Welcome to Futures Trading Guide
Futures Trading Plan Article
This is a selection made from among articles on Futures Trading Plan. For a permanent link to this article, or to bookmark it for future reading, click here.
The Important of Setting Futures Trading Systems
from:
As with any industry and field of study, the person who has the most expertise is the one who will most likely thrive the longest and reap the greatest benefits. This is the same with futures trading.
The trader or investor with the most experience and know-how is the one who is better positioned to take home serious wins, as opposed to the novice trader who banks all his cards on luck.
Start-up traders who just rush into the business without ample knowledge and foresight will not just lose their investment, but will also lose the money spent for initially getting into the trade. Any professional on the futures trading field will say that all will be futile without a systematic plan.
Chances are, without a trading system, the individual who opts to trade might buckle under pressure and end up losing so much more than he should have. As with any business, you must consider not just the resources you hold and how much you are willing to risk, but also the timing of the investment and when each move should be carried out.
Futures trading, therefore, should be met with a business-like approach and with a professional system, and should not be treated as a mere hobby.
To start with, your futures trading system should include answers to the following:
What markets will you be trading in? What are the requirements needs to enter a trade? What are needed to exit a trade with profits? How do you exit a trade with losses? How much money can you afford to risk in the transaction? and What are your capital limits?
Those who start trading without clear answers to the above questions are not likely to succeed in the long term. The absence of a set goal and defined trading system will only make you jump from one market to another, and prevent you from taking up expertise in a certain financial instrument.
In addition, the presence of a system will also protect you from unforeseen events, because you are likely to have already thought of a backup plan in case unfavorable instances occur. To know if the trading system you have mapped out is effective, ask yourself whether most of the decisions you have to make under the plan are based on subjective feelings. If they are so, then it's time you make a change. To avoid getting too emotionally attached to your investment, you must plan your moves objectively and realistically.
Once you have a system in place, you must commit to follow your plan all the way through. Even with a solid system, you are still likely to fold if you don't have the proper discipline to carry it through.
Of course, while we can never discount the contribution of luck to trading wins, you should not bank all your hopes on fate. A good system is what will keep you sane and protected when you're engaging in futures trading.
Remember, while market conditions change sporadically and nobody can really accurately predict where economies go, there are ways to make informed guesses and intelligent forecasts. And because you're dealing with your hard-earned money here, it's better to be safe than sorry.
As a futures trader, you are responsible for own success or failure. Make the journey worthwhile by having a solid system.
Futures Trading Plan News
JPMorgan, CFTC held talks a day after losses revealed
WASHINGTON (Reuters) - JPMorgan Chase & Co officials met with the U.S. futures regulator one day after revealing a $2 billion loss on trades booked in London, according to information from the Commodity Futures Trading Commission. Five JPMorgan officials met with Democratic Commissioner Mark Wetjen to discuss the overseas reach of U.S. swaps reforms, which the banking industry has argued will ...
Read more...JPMorgan lobbied CFTC a day after losses revealed
WASHINGTON (Reuters) - JPMorgan Chase & Co officials met with the U.S. futures regulator one day after revealing a $2 billion loss on trades booked in London, according to information from the Commodity Futures Trading Commission. The five JPMorgan officials visited the CFTC to discuss the overseas reach of U.S. swaps reforms, which the banking industry has argued will put U.S. banks at a ...
Read more...CFTC chief: Agency is reviewing JPMorgan's trading
The head of the Commodity Futures Trading Commission says the agency has begun an investigation into JPMorgan Chase's ill-timed bet on complex financial instruments that led to more than $2 billion in trading losses.
Read more...CME Group Trims Grain-Trading Plan to 21 Hours a Day From 22
CME Group Inc. (CME) , the world’s largest futures exchange, amended a proposal for expanded trading in grains to 21 hours a day after withdrawing an earlier plan for 22 hours that drew complaints from clients.
Read more...DealBook: Citing JPMorgan Loss, Regulator Pushes New Oversight
The Commodity Futures Trading Commission is circulating a preliminary proposal to apply new rules not only to banks in the United States, but also American banks that have foreign units.
Read more...CFTC approves CME's 21-hour grain cycle
CME Group on Friday said it would start nearly around-the-clock grain trading on Sunday night, reasserting itself as the dominant player in markets it created. The Commodity Futures Trading Commission ...
Read more...CME Announces Plan To Expand Grain Futures Trading Hours
CME Announces Plan To Expand Grain Futures Trading Hours
Read more...CFTC commissioner sees no need for review of longer CME hours
Jill Sommers, a commissioner at the Commodity Futures Trading Commission, said on Monday the agency should not institute a 30-day comment period for CME Group's plan to increase grain trading hours.
Read more...