Reasons and tips to avoid loosing money.

Some of the most common reasons include:

Lack of experience. Futures trading is a complex and risky endeavor, and it takes time and experience to become successful. Many people who start trading futures do not have the necessary experience, and they end up losing money.

Overtrading. One of the biggest mistakes that traders make is overtrading. Overtrading occurs when a trader enters and exits trades too frequently. This can lead to losses for a number of reasons, including:

Increased transaction costs

Increased risk of emotional trading

Reduced ability to identify trading opportunities

Not using stop-losses. Stop-losses are orders that automatically close a trade if the price moves against the trader's position by a certain amount. Stop-losses are an important risk management tool, and they can help to prevent large losses. However, many traders do not use stop-losses, and this can lead to significant losses.

Using too much leverage. Leverage is a tool that allows traders to control a larger position with a smaller amount of capital. However, leverage can also magnify losses, and this can lead to large losses for traders who use too much leverage.

Not having a trading plan. A trading plan is a set of rules that a trader follows when entering and exiting trades. A trading plan can help to reduce risk and improve profitability. However, many traders do not have a trading plan, and this can lead to losses.

It is important to remember that futures trading is a risky endeavor, and there is no guarantee of profits. However, by avoiding the common mistakes listed above, traders can improve their chances of success.

Here are some additional tips for avoiding losses when trading futures:

Do your research. Before you trade any futures contract, it is important to do your research and understand the underlying asset, the market, and the risks involved.

Start small. It is important to start small when you are first starting out. This will help you to learn the ropes and avoid large losses.

Use a demo account. Many futures brokers offer demo accounts that allow you to trade with virtual money. This is a great way to practice trading without risking any real money.

Get help from a professional. If you are serious about trading futures, it may be helpful to get help from a professional trader or advisor.