Futures Day Trading For Beginners.

Futures Day Trading For Beginners. - By: Jonathan Colvile, Posted on: 2007-07-08

Day trading used to be the preserve of financial firms and professional investors and speculators. Many day traders are bank or investment firms employees working as specialists in equity investment and fund management. Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance.

Day trading futures market is a difficult to learn process, but the rewards are equally substantial for people who know how to do it. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the Internet.

Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.

Every novice day trader should create a Personal Trading Business Plan covering the basics:

1.) Markets:
Determine what markets you are going to trade; write them down and stick to them.

2.) Trading Hours:
Determine what hours you will be working and write them down.

3.) Entry Strategies & Set-Ups:
Write down your strategies and follow them strictly.
Golden Entry Rules:
a) Never, EVER rush into or chase a trade just because it's moving… Loss of opportunity is preferable to loss of capital!
b) Identify the HIGHEST probability trades, and ignore the others. Remove all stupidity from your game plan - MUST have as many good reasons to enter a trade as possible.
c) Focus on the areas where the patterns are closely and definitively formed.
ALWAYS look for the most obvious market patterns. This Rule Is Very Important.

4.) Additional Tools:
You can use a number of technical tools to add strength to a proposed position.

5.) Exit Strategy:
You must define an exit strategy, write it down and adhere to it - never allow greed to influence you.

6.) Risk/Money Management:
You should be using a strict Stop Loss policy defined before entering a position.
You should be risking no more than 3% of your total trading capital on any one position.
If you experience a loss of 6% of your bank (2 losses) on any particular day, cease trading for the day.

A suggested Pre-Session Routine:
Define the most obvious patterns.
15-Mins Of meditation & mental rehearsal.
Ask myself, 'How do I feel today?'… If the answer is negative, take the day off

Post-Session Routine:
Complete trading records… list any mistakes, observations, things to change etc.

Emotions:

Emotions are difficult to conquer when trading. Here is how you should plan to handle the 5 main emotions:

1.) Fear:
Fear can be overcome by knowing that you have at least 3 good reasons to enter a position. By knowing inside that you have 'done my homework' on a trade, then you have nothing to fear. The market will always do what it is going to do regardless of whether you sit there scared or not! You will put all mental effort in BEFORE opening a position, then sit back and enjoy the ride!

2.) Greed:
You can overcome greed by having a strict policy of not overtrading. You do not need to trade for the sake of it. If the charts aren't telling you anything, then pass up on the opportunity to trade every time, WITHOUT FAIL.

3.) Arrogance:
The market is ALWAYS bigger than you. You must constantly remain humbled by it and NEVER get cocky about your trading abilities. You are not here to impress anyone or have fun… you're here to make money. If you treat the markets and its participants with respect, you too will be treated with respect.

4.) Revenge:
Conquer revenge by trading your plan with DISCIPLINE at all times. Never try to get back at the market for doing something unprecedented; instead, re-group and plan your next trade in exactly the same way as if your previous trade had been a winner. Composure, discipline & self-control will see you through.

5.) Handling Losses:
Losses are part of the game; even the very best traders take losses. Providing you are using money-management rules, losses will not overly affect you.

The business of day trading is one of the simplest, easiest, and most predictable ways to make money.
In fact, if you know how to take advantage of relatively tiny ups and downs in the markets, you can day trade with plenty of confidence – and no anxiety!

But you must have knowledge and discipline.

Article Source:- Directory Submission & Sexy Deepika Padukone

To learn more visit Beginner Day Trading

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