Saturday, February 1, 2014

Managing your money when trading

 Managing your money when trading stocks or futures is the key to preserving your capitol. You need to get a good education on futures trading before you risk your money on futures trades. You need to develop your chart reading skills and learn when to place a trade. Seek out traders that have been successful and learn and develop a trading style from them. Most traders lose all their money because they did not learn a good trading style and just started to trade futures without any trading education.
  If you are just speculation on your stock or futures trades you will lose your money in a short period of time. The markets will take you money if you are not prepared which happens to most new traders. It is not easy money to be made but money to be lost if you try and trade without some knowledge of the futures markets. New futures traders accounts are opened everyday by inexperienced traders and they lose all their money in a day or so without trading experience and education. Trading futures takes education and learning to understand how the futures markets work. You need to learn the ins and outs before you ever make a trade.
  Once you have learned and done some study on futures you need to work on being a disciplined trader and stick with what you learned. Make sure to set up some rules and write them down in a ledger to follow when you start to make stock or futures trades. Decide what type of trader you will be. Are you going to swing trader ,long term trader ,or be a daytrader.