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Tips for Successful Futures Trading


People who involved in managed futures are always looking for better ways to do things, become more efficient, and ultimately more successful. There are many helpful suggestions online and in books.

A common suggestion is to switch brokers if you are not happy with your current broker. Do not wait for something major to happen, switch immediately.

It is your money and you cannot blame the broker for messing up if you did not like him or her and you did not switch your money to another broker. You do not have to switch firms, but it is important to call the branch manager and ask for your account to be switched from your current broker to a new one.

Most branch managers will listen to your complaints and be able to make a better broker match to your account. You may want to consider asking if it is alright to talk many different brokers in order to select a new one.

If your broker makes a mistake that loses your money, it is likely you will be displeased with him. However, if you have a little extra money you can start over with a new broker if desired.

Since the time of your first engagement in the market it is likely that the market has changed and you can select a new, better area to work with. At least, as long as you still like the trade’s possibilities.

Another helpful suggestion is to learn how to be patient when there is a successful trade going. This can be extremely difficult because you do not want to wait too long and find out you suddenly lost everything you earned.

The most successful method in relation to managed futures is to remember that they are long term investments. The biggest mistake many investors make is that they liquidate a profitable future when they are scared by a small set back.

After the setback, the future continues to profit. A major characteristic of the markets is that they change and fluctuate.

It is very normal for them to temporarily dip down on a generally climbing line. It is also normal for it to continue going down.

However, if you pull your support too soon, you will risk a lot without earning anything. By sticking it out, investors are more likely to have a lower win/loss ratio.

In addition, immediately reversing your position is generally a mistake if taken over a long series of trades. This is the opposite of what is usually passed around the markets world.

While this may not be harmful to you or your investment in the beginning, this action usually leads to trading habits that will lead to your ultimate loss. While reversing your position can work on occasion, the odds are against it.

It is a much better idea to exit properly, and then reevaluate the situation. If you still decide you want to reverse and go short wait for a while.

Do not wait thirty seconds and call it good. Wait until the next small rally, even if it is less than the favorable price.

It is a good policy to engrain waiting for the next opportunity as a habit that you follow religiously. In addition, it is a very good habit to keep a trading log and read it.

If you do not review your trading log, you will never learn anything from your past mistakes. Be sure to keep track of more than the numbers.

Write down why you made the decision you did. As you review the log, write down what you think went wrong or right.

Note things of particular interest in a master log. Then, review those entries monthly, no matter how many there are.

Even if you feel like you know everything in the book, review it. It is very unlikely that you remember everything written in your master log.

As you follow these tips you will be able to find more success in the field of futures trading.

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