high yield investments

Trading futures can be the best high yield investment you’ll ever find, but trading futures with very little experience on your own or without a good strategy or an untested strategy is like an unprepared soldier running into battle with a rifle and thinking “hey I have a rifle, I’ll be ok as long as no one shoots me”. This sounds like a ridiculous analogy and you’d think it to be obvious but this is what new traders do on a routine basis, and it’s setting them up for inevitable disaster. Futures have been regarded as one of the highest risk investments in existence for a long time, and understandably so with nearly 95% of newbie traders taking there first trades and then losing almost all of their original investment within the first 6 months of trading. So with that said let me ask you this: If investing in futures only caused people to lose then why would there be anybody investing in them at all? This is obviously because the other 5% makes money and lots of it! So now you might be thinking aren’t those 5% making money at the expense of the losing 95%? This is true in partial. But it mostly has nothing to do with the other 95%; they just bring more buyers and sellers into the market while adding more liquidity allowing for every investor to get out of the market without moving it too much. This is similar to a situation where a house would have numerous offers on it then having a market with plenty of buyers and sellers simultaneously. Most of the movement in the Futures market consists of hedgers and fundamentals that cause most of the hedgers or speculators to buy or sell; new speculators are a small part of the big picture.