1. Top 50 Trading Rules: The Most Common Pitfalls To Avoid When Trading Commodity Futures
Five hundred experienced futures brokers were asked what caused most futures traders to lose money. Their answers reflected the trading experience of more than 10,000 futures traders.
You may recognize some of your strengths and weaknesses. Many of the reasons given
are very similar from broker to broker. The repetitions stand to demonstrate that, alas, many futures traders lose money for many of the same reasons.
Perhaps the statements of these experienced brokers can help you in the sometimes
fickle, often intricate, and always interesting marketplace of futures trading.
Here is what they said.
1. Many futures traders trade without a plan. They do not define specific risk and profit
objectives before trading. Even if they establish a plan, they "second guess" it and
don't stick to it, particularly if the trade is a loss. Consequently, they overtrade and
use their equity to the limit (are undercapitalized), which puts them in a squeeze and
forces them to liquidate positions. Usually, they liquidate the good trades and keep
the bad ones.
2. Many traders don't realize the news they hear and read has, in many cases, already
been discounted by the market. Download the PDF and find out what they said.
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2. Hot Market: The Gold Market Has Caught Fire Late This Week
Disclaimer: This calendar is compiled from
sources believed to be reliable. Moore Research Center, Inc.
assumes no responsibility for any errors or omissions. It is meant
as an alert to events that may affect trading strategies and is not
necessarily complete. The release dates for certain economic
reports may have been rescheduled.
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.