Last year proved to be a historic year in the markets. In 2018, budding U.S.-China trade war, an active Federal Reserve, and a Black Swan event in natural gas gave market participants an abundance of food for thought. At times, even the best futures broker had to chalk up a loss as a hard lesson learned.
When it comes to active trading, knowledge typically costs money. Whether it’s in the form of lost capital or pay-for-play tutelage, gaining an education in the markets can be an expensive endeavor. However, it doesn’t always have to be. Our brokers are eager to pass along a few pearls of wisdom from 2018, free of charge!
Being the Best Futures Broker Is Hard Work!
A broker’s work is rarely done. Market research, trade execution, and servicing the needs of clients is a 25-hour-a-day job. Being the best futures broker isn’t for the faint of heart ― it’s an exercise in dedication.
At times during 2018, the futures markets appeared to have a mind all of their own. The team at Daniels Trading fell back on a wealth of industry-specific experience to successfully navigate the turbulent waters. In doing so, we learned a lot about what it takes to excel in the current futures trading environment. Here are three key takeaways from 2018:
- Jake Swart: “The top lesson I learned in 2018 is to stick to your trading/marketing plan. A structured plan is a key to any successful trader/marketer. Sticking to the plan is what separates those who have success in the markets from those who do not.”
- Jace Jarboe: “My Top lesson for 2018 is to not get too greedy with one specific trade. Instead of always trailing a stop on a profitable trade, do the opposite and take profits.”
- John Payne: “During my 11 years in the business, each has brought an event that causes price action so great I can do little but shake my head in disbelief. In 2018 it was the spike in natural gas. The lesson learned was a stark reminder that #1 anything can happen and #2 long-term short option strategies work until they don’t.”
Stick to your plan. Don’t be greedy. Be ready for anything. These three themes are always in the mind of the best futures brokers. Here are a few more gems from our market professionals:
- Andrew Pawielski: “Always remember it’s not the money you make, it’s the money you don’t lose.”
- Kirk Donsbach: “The tops and bottoms of market cycles can be very emotional. When everyone else is scared, be brave; and when everyone is getting brave, start to worry.”
- Tony Kasathsko: “Remember, you want bigger winning trades than losing trades. The goal is to make money, not to win all the time.”
- Alec Torrey: “If you follow a program that sends out trade recommendations, then you have to stick with it. You can’t pick certain trades or get out of the market when it isn’t headed the way you want.”
Take it from our group of industry veterans, there are a million pitfalls that lead to traders losing money. However, given the proper patience, discipline, and the best futures broker in your corner, success is attainable.
For more information on what the team at Daniels Trading learned during 2018, check out the free e-book Futures Trading Outlook For 2019. It provides expert insights into what drove the markets in 2018, as well as predictions for the coming year. If you’re going to trade futures in 2019, reading this e-book is a must!