Making Over $1k in Single Trade Profits: The Allure and Risks of Trading Stock Indices
Many investors have been paying attention to Chinese companies listed in the US, such as $Alibaba(BABA)$, $NIO Inc.(NIO)$ or $Pinduoduo Inc.(PDD)$. But what if you want to invest in or follow Chinese companies that are not listed overseas?
Last week, someone shared profits of over $1,000. What happened? How did he achieve this?
Let's delve into the details!
Congratulations to @Hopehope赋予希望 for earning $1,027 in futures profits!
$China A50 Index - main 2309(CNmain)$ reflects the performance of the 50 largest companies by market capitalization in the A-share market of China.
Here is an opinion that believes that the FTSE China A50 Index is currently near an important support level, around 12,500 points. If it can hold this position, there is a chance it could rebound to above 13,000 points. If it falls below this level, it may further decline to below 12,000 points.
Stock index futures trading
Futures trading operates nearly 24 hours a day, providing investors with more trading time to make their trading strategies more flexible and diverse.
However, it's important to note that futures leverage is much higher than that of ETFs. Before choosing to invest in stock index futures, make sure to thoroughly understand the specifics of the contracts.
If you are interested in futures trading, here is the specific information:
Futures are contracts that specify the purchase or sale of a certain underlying asset at a predetermined price on a future date. The delivery date and price are determined when the contract is made. The buyer must purchase the underlying asset on the expiration date, and the seller must sell the underlying asset on the expiration date.
Futures trading allows traders to control the value of larger underlying assets with less capital. This leverage effect can increase investment returns but also comes with higher risks. This is why many beginners choose to do day trading in futures, especially short-term trading. The shorter the trading cycle, the relatively safer it is. With high leverage, market fluctuations can be significant, so it's essential to set stop-loss orders and close positions promptly, unlike traditional stock investing.
Of course, while futures trading carries risks, it also offers advantages that the spot stock market cannot replace.
For example, it's an excellent tool for hedging risks. You can go short on the market indices while buying U.S. stocks to protect against sudden market declines. Even if your directional bet goes wrong, the losses may be limited, and your stock holdings can still generate profits. If your market outlook is correct, your futures gains could potentially offset losses in the stock market, resulting in significant overall returns.
🎁Rewards:
Feel free to share your positions in the comment section for a chance to win Tiger Coins!
If you've achieved profits from other potential stocks we don’t know, kindly share your trading strategies in your post, and remember to include the topic "Winning Trades". Hope you'll be the next one to make it onto the leaderboard~
🧭 Share positions:
From your account holdings interface “trade”, then you can click "Share" by each of your stock option holdings to share with the community how much money you have made (or lost) on your investments.
Do not forget to take a screenshot of your positions and post them in the comment sections below.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
@MillionaireTiger
share your position for Tiger Coins guys @Viv22 @LMSunshine @KYHBKO @Tigress02 @Universe宇宙 @koolgal @kungpao @wine18 @cindyft @Xian789
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
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