In financial markets, we often see two main schools of thought:
Day Trader: They trade for short-term profit, often using analytical techniques to make decisions. Professional traders must monitor the board and update news continuously to seize opportunities. They know how to manage risk, always have rules for cutting losses and taking profits.
Value Investors: These are people with a long-term vision. They don’t need to be glued to the board every day, but rather look for valuable assets, price them appropriately, and wait to buy them at a good price.
I often advise people not to engage in Futures trading (long short), but I am not saying that this method is completely wrong. In fact, there are many people out there who have succeeded and become rich with this strategy, but they are professional traders—people who have enough knowledge, experience and time to monitor the market continuously.
🙄 Why do many people lose money when trading?
I noticed that many people who join social media groups often press orders 90% of the time to make a profit, but in reality not everyone is successful. There are people who still burn their accounts, or only make a small profit, even though they follow orders like professional traders.
This is simply because they do not understand how the market works and do not have clear rules when trading. They let their emotions control their decisions, do not set TP (Take Profit) or STL (Stop Loss), and do not understand the market trend. These things make them take higher risks.
😅 Time and psychology
I have experienced these feelings. We all have our own jobs and lives, with many responsibilities. We have to eat quickly in the morning, rest at noon, and have fun in the evening. But many people still try to make money from trading like professional traders without having time to learn and follow the market.
Often, when they see others calling orders in a group, they join in without preparation—no TP or STL placement, no interest in market trends. When fluctuations occur, they don't react in time and end up burning out their orders or just breaking even.
🥳 Recommendation
That’s why I always emphasize that you should consider before participating in futures trading. Trading is not good or bad, it is simply not suitable for many of us. We are usually semi-professional traders, and in that context, having a long-term vision is a wiser choice.
Take the time to learn and build an investment strategy that fits your ability and life. From there, you can achieve your financial goals without being pressured by short-term fluctuations. Good luck everyone!