Why are bearish markets bad if there are future contracts?

toli

toli

I was recently asking around this forum about profitability of the crypto trading. I got answers that 2022 was a bad year because the markets were down. But now I'm experimenting with Binances demo account, and learning about the futures contracts. What I learnt is that they allow you to trade with leverage and take short positions even if you don't have underlying asset.

So, even in the bearish market, it seems you can "sell" the asset you don't have and then "buy" it back for profit. So you can make money even in the bearish market.

Where's the catch? Why do I get the vibes from every resource that you can only make money in bullish market and bearish is bad?
 
This sounds like a job for @johnarb

I don't know Binance. There's BTC futures on the CME, and options for BTC on the CBOE, but does Binance offer their own futures product?
 
toli said:
So, even in the bearish market, it seems you can "sell" the asset you don't have and then "buy" it back for profit.
So you can make money even in the bearish market.
More...
Q) So you can make money even in the bearish market.
A) Oh, hell yes. Ain't it Great!
Here's how.
First, you Sell-to-Enter a Copper futures contract at say $4.30 and
Second, you Buy-to-Exit a Copper futures contract 16 days later say at $4.00.
Third, you Rake in your $7400 profit.
Your broker will want you to have a balance to cover margin of say $11200 or so.

Trade 'em Up or Trade 'em Down, but ya gotta Trade em Right to get paid.

hell yeah 866 truck.jpg
 
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toli said:
I was recently asking around this forum about profitability of the crypto trading. I got answers that 2022 was a bad year because the markets were down. But now I'm experimenting with Binances demo account, and learning about the futures contracts. What I learnt is that they allow you to trade with leverage and take short positions even if you don't have underlying asset.

So, even in the bearish market, it seems you can "sell" the asset you don't have and then "buy" it back for profit. So you can make money even in the bearish market.

Where's the catch? Why do I get the vibes from every resource that you can only make money in bullish market and bearish is bad?
More...

It is safer to trade Bitcoin (or its micro) futures from CME.
Trade the most active contract which is BTC G23 or MBT G23.
If you intend to hold on for many days/weeks, you might have to roll over from the
G contract to the next active contract.



uptrend - press the BUY button first.

downtrend - press the SELL button first.

no trend - don't press anything
 
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easymon1 said:
Q) So you can make money even in the bearish market.
A) Oh, hell yes. Ain't it Great!

First, you Sell-to-Enter a Copper futures contract at say $4.3295 and
Second, you Buy-to-Exit a Copper futures contract 16 days later say at $4.0305.
Third, you Rake in your $7400 profit.
Your broker will want you to have a balance to cover margin of say $11200 or so.

Trade 'em Up or Trade 'em Down, but ya gotta Trade em Right to get paid.

View attachment 307083
More...

Jesus easymon, don't get cocky with your man-tits. :-)
 
toli said:
Where's the catch?
More...

Most people can't time the market. Crypto fans usually over hold, than panic sell. Also these futures on cypto are fairly new, I think 3 years old only.

Your average crypto fan would never short their market. And shorting is more dangerous than being long. That is about it...
 
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