Financial

Why Can’t You Make Money in Futures Trading

Lloyd Blankfein Published On:

There are many differences between futures trading and stock trading. The Commission of futures trading is relatively low, and leverage can be used to make money in both rising and falling markets. But because the futures market is not as transparent as the stock market, it’s also difficult for many people to make money in futures trading. Let’s discuss today what the profit-making principle of futures trading is.

 

Remember, where there is group trading, there is a loss. Because after a group deal, there won’t be a large number of people coming to take the offer. Therefore, the group almost always sells at the lowest point and buys at the highest point accurately, not because of how accurate the group traders are, but because they are often exhausted before reversing.

Even if you have enough trading knowledge and understand the basic theory, you can’t avoid group mistakes.

Most people often lose themselves in the peaceful market atmosphere and forget the various action rules they set when they are awake.

Fundamentals and technical aspects are often challenging to see through. The trading theory is not complicated. The hardest course to learn is controling yourself.

Even setting aside the banker’s manipulation, the “random fluctuations” in prices alone are enough to kill off the vast majority of traders. Because the vast majority of traders do not have enough trading principal to deal with the reverse random space, or even add positions reversely, the result is a blow-up of the market.

The core ability of trading is not how timely you can find out the information, nor how complete you can master the theoretical knowledge. Instead, it is that you always know what you should want no matter when and in what market environment, and no longer enter the market forcibly to seize every fluctuation.

What is the real understanding of trading?

The key to a real understanding of trading is whether you know how to control your desires and emotions and can think independently and not influenced by recognized market emotions.

Profit is not the result of luck, but the result of trading ability. It will take a long time from learning to forming trading ability! That kind of capability is, you can insist that you don’t trade even though the market is booming today and many people are making a lot of money. You are aware that this is not the right market opportunity for you.