For Spot Trading (Buying things right now):
* "Buy Low, Sell High" is your main goal. This sounds simple, but it means you need to watch the market.
* Research the Asset: Before you buy, learn about the company (for stocks), the news affecting the commodity (like oil or gold), or the future of a cryptocurrency. This is called "fundamental analysis."
* Look at Charts: Use charts to see how prices have moved in the past. This is "technical analysis." Look for patterns that suggest prices might go up or down soon.
* Set Price Targets: Decide beforehand at what price you'll sell to make a profit (your "take profit" level) and at what price you'll sell to limit your losses (your "stop loss" level). Stick to these to avoid emotional decisions.
* Start Small: Especially if you're new, don't put all your money into one trade. Spread it out, or start with smaller amounts you're comfortable losing.
* Patience: Spot trading can involve waiting for the right moment to buy or sell. It's not always about quick profits.
For Futures Trading (Agreeing to buy/sell later):
* Understand Leverage: This is crucial. Futures let you control a big amount of something with a small amount of money. This means both profits and losses are magnified. Always be aware of how much you can lose.
* Risk Management is Key: Because of leverage, you must have a strong plan to limit losses. Always use stop-loss orders. These automatically sell your position if the price goes against you by a certain amount.
* Trend Following: A common strategy is to identify if the price is generally going up or down (the "trend") and then trade in that direction. For example, if oil prices are generally rising, you might buy futures contracts.
* Hedging (for businesses/investors): If you already own something (like a farmer with corn), you might sell a futures contract to lock in a price and protect yourself if prices drop before you can sell your actual product.
* News and Events: Futures prices are very sensitive to news. Keep an eye on economic reports, company announcements, or global events that could affect the asset you're trading.
* Practice with "Paper Trading": Many platforms offer "paper trading" accounts where you can trade with fake money. This is an excellent way to learn and test strategies without risking real money.