When you trade in futures, you’re entering a sophisticated market where the total wealth of all investors remains constant. Essentially, futures trading is a zero-sum game: every profit made by one trader is matched by an equivalent loss by another. This means the average rate of return for all investors in futures is zero.
However, when you factor in transaction costs, the average return actually dips into negative territory. In this high-stakes environment, there are more losers than winners. Therefore, becoming engrossed in trading options and futures is a risky endeavor, often leading to financial disaster.