But futures trades are very risky, the profit margin is also high, as well as the rate of losses is very high. So many people compare it to gambling. ..
This happens if the trader opens an order using high leverage for the entire deposit, and if the price goes in the opposite direction by only a few percent, he receives a liquidation. This is the similarity with the casino: guessing the direction - made a profit, not guessing - got liquidation.
Essentially, anything done aggressively will have serious repercussions, especially in activities that are clearly risky from the start, like trading. Liquidity will definitely be your best friend when you can't adapt your trading approach to a more minimal one.
Honestly, I'm tempted by large profits, but I'm more concerned about the risks, as not all predictions are accurate. So, to minimize significant risk, I prefer to trade with small amounts. The most important thing, in my opinion, is consistency, even if the profits are small.
Yes no matter what you risk should be prioritised, even in a high probability trade market can still choose to totally disrespect your analysis
So risk management is very important, many people Fail to understand that the real skill in trading is the ability to protect your capital, even if you have enough knowledge, if risk management is something you lack, your will still end up loosing alot because you can't be correct all the time
