A MUST for all futures traders.
Provided by James Mooney, President of Infinity Brokerage Services
E-mail James at
email@example.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
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
9. Don't just trade the volatile contracts.
the risk/reward ratio before putting a trade on, then
guard against holding
it too long.