Online Futures Trading
The first thing you will hear is that
online futures trading is risky.
Any type of investing or
speculating is risky -- including futures trading.
But there is risk driving
down the street or going shopping.
Everything you do - including
doing nothing - has risk. Bury your money in the back
yard and it is at risk both to gophers and the Federal
Reserve inflation machine.
Don't try avoiding risk
- you can't. What you can do is embrace selected risks
and learn to manage them.
Your first online futures
trading risk management decision is -- get the book Hot
Commodities by Jim Rogers.
The second step is imperative
- don't get greedy. You have to
limit your exposure regardless of the investment market.
It doesn't matter what
market you are speculating in -- the currency or foreign
exchange (forex) markets, commodity futures trading, futures
option trading, and in fact all offline and online
investment markets. If you do not limit your leverage,
correlation, and size - your speculation life span will
be very short.
Be wary of any
futures trading system - they are almost guaranteed not
to work - except to bring revenue to the person selling
the futures trading system.
Here are some key points:
* you can't win if you
do not play
* you can't play if you
don't have chips
* keep your bets small
* keep your losses small
* maximize your profits
- let them run
You do not have to use maximum leverage - you do not have
to keep all your money in play.
If you are considering online
future trading start small after you have read
the book. Don't let a greedy broker shame you into learger
plays. There is a lot of money to be made, and protected,
by playing cautious.
I'll repeat that important
speculation rule - one that particularly applies if you
are considering any form of futures trading:
Always read the book before you make
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