcoin.

Derivative trading is indeed a good place to gain profit but you have to aware that you need a high risk as well when doing so.

Thus, I don't reccomend for those newbie out there who directly choose derivative trading to earn money. They should know first the ins and out of the way before trying to start.

[dunfida]

Generally considered a lot more complex type of trading. Do you think new and budding traders should get into or at least be introduced to derivative trading or should it be avoided, and just HODL at all costs?

Sooner or later they would surely come to the point on testing out waters into this field because as you do learn along the way then the scope of knowledge and awareness
on things related to trading will really be broaden up which means all of connected or types of trading will really poke out your curiosity and as a trader you can differentiate
nor do tell between kind of methods and even on profitability.In result you will surely test it out and find out if your experience and knowledge will really be enough
to cope up on the level of risk.Mistakes are common but you shouldnt force it out if you do see that you are losing that much.