Futures: Why you lose trades

By Shephard | dTruth23 | 27 Apr 2022


I wrote this for intermediary traders and those leveling up in trading Futures, I hope you find it helpful. If you’re reading this you probably not doing so well in your Futures trading so let’s move straight to the point on why you’re losing trades.

Fear of missing out (FOMO): If you’re in crypto and don’t know what that means then you don’t know where you are or probably you are new to the community. This usually happens when you notice a sharp movements in the market, you enter the trade to take advantage of this movement for a quick bulk so as not to miss out on that perceived advantage. That’s gambling not trading and chances are you may not make it out alive. You may survive that in Spot with little or no loss but not in Futures because is like trying to hodl a falling sharp knife. It will cut you, sometimes very dip. Crypto is very volatile, it can move up the way it goes down with equal force so train yourself to avoid FOMO so as not to lose more trades. To avoid FOMO, you need to understand that opportunities in futures market are endless, you will always have time to make a good entry and a clean exit. Don't try to enter a fast moving market because is better to miss a trade than to lose it.

Wrong analysis: Be a trader not a gambler, you don’t think what the market is doing rather you should know what the market is doing. The p-value of a gambler is less than 0.5 (50%) but a good trader has p-value of less than 0.05 (95%), which means a good traders are more sure of their decisions than gamblers because the trader look out for constancy but the gambler is out for luck. Believe it or not, there’s a pattern so always look out for it when analysing your trades and you’ll win more trades than you lose. Don’t ignore the signs given by your indicators because those statistics don’t lie. I will tell you this for free, the market will always move in the direction of what the technical analysis says on a long timeframe.

TP and SL: That’s abbreviations for “Take Profit” and “Stop Loss” respectively. Most people forget to set these things during trading, as you may know which I also mentioned earlier, crypto is very volatile so setting your TP or SL as the case may be will help secure your fund in case of extreme market movement. This also ensures you take your eyes off the screen and attend to other things in life knowing full well that someone or something (a trusted robot) is there to take care of your trade(s) as directed by the TP/SL you set. Set a reasonable TP/SL and don’t let your emotions get the best of you because the market doesn't give in or care about your personal emotions. Therefore, Stop Loss and Take Profit will always be your friend, especially Stop Loss because it protects your fund more than Take Profit.

Thank you for your time, you can drop your suggestions and contributions in the comments section below. If you have used what I explained or you can go try it and come tell us how it has helped you. I ONLY reply to constructive criticism.

P.S.: Futures trading involves substantial risk and this is not an investment or financial advise. Significant profit as well as loss is possible. Learn to trade responsibly to protect yourself.

How do you rate this article?


1

0

Shephard
Shephard

My name is Desmond Nwabuobi. Am open minded and I like crypto contents.


dTruth23
dTruth23

You learn the basics, my teachings are concise and profound.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.