Tips for Being Successful in Online Futures Trading
First of all, you must have a futures trading plan; developed in accordance with your financial background and your ability to trade. You must be clear with the amount you can spend on market. Spending lower amounts means minimizing the chance of profit, and also you may be restricted from following appropriate risk management practices. Spending higher amounts can result in high losses in this volatile industry. It is recommended that what ever money you invest as initial capital must not affect your present living standards.
There are 4 "must follow" principles in all type of trading fields. They include trading with the trend, minimizing the losses, letting the profits run and managing the risk. Trading with the trend in a complex process and mostly depends on your style of trading. If you are a day trader or swing trader, you should follow hourly trends, if a long term investor or position trader then weekly or monthly trends. Minimizing the loss mainly involves the stop loss practices, which involves quitting from a trade when market is against you. This is the toughest instinct, as no one want to afford a loss.
Letting the profit run is perhaps the only instinct common to all futures traders. No one wants to quit a trade providing great profits. But remember to quit a trade as soon as you feel a negative trend. The last but the most important principle for beginners is the managing of risk. It is an essential practice for preserving your capital for future profits. Staying away from highly fluctuating markets and trading mini futures and commodities may be useful. Paying attention to surprise reports like natural calamities, crop reports, international relations etc also help. Diversifying trading field may be useful but over doing so will result in greater losses, as you may not control all your investments.
It is always good to begin with simple steps. Trade small future contracts first and then extend your view to others. Monitor national and international trends, experiment little bit, trade on contracts from some selected fields showing study progress and listen to what others are saying. Selecting a brokerage firm and futures trading software are also important as they are the main factors determines your trading ability and profits.
Probably you know that the only principle applicable at the time of Big Bang, the creation of universe, was the Uncertainty principle. The principle is still there and perhaps in trading fields with great power. Remember the world only supports the winners who struggled for their success. It is possible to over come losses of many days with profit of one day.
Related Tags: software, tips, strategies, brokerage, online trading, futures trading, online futures trading
Praveen Ortec works for NobleTrading.com, a leading direct access brokerage firm offering online futures trading and online commodity trading on different platforms.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Sbi Best Sip Plans 2010
SBI Mutual funds have introduced many mutual schemes. Each scheme has different limitations. SBI SIP - Icici Sip Plans 2010 - Best Sip Plans
ICICI Prudential offers many schemes. These fund schemes have SIP. What is SIP? SIP's expansion is S - Determining Where To Invest Money
There are several kinds of investments, also you will find numerous factors to find out where to inv - Retirement Plans A Necessity Of Life
A person works whole life to give a decent upbringing to his children and families. But while improv - Stock Market Timing Signals
Follow the PlanThis would seem a statement of common sense, but the fact of stock market timing sign - A Selection Of Financial And Investment Strategy Guidelines For Turning A Profit
Yet, we don't often have the money to leave work right at this moment. We need a constant salary to - Find Out The Profitable Way To Invest In Small Cap Stocks
Everyone wants to find a penny stocks list or other investment strategies that can turn your literal - Portfolio #4 - Watergate
IntroductionThe problem is not that the world is running out of water. No, the problem is that drink - Dulton Group: Information Content Of Dividends
Dulton Group helps you to analyze the information content of dividends, an important factor affectin - Coping With Fear In A Markets
The real fact is that all traders, investors as well as stock market investors, who feel afraid, occ
Most viewed articles in this category:
- Investor Stress: A New Approach
George Muzea is both an investor and a stock market advisor. In any given month, he will be paid $10 - Real Estate Investment Financing
1. Location: Your real estate investment's location is arguably the most important component of your - Canadian Oil Sands - Who Are the Major Players
The Canadian oil sands represent one of the most lucrative investment opportunities to oil and gas i - Why Bulk Preconstruction?
Bulk preconstruction is the latest trend in secure, high profit real estate investing. By buying wit - Investing - It Is Not As Scary As You Think
Many people want to have more money - OK everyone does. However, most people don't know how to go a - How Do I Know Which Programs Are Scams?
Although it is virtually impossible to tell if a HYIP is a scam until the moment when they stop payi - Currency Trading Success - 6 Tips to Increase your Profits
If you want to increase your profit potential and achieve currency trading success then the simple t - The Business Cycle
Investors who want to beat the market should be followers of the business cycle. The business cycle - Pros and Cons of Real Estate
Like any other profession, there are good and bad things about what are available. Each of the thin - The Fixer Upper
Real estate investing has become almost a national pastime. Millions are made every year on the buyi