Investment Strategy and Risk Management: Improving Investor Profitability in Futures Trading

摘要

This study aims to examine the influence of investment strategy and risk management over futures trading and investor profitability. This research is predictive and uses a quantitative method. Data were analyzed using Structural Equation Modeling (SEM) and Partial Least Square (PLS) optimization with Smart PLS 3.2.7. This study uses investment strategies and risk management as independent variables, while futures trading and investor profitability as dependent variables. The result of this study indicated that investment strategy and risk management are both influence futures trading, investment strategy also influences investor profitability, and futures trading influence significantly investor profitability with the T-test value of more than 1.96. However, risk management has no significant effect on investor profitability with a T-test value of less than 1.96.