Seasoned futures traders know that variance is part of the trading nature.Skilled or unskilled, everyone can run hot and cold. If a cold snap continues for a long period, however, it might be time for self-evaluation. Being a good trader means continually assessing progress, and seeking ways to improve. Keep that in mind as you review the five keys to improve as a futures trader.
5 Keys To Success
1) Efficient Risk Management. You must learn how to manage your risk with any futures trading strategy. Take time to reevaluate your protective tactics. Smart use of buy and sell stops, or using hedging strategies such as buying puts, will limit your losses and protect your investments. And while these stops are important tools, nothing is perfect. Be prepared for the possibility that your stop price might not get filled, and manage accordingly.
2) A Trading Psychology. Smart trading relies on maintaining your discipline and emotional distance. To be successful, you must stick with your trading plan while keeping an open mind that allows you to grab onto developing opportunities. Removing emotion from trading is essential for continued success. If you stick to your rules and stay disciplined during turbulent times, you’ll have a distinct advantage over those who can’t manage their emotions.
3) Sharp Trading Skills. A good trader has many tools, and they know how and when to use each one. If there’s any area in which you feel weak, make an effort to improve your knowledge. Ask yourself the following questions to find your best form as a futures trader:
- Are you an independent thinker?
- Do you have strategies to assist you in bullish,bearish, or sideways markets?
- Are you committed to rigorous self-evaluation and continuous learning?
- Do you understand the cognitive biases that can trap a trader?
4) Patience. Never trade simply to trade. Keep in mind that inactivity can sometimes be a good thing. If you’re in a cold spell and trading in multiple markets, consider streamlining your positions. Successful trading requires patience, discipline, and strong knowledge of individual markets.
5) Proper Platforms. A carpenter is only as good as the materials he uses. Traders must use the best platforms to be their best self. A reliable, full-featured futures trading platform provides your best chance of success. Consider one that includes:
- 24/7 trades
- High-end analysis
- A wide range of services that meet trader needs
- Technological tools to spot developing market opportunities
Continue The Path Of Improvement
The best traders are those who continue to raise the bar of improvement.Even traders should be willing to capitalize on any edge or advantage, no matter how small. Trading success takes hard work; commit yourself to doing something each day to achieve your goals. Study the markets, analyze your trades, and learn all you can. As long as you’re prepared to do the work, you can achieve success in trading.
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US LAW requires trading and trading education accompanied to post legal disclaimers as to market and personal performance, as well as investment risk. Please carefully read and study the Legal section of this website and any agreement you sign. Any agreement to doing business with SP500Trader.com website is verification that you have read, understand, and agree to the terms of risk associated with futures trading and financial investing as described.
Important Futures Trading Disclaimer
Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. You must review customer account agreement prior to establishing an account.
Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial. Carefully consider the inherent risks of such an investment in light of your financial condition. Though proper education, tools, and practice are necessary, they do not guarantee profitable results.
SP500Trader.com and the Delta Trading Group, Inc. are educational entities; be sure to consult with your financial advisers, brokers, and other professional services about the risk of trading. Though we offer a common language to learn about trading and risk, we are not a signal service. You must use your own discretion when doing any kind of trading in the any financial market. SP500Trader.com and the Delta Trading Group, Inc. are not responsible for interpretation, opinions, or losses by its members, liaisons, instructors, mentors, vendors, contractors, or administration, as none of these entities can guarantee your success.
Internet Trading Risks
There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software, internet connection, or services provided by third parties. Since SP500Trader.com and the Delta Trading Group, Inc do not control vendor signal power, its reception, or routing via Internet, configuration of your equipment or reliability of its connection. We are not be responsible for communication failures, distortions, or delays when trading via the Internet.
Accuracy of Information
The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. SP500Trader.com and the Delta Trading Group, Inc have taken reasonable measures to ensure the accuracy of the information on the website. The company does not guarantee its accuracy, and disclaims liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, for any delay in, failure of the transmission, or the receipt of any instruction or notifications sent through this website.
This site is not intended for distribution, or use by,any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or investments referred to in this website are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of and comply with any local law or regulation to which they are subject.
Your broker may have a contractual agreement not to seek redress for slippage, it’s obligation to execute stop loss orders at the stop loss price or better, will not apply to limit and stop loss orders during hours when it is closed. This also does not include bad price spikes. Bad price spikes are removed from the price charts quickly to alleviate confusion.