Futures trading tips for futures traders, especially for beginner future traders:
1. Futures Trading System
Futures traders should always trade based on their own futures trading systems. If you don't have any trading systems, keep looking. A way to find futures trading systems is by doing futures trading analysis on daily basis.
2. Stop loss order
Futures traders should always place stop loss order after opening a new position. It should be done no matter how confidence you are with your trade. Always put the risk first then the return afterwards.
Please trade futures contracts carefully, because futures trading is a high risk invest tool. Why? because futures trading use margin to trade. Meaning? futures traders can loss more than what we has invested.
Futures trading systems are very important to be successful in futures trading. Why ? because without any futures trading systems, traders would be distracted by greed and fear. As humans, traders cannot avoid greed and fear, so traders shouldn't avoid them, traders should use them.
How ?
We can use greed and fear to create our own futures trading systems. We use greed and fear as our temporarily futures trading systems. So we trade based on our greed and fear. This will cause us to make many mistakes ( losses). We need those mistakes to do futures trading analysis. Futures Trading Analysis will help us to answer these questions :
which futures contracts to trade
when to buy and sell futures contracts
If we already have the answers, it means we have found our own futures trading systems.
notes :
always trade with small capital when using greed and fear futures trading systems.
always update the futures trading systems
Already have a good futures trading system ? please share how did you find it ?
Please don't do discount futures trading if you only know about the benefit of discount futures trading. Discount futures trading has one main risk, which is unlimited loss. Futures traders sometimes feel that trade futures is cheap, but they forget that it's cheap because they use margin. With margin, futures trader can trade futures beyond their real capital capacity, so once they got a wrong futures trade decision, it would wipe out all their capital. So do we need to avoid discount futures trading ? the answer is no, but there are some points that you must follow, which are
only trade futures based on trading system
always use stop loss every time you open a position
use a good broker
So what do you think about discount futures trading now ?
