How tough is futures in comparison to spot trading

[Lanatsa]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Not as tough as people think it is, because futures doesn't mean high leverage all the time, you could have low leverage as well, hell you could just bet on a certain date basically. The problem is the leverages, if you do like x150 then you are not going to end up with any profit most likely and even if you do once, if you keep doing it eventually you will be wrong and you will lose it all.

I would say that spot trading is easier, you get to make 1-3% profit per day easily if you know what you are doing, do that over course of one year, and you are going to have an insane return. I know you can't make 1-3% daily return of course, but you could make on average 50%+ profit per year. Do that for 20 years and you are wealthy beyond your dreams.

One of the main reasons on why people do really ends up on having that failure when it comes to futures trading is that they do really intend to set those bars too high or simply making those leverage on max
on which they dont even think about on the risks that involves on which it would causing up for their capital to bust up in a short period of time whenever the market would really be going opposite on what they had predicted or anticipated. Somehow despite of the risks involved into it, theres still those traders who do really that loving on dealing up with 50x to 100x or more but just like on what you have said that you could
set those leverage lower on which it would really be something that gets in line with your risks management.

Just like on what everyone is telling that you would really be needing to make yourself that doing well with spot trading before you would be diving in with futures trading.
Somehow even myself cant really that perform well on futures despite on trading up for so long with spot, this is why it would really be something situational.

[johnsaributua]

Like 2 rippling water currents, I mean futures trading is very steep, even so you can set how much to borrow at initial entry (leverage) of course can take two trend directions into profit if the analysis has a good probability, on the contrary, it will be liquidated if it is too deep and the assets in the futures wallet are not able to withstand, for me this is trading event / I go with the maximum profit I think as soon as possible.

While spot is safer, even if the bearish trend your assets remain intact even though the value is reduced also tends not to be wild and I usually for the long term / hodl sell when the bearish trend only.

The idea of futures trading is an innovation of cex and trading activists, true spot trading is conventional trading worth trading assets and its true function.

[Barikui1]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

As a newbie trader, I would advice you to stick to spot trading because it's mostly buying and selling, in other words, you buy low and sell high, but the future market is more difficult because you predict the movement of the market, if it goes your way, you make money and if it goes against you you lose money.

Secondly, talking of demo trading which you have been doing for sometime now according to you, and you have been successful in it, I want you to have it at the back of your mind that demo trading is nothing compared to live trading, because in demo trading their is no emotions like fear and greed, so just know that you stand a very high chances of losing a whole lot of money if you can't control your emotions when trading live, but I would advice you to keep off for now, till you are more knowledgeable enough in the craft, and know all it entails and how to navigate your way in the market and be profitable, or due you want to learn the hard way?

I would just advice you to keep off for now, because it's for your own good.

[fuguebtc]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

As a newbie trader, I would advice you to stick to spot trading because it's mostly buying and selling, in other words, you buy low and sell high, but the future market is more difficult because you predict the movement of the market, if it goes your way, you make money and if it goes against you you lose money.

Secondly, talking of demo trading which you have been doing for sometime now according to you, and you have been successful in it, I want you to have it at the back of your mind that demo trading is nothing compared to live trading, because in demo trading their is no emotions like fear and greed, so just know that you stand a very high chances of losing a whole lot of money if you can't control your emotions when trading live, but I would advice you to keep off for now, till you are more knowledgeable enough in the craft, and know all it entails and how to navigate your way in the market and be profitable, or due you want to learn the hard way?

I would just advice you to keep off for now, because it's for your own good.

The mistake that many traders make is that they use a demo account for a long time and they think that if they can be successful with a demo account then they can do the same with a real account. Demo trading is really ineffective because as you said, we have no emotions while emotions account for 90% of the decision of success or failure when we participate in real trading.

What's more worrying is that although OP is new to the market, he already has the idea of ​​becoming a futures trader, which means he has a get-rich-quick mindset. Those with a get-rich-quick mindset often do not achieve good results when participating in the market. If OP actually listens to everyone's advice, I also hope he stays away from futures trading.

[Mr. Magkaisa]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

       -   Spot and futures trading have the same risk that will affect our fund if the method we used is not correct in itself. It's just that when it comes to the actual action of the trading activity in the futures trade, it's only slightly higher in terms of risk level compared to the spot.

In the spot, whatever fund you have placed to be traded is the only one that can be lost or reduced from your fund because it is isolated; unlike futures, if you make a mistake in setting up and you put it in the cross margin, your fund will be scrapped. especially your understanding of trading, which is shallow. So intelligence and understanding of trading are needed here.

[bitLeap]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

When I first started, I also had optimism like you, as if Future trading seemed to be easy to control, because I had done it many times in the demo and on the testnet exchange platform, but believe me, that was not enough. There are many factors that must be considered when you want to dive straight in with real capital. You also need to prepare 50/50 liquidity to really be a little safe. Using maximum leverage may give you more time, if you use a short timeframe, small capital will only make you lose quickly. For this reason, I recommend applying future trading methods with a scheme such as spot trading.

