• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Stumble Forward

Stumble Forward

Avoid Life's Financial Pitfalls

  • Blog
  • About
  • Contact
  • Resources

3 Tips Every Futures Trader Should Know

January 6, 2021 by Christopher

Photo by Jason Briscoe on Unsplash

Trading futures is complex but has the potential to turn a significant profit.

Whether you’re new to trading, or you’re an experienced trader, it can be easy to fall into bad habits.

Having a strategy can put you in the best position to succeed.

Here are some of the best tips to improve your futures trading strategy.

 

1. Establish A Trade Plan

Plan your trades carefully before you establish a position in the market. This means that you must have a profit objective and an exit plan in case the trade goes against you.

Having a trading plan that has both of these things can help to minimize how often you find yourself in a situation where you need to make decisions when you already have money at risk.

With no trade plan, your emotions could influence you to hang on too long or to exit too soon. An exit strategy could protect you from holding onto large losses or letting large profits go.

Futures trading will always involve risk, so decide on your bailout plan, using resources like Delta Trading Group reviews, before you enter the market. A good plan will let you make trading decisions in a calm, rational manner.

 

2. Protect Your Positions

A lot of traders use mental stops, where they pick a price in their heads when they will close out a position to minimize their losses. However, these stops are easy it ignore, no matter how experienced a trader you are.

Think about trading with stop-loss orders in place. Decide on a bailout point, and set a stop at that pierce. With a One-Triggers-Other order in place, you can have a primary order and protective stop in place at the same time.

When the primary order comes into play, the protective stop will be triggered automatically. This means you don’t have to constantly watch the market or worry about entering your stop order at the right moment.

Remember that stop orders are not a guarantee against losses, as markets can move quickly through them. In most cases, a stop will keep your losses to a manageable level, with no emotion involved.

 

3. Narrow Your Focus, But Not Too Much

Don’t spread yourself thin by trying to follow and trade too many markets. Most traders will have enough to deal with to stay up-to-date with only a few markets. Futures trading takes a lot of time and energy. Even for seasoned traders, the amount of work can be a lot.

If you trade too many markets, you won’t be able to give any of them enough time or attention. Trading in just one market isn’t right either. In the same way that diversifying your stock market portfolio has benefits, diversifying your futures trading does too.

For example, perhaps you expect cocoa prices to decline, but you turn out to be wrong. However, you also suspect gold prices to rise, and this is correct. The gains you make on gold could make up for the loss you made on cocoa.

Related

Filed Under: Investing

About Christopher

Chris is a personal finance blogger with Stumble Forward helping people avoid life's financial mistakes and live a higher quality financial life.

Primary Sidebar

Get To Know Me

Hi, my name is Chris! I’m a personal finance and small business nerd.  Check out my blog where I share all of my favorite tips about saving money to running a small business.

As Seen On…

Top Articles

Categories

  • Business Opportunities
  • Business Tips
  • Careers
  • Consumer Advice
  • Credit
  • Credit Cards
  • Debt Managment
  • Education
  • Financial Independence
  • Food & Cooking
  • Health & Fitness
  • How To Guides
  • Identity Theft
  • Industrial
  • Insurance
  • Investing
  • Law
  • Lifestyle
  • Money Managment
  • Mortgages & Loans
  • Online Business
  • Pets
  • Product Reviews
  • Real Estate
  • Saving Money
  • Scams
  • Tech
  • Travel
  • Uncategorized

Related Blogs

Side Hustle Academy

Wallet Impact

Course Lifestyle

Welders Lab

Footer

Brilliantly

SAFE!

stumbleforward.com

Content & Links

Verified by Sur.ly

2022
  • Blog
  • About
  • Contact
  • Resources

Legal Stuff – Yep We Got That Too

Privacy Policy
Disclaimer for Stumble Forward
FTC Disclosure

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in