Trade Futures Successfully Using These Seven Trading Secrets

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by James J. Dehoiver

It is no coincidence that the most successful floor traders are in general those with the most experience. This is because I believe that trading is essential a skill based activity which requires both practice and experience. There are many similarities between very competitive skill based sports, like golf or tennis, and trading. Here are 7 of the key skills that you must develop as a trader.

1. Technical analysis can be used for futures as well as the more standard stocks, options and bonds that most people trade. This can give you a large edge over other traders who have not taken the time to study the charts support and resistence areas, trendline and patterns. learning technical analysis is really a must do if you want to trade futures successfully.

2. It goes without saying that you must have a trading plan before you even think about entering a real trade. The trading plan must contain both entry and exit points, and a stop loss.

3. Keep your losses small!, this is the one thing that every trader must do if they want to stay in the game for a long time. By doing this you will preserve your capital allowing you to trade another day. Your small wins will compensate your small losses allowing your big wins to give you an overall profit

4. Don’t over trade, this another big mistake that amateurs make. The pros are more patient and cherry pick only the best trades when the probabilities are on their side. This takes patience and discipline. These are two of the essential skills that you must develop in your game.

5. Keep both a daily and weekly log of all your trades. It is essential that you follow up with all your trades, both good and bad, to learn what your mistakes were. To become a very good trader it is simply a case of eliminating all your mistakes. This does not mean that you don’t have loses but it means that you followed your trading plan and kept your losses small.

6. Only trade when you are both physically and mentally prepared. This is often overlooked but is very important. Do you think a tennis star can win a game when they are tired and mentally not focused?, it’s unlikely. Being prepared means getting a good nights sleep, having your trading station and charts well prepared before the market opens, taking the time each and every day to review your trading plan and rules. Finally you must have the mental frame of mind and confidence that you are going to be successful today in your trading.

7. Before using your hard earned cash in real trades make sure that you have done sufficient paper trades to give you confidence in your trading system. Paper trade until it becomes boringly successful, then you know that you are ready to use real money.

About the Author:

James J. Dehoiver is an experianced stock, options, forex and futures trader and teachs online futures trading systems. Download a free advanced futures options trading ebook from his website today.