[SamReomo]

As a newbie trader, I would advice you to stick to spot trading because it's mostly buying and selling, in other words, you buy low and sell high, but the future market is more difficult because you predict the movement of the market, if it goes your way, you make money and if it goes against you you lose money.

Good advice to a newbie trader. I would also suggest him/her to do trading at spot market instead of moving to futures marketing.

In spot trading a newbie won't lose his/her initial capital while in futures marketing any wrong trade with leverage could liquidate that trader's capital.

I've been into trading for many years but I still try my best to avoid futures market because it's quite risky and one can lose money instead of making money as a trader.

I would consider futures market as a gamblers haven while spot market as a traders haven. Because in simple words futures market is similar to gambling while spot market in more like traditional trading.

[EarnOnVictor]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

If you've been trading the futures market then spot trading will be a workover for you. Spot trading is similar to normal wallet keeping that is solely for an investment purpose which you can hold at any time. In addition, it helps you to manage your holding portfolio better. This is why people use it, otherwise, there will not be any need for it. It also helps the investment in the cross-market matrix, so it is very convenient, to say the least.

On the other hand, futures trading is leverage/margin trading, which invariably means that you are risking higher with it. It is just like the regular financial market trading with traditional brokers, the risk of losing your money is always high. Notwithstanding, you have the chance to make more money with futures trading than the spots trading.

[leonair]

In spot trading you can buy a coin and hold it until you can make a profit.  But in case of futures trading you will be at risk as per your leverage rate and if you take wrong entry your balance will be zero and trade will be stopped immediately.  Futures trading is like gambling so it is best not to go here if you cannot afford to lose. Futures trading and gambling are almost equally risky so not everyone has the ability to manage it.  I would advise you not to do futures trading unless you have a large financial backup

I think spot trading is much better than future trading. Any person can lose all money from future trading and become destitute at any time. Future trading is not for everyone but those who are more addicted to trading are busy with trading. Future trading gambler.  More scary because futures trading can be good or bad in very short period of time it depends entirely on luck. So I always try to stay away from futures trading. Spot trading is my favorite.  Because there is no risk of losing all the money if I ever face a loss from spot trading but there is a risk of losing all money from futures trading.

[wxa7115]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Futures trading is many times more risky than spot trading, and the most important reason for this is leverage.

Exchanges often promote the use of leverage among their customers by claiming that the higher the leverage the higher the profits, however this is a half-truth, as you are not being told that your losses also grow in the same proportion to the amount of leverage you use, so it is a bad idea to use a high leverage as an experimented trader, and in your case this is even worse since you have no experience at all.

[2Pizza410000BTC]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Comparing futures trading with spot trading I would say futures trading is much riskier than spot trading. If you want to jump straight from demo trading to futures trading then you are going to make a big mistake. You are guaranteed to lose money in futures trading but in spot trading even if you are in loss there is a chance to recover it but in futures trading whatever you lose is gone forever there is no recovery mechanism. I also received a $50 trial fund from an exchange that said it could only be used for futures trading. I have used it and had good success there. But here I am not able to take permission to do futures trading directly from my success. But whatever you do, futures trading has maximum risk, if you can trade with this maximum risk, then definitely do it, there will be no problem, but you must be careful.

[Maslate]

As a newbie trader, I would advice you to stick to spot trading because it's mostly buying and selling, in other words, you buy low and sell high, but the future market is more difficult because you predict the movement of the market, if it goes your way, you make money and if it goes against you you lose money.

Good advice to a newbie trader. I would also suggest him/her to do trading at spot market instead of moving to futures marketing.

In spot trading a newbie won't lose his/her initial capital while in futures marketing any wrong trade with leverage could liquidate that trader's capital.

I've been into trading for many years but I still try my best to avoid futures market because it's quite risky and one can lose money instead of making money as a trader.

I would consider futures market as a gamblers haven while spot market as a traders haven. Because in simple words futures market is similar to gambling while spot market in more like traditional trading.

Well said mate. There's more of risks for futures market most especially if you are just here trying your luck and rush into trading without much knowledge and experience in the market. So I hope instead of trying to increase the risk and chances of losing, why not go for a more secured trading outcome and if ever you lose, at least you won't be losing a huge amount. Stick to spot trading for now, but never put a limit for it and still continue to learn the process of futures trading.

[DaMut]

As long as you have been practicing and doing very good then it's fine you can jump in. But kindly note that when you trade your own funds it's a different scenario compared to demo so be ready for some dramas when you finally jump in and also note that futures is risky. Don't over leverage for start.

[Ahli38]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

If we talk about the level of difficulty, of course the futures market is much more difficult. But the difficulty here is not about the analysis that must be done or anything like that. Because in making analysis we do the same thing as in the spot market. but the difficulty that I felt while trading in the futures market was in managing emotions or emotional management itself. When you practice futures trading in the demo version it will feel easy because your emotions are not so affected by the market. But when you dive directly into the real market, you will understand for yourself how difficult it is to manage emotions in the futures market. Leverage adjustment is one of the important things in this case. Because we have to keep our position far from the position that causes us to be liquidated by the market. So the management of capital used in margin must also be considered. The point is that the futures market is more difficult than Spot. Because the level of risk is much greater. And usually people also lose more of their money in the futures market. Just look at the positions that are liquidated every time. It was truly terrible.

