To succeed in futures trading, several vital inputs are needed to engage the market from a position of strength. Mental acuity, risk capital, technology, and a positive mindset top the list. However, without the services of a competent brokerage firm, it’s unlikely that you will reach your potential as a trader.
In this article, we’ll examine the benefits of developing a solid, ongoing relationship with an experienced and knowledgeable futures broker.
Benefits of Building a Strong Broker-Client Relationship
When it comes to active futures trading, brokerage services directly impact performance. Functional tasks such as order routing and trade execution are crucial to a trader’s profitability. In addition, having robust market access via an advanced technological infrastructure is key to staying competitive in the marketplace. Given the essential nature of these duties, many traders frequently overlook one other very important item: the broker-client relationship.
Unfortunately for the average retail trader, it can be a challenge determining exactly how a brokerage firm treats its clients. Million-dollar account balances typically lead to a higher degree of customer service, but if your balance isn’t that high, you want to be sure that your broker will answer the phone when you need assistance.
The answer to this question lies in how the broker views the broker-client relationship. Strong brokerage services believe that futures trading is an evolving partnership between the broker and trader, the ultimate purpose of which is to achieve long-run profitability. To reinforce this philosophy, its brokers are accessible, promote a two-way dialogue, and are well-versed in multiple analytics.
One of the key elements of trader development is asking questions. If you don’t understand something, ask! A broker can help you improve your performance by simply passing on pertinent information in a timely fashion.
Futures trading concepts such as spreads, volatility, order flow, and pricing are complex in nature, so being able to pick your broker’s brain when needed is an asset best not discounted.
Unless you’re operating in a 100 percent self-directed capacity, participating in an open dialogue with your broker is extremely beneficial. A broker can point out key trade-related elements that you may have missed or inherent flaws in your strategy.
It’s important to understand that countless perspectives play into the market dynamic at any one time. For every buyer there is a seller, so staying abreast of a position’s counterarguments is a valuable part of trader development. Although not all opinions are correct, there is value in a diversity of perspectives.
Becoming fluent in fundamental or technical analysis requires time, effort, and dedication. Fortunately, an experienced broker understands exactly what it takes to become a sophisticated strategist. In this regard, a broker provides a wealth of knowledge and a great resource for boosting your trading IQ.
Successful futures trading boils down to applying a viable strategy consistently over time. The guiding tenet of any solid strategy is its analytical methodology―a good broker can help you choose one that is suitable for your resources and goals.
Are You Ready to Take Your Futures Trading to the Next Level?
If you’re new to the markets or having trouble joining the ranks of winning traders, maybe it’s time for an honest conversation with a market pro. The brokerage team at Daniels Trading has an abundance of knowledge, built from decades of experience in markets. Rest assured that if a Daniels Trading broker hasn’t seen it, they know someone who has!
To learn how you can begin building a lasting relationship with a futures veteran, schedule your no-risk one-on-one conversation with a licensed Daniels Trading broker today.