|
No $25,000 minimum requirement like you have in Equities when you
trade futures. Plenty of leverage, low margin requirements, cheap
commissions are charges by most futures brokers. Most major Futures
markets and brokers have close to round the clock electronic trading
especially in different parts of the world. Low risk if you use
protective stop orders strong liquidity, huge volume can be seen in
global futures markets. There is a small risk with big gaps with index
and Dow futures. Commodity Futures are often a leading indicator
during significant turns in the market cycle. They can help give the
future trader a strong edge when attaining a low risk high reward
entry into the future market.
They can also offer an important warning sign before a major market
decline.
Twenty four hour electronic Equity Index Futures markets, like the S&P
Futures, offer the stock trader a huge advantage by being able to
analyze
overnight turning points for the next day's market turning points.
Treasury Bond Futures have a strong impact on Stock price direction.
Knowing how to properly analyze the Treasury Bond Futures offers the
stock trader a significant advantage whether you are a short or longer
term trader.
Once the trader has the ability to understand supply and demand levels
on a chart, which is the key to knowing where the
market will turn, before it turns, then the trader can do this in the
Treasury Bond Futures. These Futures markets are the free market for
interest rates. So, knowing where turning points are in these markets
means knowing where interest rates are going to change direction. This
is crucial information for all serious traders.
Learning and watching trend lines can be very helpful in your
trading, as long as you use them correctly. Adjusting your reason for
being in a trade be it a trendline, supply demand zone, to give the
trade just a little bit more wiggle room is a trading mistake. This is
why the futures trader must use stop losses when you are trading. Some
experiences may actually be counter productive in the positive
evolution of a trader. One example is when a trader practices what is
known in the business as "averaging down. This is another new trader
mistake. As the trade moves against the trader, he adds to the
position. This is where a trader enters a trade and immediately finds
himself losing more money. That's the day of reckoning that some
traders take a long time to recover from. Most successful traders know
not to do this and use proper stop losses.
In similar fashion, when a trader is starting into the markets
ends up making a big winning trade, the illusion that it is
easy to make money trading is cemented early. This false notion that
making consistent profits without a strategy or discipline will only
serve
to cause major frustration when their trading account is out of money. |
