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Top 50 Futures Trading Rules
Five hundred experienced futures brokers
were asked what caused most futures traders
to lose money. Their answers reflected the
trading experience of more than 10,000
futures traders.
You may recognize some of your strengths and
weaknesses. Many of the reasons given are
very similar from broker to broker. The
repetitions stand to demonstrate that, alas,
many futures traders lose money for many of
the same reasons.
Perhaps the statements of these experienced
brokers can help you in the sometimes
fickle, often intricate, and always
interesting marketplace of futures trading.
Here is what they said:
1. Many futures traders trade without a
plan. They do not define specific risk and
profit objectives before trading. Even if
they establish a plan, they "second
guess" it and don't stick to it,
particularly if the trade is a loss.
Consequently, they overtrade and use their
equity to the limit (are undercapitalized),
which puts them in a squeeze and forces them
to liquidate positions. Usually, they
liquidate the good trades and keep the bad
ones.
2. Many traders don't realize the news they
hear and read has, in many cases, already
been discounted by the market.
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A.
Opportunities and risks in futures
trading
B. Hedging
techniques
C. Ins and outs
of trading commodity futures options
D. Day-trading
strategies.
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Trade with a leader in futures and
commodities trading, located in Beverly
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Good trading and we look forward to
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