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 a speculation.

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