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What distinguishes a successful trader from an unsuccessful trader? Experienced traders will tell you its just that, experience. Experience comes by learning from one's own mistakes in actual trading, but also by learning from others' experiences and mistakes through books, tapes, seminars and research.
3. Liquidate unprofitable positions early.
Trade every position in commodity futures according to a quick delivery of return theory. A position must return a profit (ever so small) after 2-3 days. If it does not, and especially if it is going against you, get out. To do that, use actual stop orders or mental stop orders. We believe you should always use stop orders when you trade futures. Be aware, however, that stop orders do not necessarily limit your losses in all cases.
The time constant of most markets is such that a trend or a trend reversal will probably last for more than several days. Therefore, if the market has been going against you for two consecutive days after establishing your position, chances are you will experience a rough tumble for a much longer time. Realize your mistake (no one is perfect), quickly cut your losses to a manageable size, and look for a fresh opportunity. Always try to learn from your mistakes. When you trade futures and after you complete each trade,write a detailed analysis, explaining what did and did not work.
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Commodities trading, Forex Futures, and CFD are leveraged products and carry a high degree of risk to your capital and it is possible to lose more than your initial investment and account balance. You should only speculate with money that you can afford to lose. These investments may not be suitable for all investors, therefore, please ensure that you fully understand the risks involved and seek independent advice if necessary prior to entering into such transactions.
Please click here for our online futures trading Risk Disclosure Notice
UK tax laws may be subject to change and can differ if you pay tax in any jurisdiction outside the UK. It is therefore advisable to seek independent tax advice.
BBB (Private) Limited is authorised and regulated by the SECP as introducing
futures brokers.
Elite Member of the Chamber of Commerce.
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