#SpotVSFuturesStrategy Spot and Futures trade goes in cycles.🔄 Experienced traders know how to alternate between them. But this is not as easy as it looks. Below, I describe the path that every beginner trader takes in terms of Spot/Futures trading, from personal experience.

Phase 1-5

1️⃣: Fear, Confusion, Familiarization

The trader as a beginner is starting with small Spot trades to familiarize himself with the procedure as for a novice, Futures appear intimidating.

2️⃣: Curiosity, Hesitation,

After getting some experience by trading on Spot, disappointed by the low profits opportunities it has to offer, despite the hesitation, the trader starts with Futures on low leverage, by curiosity and the need for more profits.

3️⃣: False Confidence and Greed

A couple of successful Futures trades are enough to boost his confidence, and greed takes over pushing for higher leverages, which eventually and inevitably lead to liquidations.

4️⃣: Disappointment

Things were not as they seemed, and the thought of getting rich fast fades, so the trader abandons Futures and returns to Spot trading which seems safer and although not getting the desired earnings he is still in the game.

5️⃣: Experience, Maturity

As the trader get more and more experience, he grasps the knowledge of market movements, and switches between Spot/Futures trading or combines then both depending on the situation and the opportunity.