According to a 2010 study published by the University of California, 80 percent of short-term traders new to the market quit within two years. In financial circles, the general consensus estimates that 95 percent eventually opt for an early exit from the market. No matter which statistic is closer to the truth, probability appears to… Read more.
Tips & Strategies
Using funds salted away in an IRA is a time-tested futures trading strategy that may enhance your returns, although it’s by no means a riskless approach. Investing IRA funds in the world of futures — from commodities to stock indices to financial instruments — can be a smart way to add a solid new branch… Read more.
Perhaps the most dreaded phrase in any trader or investor’s vocabulary is “margin call.” Margin calls are a broker’s request for the deposit of additional funds to bring the trading account above the initial or maintenance margin. Whether you’re trading equities, currencies or futures products, receiving a margin call is never a good thing.
The futures markets are dynamic atmospheres where business is conducted at near light speeds. To succeed in this hypercompetitive arena, low latency trading is critical to engage the marketplace with maximum efficiency. As anyone that has traded futures can attest to, abrupt and swift pricing fluctuations are commonplace. In order to stay on the lead… Read more.
By nature, the American futures market is inherently risky. Money is at stake each and every time a position is opened in the market. No matter if you’re an institutional player or an independent retail trader, capital preservation is an integral aspect of successful trading.
In comparison to other securities, futures products are notorious for wild, periodic swings in pricing. The reputation is well earned, as history has shown us many examples of the herd mentality leading to chaotic, panic-driven buying and selling. Irrational price action has plagued live futures trading markets of everything from livestock to crude oil at… Read more.
When it comes to entering and exiting the futures markets efficiently, traders can implement a variety of strategies. Some of the most common strategies involve the use of stop limit and stop market orders. These two orders are very different from the other, but traders can apply both to limit the impact of sparse liquidity… Read more.
In the contemporary financial environment, becoming a futures trader is relatively simple. All a trader needs is a computer, internet connection, and some risk capital. Of course, engaging the futures markets successfully is another matter altogether.
The futures markets are fast-paced, highly competitive environments. It’s common for individuals new to the arena to be intimidated by the complexities of the business. From learning the nomenclature of the industry to efficiently implementing advanced technology, becoming a competent futures trader can be a formidable task.
The human element is often the factor that determines whether a trader achieves success in the marketplace. Unless you recognize the many challenges that our ingrained psychology throws at us, interacting with the markets in a consistent and profitable manner can prove difficult.