General Futures Trading Tips

Posted by Deb | | Tuesday 22 June 2010 6:20 pm

Though I am not yet an experienced trader, I think I can write already some general tips I find important when trading futures.  So, here it goes:

Starting Tips:

  1. Before trading, make sure to take a good course and learn how to do it.  Trading is a kind of profession, not a game.  If you don’t want to lose, find a course or a mentor who will give you the basics:  How to understand the market, some useful indicators, etc.
  2. Before trading on actual money, try a demo.  There are a lot of trading demos you can choose from.  Sometimes you will have to open an actual account in order to get the demo, but it is worth it.  Trade till you are confident enough.  Take you time:  it can take a few months or even a year.  Don’t skip this stage.
  3. When you decide to start trading, go slowly.  In the first few days make sure you are making profit, even if it is a small one.  Then gradually upgrade your expectations.

 

Trading Tips:

  1. Decide about your strategy:  What indicators will you use, when will you decide to enter or position or exit, how many contracts will you use.  Be disciplined: Stick to your program!
  2. Give yourself limits:  Decide what is the maximum no. of positions your allow yourself, the profit you expect for each day, the maximum loss you can take for a day.  When your trading meets one of these limits, stop!  You had enough for the day.  Don’t be too greedy.
  3. Don’t enter a position without fixing a stop loss.  Find a good point for your stop loss, and don’t forget to put it.  Fix the point of stop loss according to the market.  If your budget isn’t enough for this stop loss, don’t enter a position.  Putting your stop loss too close is setting yourself for losing.
  4. Learn from your mistakes:  If you had lost, look for what you have done wrong and mark it down for the future.
  5. Be optimistic:  Don’t trade if you have a feeling you are going to loose.




Good Luck!


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5 Comments »

  1. Pingback by Money Management in Day Trading — August 12, 2010 @ 9:55 pm

    [...] General Futures Trading Tips [...]

  2. Comment by Lead Tips — February 16, 2011 @ 2:01 pm

    Thank you for share.

  3. Comment by Timothy from frasi famose — July 16, 2012 @ 1:27 pm

    Have you ever considered about adding a little bit more than just your articles?
    I mean, what you say is important and everything.

    However just imagine if you added some great pictures or videos
    to give your posts more, “pop”! Your content is excellent but with images and video clips, this website could undeniably be one of the greatest in its field. Awesome blog!
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  4. Comment by Deb — July 20, 2012 @ 12:45 am

    Thank you. That is an interesting suggestion. I will have to look for more pictures to accompany the articles here.

  5. Comment by Elida from forex software — October 3, 2012 @ 1:31 pm

    Nice post. I was checking constantly this blog and I am impressed!
    Extremely useful information specifically the last part :) I care for such info much.
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