Keys to Becoming a Successful Futures Trader
There are a number of qualities that define a successful futures trader — the keys to success.
- Discipline. Discipline is the primary key to successful futures trading. You must have the discipline to learn your system, study it daily and tweak it to perfection. You must have the discipline to keep a trading log that records your trades, as well as the market conditions, thought processes and external influences that affected each trade. Without such a log, you are doomed to repeat your mistakes, rather than learning from them. You must have the discipline to do your homework, to study and keep up with the market, to keep your system current.
- Patience. You must be patient if your trading system is to be effective. By trading too soon, you negate the value of your trading system. You must exercise patience and give your system time to work.
- Loss. Loss is part of the trading game. You must be able to take losses in stride and get right back in the game. When your system dictates that a loss be taken, you must have the discipline to follow your system, take the loss quickly, minimize the damage and move on.
- Perseverance. There are no overnight success stories in futures trading. Success is a matter of building experience, working and perfecting your system, minimizing losses, and capitalizing on small gains. Success, particularly at the beginning, is more often a series of small steps than giant leaps.
- Confidence. Above all, a futures trader must have confidence in himself. You must have confidence in your system and your ability to work your system — to pull the trigger. Futures trading is a game of risk. You can’t be afraid to act. You must have confidence in your ability to read your system and act. Those who hesitate are doomed to lose in the futures trading game.
- Flexibility. The market and market forces are ever-changing. You must have the flexibility to change with the times, to make changes to your system so it remains viable and in tune with current market conditions.
Print This Post
Email This Post
Tags: Bill McCready, futures market, futures trader, futures trading, futures trading advice, futures trading secrets, pulling the trigger, trader mindset
Back to Top
July 4th, 2008 at 11:42 am
Very Good rules!
Discipline, Patience, and Confidence are the most important.
I thought 4 hours a day with weekends off, I can get on my boat when the market is closed, or fly to New York for dinner. The boat is dry and I find myself grabbing a quick meal here and there. The real work starts when the markets close. If you skimp on your homework your account will start to fall off!
Confidence and patience go hand and hand. There should be no fear unless you are trading with limited funds! If you are trading with a small account you shouldn’t be out there.
I will often place a mental stop. Once my target price is met I place my trade and give the market some room to run against my trade. If the market hits my mental stop I usually get out with a small loss. Sometimes I let it run another 5 points, but only when I have recently made profits. I like to loose money because it will ALWAYS show me something I didn’t see before. The key is not to loose money on a previously made mistake!