3 Risks of Using a Discount Futures Broker - Cannon Trading

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This Blog provides futures market outlook for different commodities and futures trading markets, mostly stock index futures, as well as support and resistance levels for Crude Oil futures, Gold futures, Euro currency and others. At times the daily trading blog will include educational information about different aspects of commodity and futures trading.

3 Risks of Using a Discount Futures Broker

With the advent of technology, the means to communicate clear objectives, or with any human, drives most people to ignore full-service futures brokers. Why? It is a spirit of independence. Computers have created a superhighway of trading, and accelerated the pace at which commodities, stocks, in short the financial market operates. These various methods have raised barriers between clients and full-service brokers, but given rise to- discount futures brokers. In reality, what the future of the financial markets beckons, is a direct and honest appraisal of the quick and easy model, versus the client and broker relationship. If the “Great Recession” taught us all anything, if you are not vigilant, or the means to track your investment, there is an inherent risk.

Knowledge vs. Education

Brain to Understanding is to hat on a head, both are useful, if absolutely used for maximum benefits to create larger profits to debt losses. Most experienced futures brokers understand the full scope of the financial market, and this long range vision gives insight into the behaviors of certain commodities. Conversely, when opting out of choosing a full-service futures broker, you are presented with limited tools, vision and insight.

Vision, in the entrepreneurial sense, is the act or power of anticipating what will come to be. If you are a newcomer, choosing discount futures brokers, may lead to a lack discernment or experience to sell or buy at appropriate times to gain the maximum profit, while minimizing the loss. This vital quality reigns supreme on experienced traders in the financial sector. However, the key to having a strong vision is insight.

Insight varies to vision, in that you see both near and far and eventually the end result of a business decision. Good judgment plays an integral part in evaluating leverage metrics, whether using gold as a hedge, or evident world events that will signal either a sharp decline or increase in the markets.

Overall, vision and insight, help with the learning curve in the futures market. In addition, being green in this market can cost you a great deal of time and money. Adding vision and insight to your expansive market toolbox can aid in shortening common investment mistakes, with the aid of the seasoned futures broker as your guide. Conversely, selecting a discount futures broker, they may not have the ability to reign in your decision making. Bad decisions – loss of profit. Consequently, bucking traditional wisdom, you could lose larger returns, and run into dangerous investment decisions.

Busy Lifestyle

All investment decisions do not have to end in the loss of a house, or financial ruin in fact, most of the time, this occurs when we are too busy to just stop and evaluate what the markets are communicating to us. Firstly, a missed opportunity is a missed chance to maximize further on our return on investment. However, turning a blind eye because of preoccupations with life is equally as perilous as being an inexperienced trader.

Trading on the futures market is a 24/7 job; with a constant thirst for global information, you can adapt your investment strategies according to your lifestyle. In as much, discount futures brokers are paid low commissions, so there interest, in your personal financial success will not be as keen as a seasoned broker. Most brokers, alert you to changes, or any wrinkles that help leverage your funds to protect you from great losses/gains in the market. When you are comparing your lifestyle, to the market, ask yourself,

  • Can I keep up with the high’s lows on the market?
  • If so, what do I need to know to make sound decisions?
  • If not, what aide do I need to keep on track to possible financial success?

Life happens, nothing is promised to us, so having someone in your corner, to help manage our investment blueprint, can ease your mind, but also save you hundreds, thousands, if not millions. Simply discount futures brokers, mainly hang up phones, while full-service brokers, pick up the phones and guide you.

The Road Ahead

With all the various strategies leveraging, top-down or bottom-up investing, contrarian investing, are just a few methods, long term traders have employed to make a success in the financial market. Over time, these models can become stagnated, which is not intrinsically wrong, however, like technology, financial markets evolve. If we look when the first commodity market opened in 1859, our way of doing business is bolder, faster, and at times smarter approach.

Today, youth is an advantage, but a stalwart trader can sharpen and enhance acquired skills subjecting your longevity to a discount futures broker, could hamper your overall development as a trader. All in all, master vision and insight, stay active, and look forward, but when it comes to your assets, always take the long road, the risks are high  but the future can be bright.

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.


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