[michellee]

As long as you have been practicing and doing very good then it's fine you can jump in. But kindly note that when you trade your own funds it's a different scenario compared to demo so be ready for some dramas when you finally jump in and also note that futures is risky. Don't over leverage for start.

Using money from a demo account will be different than using our own money. The pressure will be high when we trades using our own money. If we don't have skills and can not control our emotion, we will lose that money, no matter if we use spot or future trading.

We must remember that doing futures trading will be difficult than spot trading. We may lose more money in futures and when we lose, we will difficult to gets that money if the market still moves the same. It is better we still learn more about trading and trying to trade in the spot trading before we decides to use future trading.

The moves will not easily to analyze and predict and once we make a wrong analysis, we will becomes panic and can not thinks clear. It is better if you familiarize yourself in spot trading and understand how to use the indicator and other things. That will helps you to analyze the market when you start future trading.

[Distinctin]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Most newbies these days often think trading like gambling, that they can win instant big amount even without prior knowledge and reliable experience in the market. That’s how these crypto trading influencers have effected a huge impact to these new traders, and see them almost losing in the end.

Spot trading is very much different from futures trading, knowing the fact that spot trading is preferred by most risk-averse traders while futures trading is only good for those who have high experiences in the market and would always want to stay high risk traders. One thing is common of them, both are susceptible to losses most particularly if the trader itself turns into a gambler, not a real trader that creates reliable trading decisions.

[Gaza13]

I think spot trading is much better than future trading. Any person can lose all money from future trading and become destitute at any time. Future trading is not for everyone but those who are more addicted to trading are busy with trading. Future trading gambler.  More scary because futures trading can be good or bad in very short period of time it depends entirely on luck. So I always try to stay away from futures trading. Spot trading is my favorite.  Because there is no risk of losing all the money if I ever face a loss from spot trading but there is a risk of losing all money from futures trading.

Yes, we all agree that spot trading is much safer than futures trading, even though both have their risks. Futures trading does not depend entirely on luck but rather on each trader's skill in predicting or analyzing the market. It is indeed very difficult to get the desired results from futures trading, of course it requires knowledge if we want to transact there.

[bitgolden]

One of the main reasons on why people do really ends up on having that failure when it comes to futures trading is that they do really intend to set those bars too high or simply making those leverage on max
on which they dont even think about on the risks that involves on which it would causing up for their capital to bust up in a short period of time whenever the market would really be going opposite on what they had predicted or anticipated.

There is a simple rule that everyone needs to follow which they don't, especially newbies. The rule is to gain enough knowledge before getting involved in anything, whether it's futures trading, spot trading, options trading, or anything else in general. You can't expect to gain success in something without having any knowledge about it unless you are an extremely lucky person who tends to succeed in anything they do without any prior experience or knowledge.

For a person getting into a volatile market such as the cryptocurrency market, they need to have a lot of knowledge about the market before they start trading, and when we talk about futures trading, it's risky even for experienced traders, so if you are not experienced and also have no knowledge, you don't stand a chance.

[shinratensei_]

Yes, we all agree that spot trading is much safer than futures trading, even though both have their risks. Futures trading does not depend entirely on luck but rather on each trader's skill in predicting or analyzing the market. It is indeed very difficult to get the desired results from futures trading, of course it requires knowledge if we want to transact there.

I've seen plenty of scenario where TA works wonder with trading but also many times where sudden squeeze come to the market out of the blue so luck definitely have big role here.

What makes more future trading interesting despite all the risk I think is due to the fact that the nature of future trading usually is short term, sometime some people use really high leverage such as 125x to trade for the period of seconds, the technical analysis usually works so often with future trading, sort of self fulfilling prophecy where with long term TA usually falls short because we are talking about minute chart, the short order and long order based on Technical Analysis like drawing chart pattern seem to be the dominating orders.

but yeah, future trading is too risky for most of people, with 125x leverage it only needs few cents down or up for coin like BNB for example to liquidate all our assets .

[shield132]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Everything is about leverage. If you trade futures with 1x leverage, then it's not different from Spot trading but as you increase your leverage, you increase your chance of high profit and high loss. Everything becomes more tough when you start opening short position besides long positions because in case of short, if price starts increasing, you are going to lose money and if you use leverage, there are sometimes chances that price will hugely pump for a few minutes, that can be enough to liquidate you. It's the same for long position with high leverage, sometimes price significantly falls down for a few minutes and that can liquidate you too. Futures trading can potentially double, triple and offer you far more profits but the risk is going as well. Don't be too confident that you'll manage it. If you want, try it yourself but don't be too confident, it's not as bright as it looks from one look.