Financial trading offers different approaches to investing and maximizing your profits.

Among these, HOLD (long-term holding) and futures contracts (FUTURES) are two opposing strategies, each with its advantages and risks.

For many investors, HOLD remains a major preference.

For what ?

Because it is less risky, easier to manage and suited to a long-term vision. Here is an in-depth analysis of why HOLD is often preferred.

1. The HOLD: A Pillar of Stability

Less Direct Risks

The main advantage of HOLD is the absence of leverage. Unlike futures contracts, where a bad prediction can lead to the liquidation of your position, HOLD allows you to directly own your assets without the risk of total loss (except in the case of resale at a loss).

In FUTURES, every market move is amplified by leverage, which can turn a small negative move into a devastating loss.

With HOLD, volatility is better absorbed by a long-term vision.

No Permanent Surveillance

HOLD does not require constant attention. Once you have purchased your assets, you can hold them in peace. This saves you the stress of daily management or anticipating sudden market movements, which are omnipresent in FUTURES trading.

Ideal for Solid Assets

With HOLD, the focus is on assets with fundamental growth and long-term potential, without speculation on short-term variations.

2. Futures Contracts: A Risky Double Blade

The Temptation of the Lever

FUTURES allow the use of leverage (e.g. 10x or 20x), which amplifies gains but also potential losses. This characteristic makes them extremely risky, especially for inexperienced investors.

Let's take an example:

• You open a position with 10x leverage.

• If the asset price goes up 5%, you earn 50%.

• But if the price falls by 5%, your position is liquidated, and you lose 100% of your stake.

These mechanics can be fatal in an unpredictable market.

Stress et Surveillance Permanente

Trading FUTURES requires constant monitoring. Market movements can be unpredictable, and unexpected events (economic announcements, regulatory decisions) can cause massive fluctuations. This can quickly become stressful and time-consuming.

Fees and the Compound Effect

FUTURES positions often involve financing fees to maintain a position open. These fees add up over time, eating into your profits or magnifying your losses.

In comparison, HOLD has no additional cost once your assets are purchased.

HOLD, A Prudent and Winning Strategy

For investors who prefer to avoid excessive risk and maintain a simple and effective strategy, HOLD is the ideal solution.

Unlike FUTURES, it does not require advanced technical expertise or active management, and it allows you to maintain full control over your assets.

If you want to maximize your chances of success while minimizing stress, HOLD is a strategy aligned with sound risk management and a long-term vision.

Futures contracts, while attractive for their quick gains, are dangerous territory reserved for experienced traders.

Ultimately, the choice depends on your investor profile, but for a more stable and sustainable approach, HOLD remains your best ally.

Personally, I trade in HOLD and that suits me because I am in it for the long term.

And how do you trade?