#TradingTypes101

Futures trading is a type of trading that requires more thought and planning than most people assume.

The key point is: “If you want to make money, you need to predict the direction correctly.”

While many people are familiar with spot trading, futures trading allows the use of leverage.

That means you can enter larger positions even with a small amount of capital—but the risk is also much higher.

Not long ago, I took a small BTC futures position with 5x leverage.

The price went up and I made a small gain, but because I didn’t set a stop loss, the market reversed and I ended up taking a big loss.

That’s why if you’re going to trade futures, risk management and stop-loss settings are absolutely essential.

Even though I lost on that trade, I see it as a learning opportunity.

Before jumping in, remember this: Knowledge and preparation are the keys to winning.