Futures traders use two types of stop losses when they trade: mental stops and physical stops. It’s important to understand the difference between the two and figure out how and when to use them. The purpose of a stop loss is to limit your trade losses. When traders set a stop loss, they are determining the specific price at which they will sell to limit their loss — in other words, their exit strategy. (more…)

Successful futures traders have learned that there are times with NOT trading is the most successful strategy. Achieving success as a futures trader is 90% mental preparation. If you are not mentally prepared, do NOT trade. It can be dangerous and financially disastrous to trade if you are distracted, angry, worried, scared or emotionally distraught. Just as physical illness, tiredness or pain prevent you from focusing on your trading, so does emotional distress. You must have your head in the game every second to succeed as a futures trader. (more…)