The Seven Top Secrets To Trading Futures Successfully
submitted: Aug 3rd 2008 |
by: JamesJ.Dehoiver |
Total views: 1 |
Word Count: 504 |
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The most successful floor traders are those that have the most experiance, this is no coincidence at all and should be a pointer for those who aspire to become a good trader. Trading can be likened to being a sportsman, such as a golf pro or tennis champion, you need to be trained and in good physical shape. Skills are needed which must be developed over time and practiced until they become 2nd nature. Here are some of the key skills that you must develop as a trader.
1. Technical analysis can be used for futures as well as the more standard stocks, options and bonds that most people trade. This can give you a large edge over other traders who have not taken the time to study the charts support and resistence areas, trendline and patterns. learning technical analysis is really a must do if you want to trade futures successfully.
2. This is a very basic point but is very important, always have your trading plan prepared before you enter a trade, never try and create it on the fly, you will be musch too emotional. make sure that you have both an entry and exit point in your plan.
3. Ask any experianced trader who makes money every month and they will tell you the number one secret of trading is to keep your losses small. Amateurs take a long time to learn this. By doing this your small losses will cancel your small wins and you will be left with your big wins which is how you will make money over time.
4. Over trading is a big mistake that a lot of amateurs make. Professionals tend to be more patient and wait for the better opportunities to come along, this is called cherry picking and takes both patience and discipline. These are essential skills that you must develop.
5. Keep both a daily and weekly log of all your trades. It is essential that you follow up with all your trades, both good and bad, to learn what your mistakes were. To become a very good trader it is simply a case of eliminating all your mistakes. This does not mean that you don't have loses but it means that you followed your trading plan and kept your losses small.
6. Prepare for each trading day by getting a good nights sleep. In the morning before the market opens review your rules, charts and trading plan. You must be focused on the plan and not get distracted by other things that maybe going on in your life. Make sure that you are mentality prepared for the trading day ahead by being confident in both your self and your trading plan and rules.
7. If you are new to trading futures take the time to paper trade until you are very confident that you are going to make money. You will know when you are ready because you will start to hate paper trading knowing that you could be making real cash profits on a consistent basis.
About the Author
James J. Dehoiver is an expert stock, options, forex and futures trader and teachs online futures trading systems. Download a free advanced futures options trading ebook instantly from his site.
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