In the fast-moving crypto world, traders differ in their methods of making profits; some wait for months to earn just 10%, while others succeed in doubling their portfolios by 200% through a single futures trade.
The difference here is not luck but an understanding of an exceptional financial instrument known as futures.
What is a future?
A future is a derivative financial contract that allows the trader to speculate on price movements without owning the underlying asset.
When opening a long position and the price rises, profit is realized.
When opening a short position and the price drops, profit is also realized.
Thus, futures offer an opportunity to benefit from all market trends, provided one has a correct vision of its upcoming path.
Leverage: A tool for multiplying capital.
The most prominent advantage of futures lies in the leverage that multiplies capital power.
An investment of $100 can provide trading power equivalent to $1,000 or even $5,000.
But this tool carries two contradictory sides:
The ability to amplify profits astonishingly.
And the risk of significant losses that could wipe out capital entirely if used poorly.
Professional Trader Strategies:
Success in futures is not luck but the fruit of commitment and discipline. One of the main rules adopted by professionals is the blending of technical and fundamental analysis to draw trends.
Strict commitment to capital management plans.
Setting short-term goals with clear trades.
Relying on stop-loss orders to protect capital during reversals.
In summary, futures are undoubtedly a double-edged sword; they can be a bridge to unexpected gains or turn into a zeroing tool for the portfolio in a fleeting moment. The essence of success lies not merely in entering the trade but in wisely choosing the timing for exiting it, which distinguishes the expert trader from the amateur.
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