Have you ever wanted to learn how to make money on the futures market.
It is a rather high risk, high reward environment, however if you know what you are doing you can make a boat load of money, even earn a living from trading the futures market.
Before getting your feet wet you must first understand the hidden secrets that are lurking beneath the murky surface.
Too many times do you see newbies jump right in to trading futures without first realising what the hidden catches are.
There are some hidden catches, but once you know how to use them to your advantage then you will be able to take consistent profits from the futures market again and again.
Here are 7 of the most important tips on how to make money in the futures market today.
1.
Don't try the futures market if you have no money.
A lot of people get the idea that making money on the futures exchange is easy and they go ahead and put big amounts on that they cannot afford to lose.
That is a big NO NO.
2.
Do not try some gimmick or secret you read in a book.
The quickest way to lose money on the futures market is to go out and try one of the secrets you heard from a friend or read in a book.
These are just rumours and mostly do not work.
If you are going to test a certain strategy, ensure you do it low key and with small amounts of money before going all out.
Small tests will help you see consistent results.
You will not make lots of money but the risks are small and you will not lose your entire account in case things go against you.
3.
Think short term and long term.
Do not try to figure out what is going to happen in the futures market in the next 2 hours.
Yes this can make you money, but there are a lot of successful traders that are making money long term in futures also.
They do not care about the day to day fluctuations, or what happens every minute of every day.
4.
Do not over experiment.
There is such a thing as trying to hard on the futures exchange.
Normally the good traders will find something that works, and then keep trying to make the system and strategy work better.
Just realise there is no holy grail to trading.
There is no system that is going to make you money 100% of the time.
Accept you will take small losses, and find a system that works consistently and stick to it.
Keep it close to you and use it as your weapon against the market.
5.
Use a professional trading platform.
There are many good platforms you can use to trade futures.
But there is a darker side to trading futures, where many broking houses offer buggy platforms, that are worse than second rate.
Just do you homework first and find out what the top brokers are recommending.
These platforms normally perform the best and keep clients happy.
When it is your money at risk you want to ensure you have safety and reliability on your side.
Otherwise there can be drastic consequences.
6.
Be aware what is happening out there in the economy.
After the global financial crisis some countries are doing very poorly, and there is currently some currencies issues.
It might be worth your time to find out how the economy is doing in your area of the world.
If things are not looking good it is better to save money to buy daily items before you go risking it all on the futures market.
7.
Use a proven stop loss management system.
This is the number one reason why many traders out there fail.
They throw money into the futures market without even contemplating what their plan is if things go against them.
Things will not go according to plan 100% of the time.
Taking losses are a part of the game, and more like a business expense for professional traders.
Just accept it and always exit a position if it goes against you.
It is hard to admit your are wrong, but just accept it and get out the trade.
That will ensure you have money for the next trade that presents itself.