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Basic Rules for Futures Traders
A MUST for all futures traders.

Provided by James Mooney, President of Infinity Brokerage Services

E-mail James at
info@infinitybrokerage.com
for more information.


1. Follow the trends. This is probably some of the hardest advice for a trader to follow because the personality of the typical futures trader is not "one of the crowd." Futures traders (and futures brokers) are highly individualistic; the markets seem to attract those who are. Very simply, it takes a special kind of person, not "one of the crowd," to earn enough risk capital to get involved in the futures markets. So the typical trader and the typical broker must guard against their natural instincts to be highly individualistic, to buck the trend.

2. Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful futures trading.

3. Use a system, any system, and stick to it.

4. Apply money management techniques to your trading.

5. Do not overtrade.

6. Take a position only when you know where your profit goal is and where you are going to get out if the market goes against you.

7. Trade with the trends, rather than trying to pick tops and bottoms.

8. Don't trade many markets with little capital.

9. Don't just trade the volatile contracts.

10. Calculate the risk/reward ratio before putting a trade on, then
guard against holding it too long.




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CAUTION:

TRADING COMMODITIES, STOCKS AND/OR COMMODITY OR STOCK OPTIONS INVOLVES RISK. MONEY CAN BE LOST AND/OR MADE TRADING ANY SECURITY AND/OR OPTION. PAST PERFORMANCE OF A TRADING SYSTEM OR MARKET IS NOT NECESSARILY INDICATIVE OF THE FUTURE PERFORMANCE OF THAT SAME SYSTEM OR MARKET. MOCK TRADING AND ITS HYPOTHETICAL PERFORMANCE RESULTS ARE INHERENTLY LIMITED AND SHOULD ONLY BE USED AS A LEARNING TOOL AND NOT A MEASURE OF FUTURE PERFORMANCE. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN.


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