What are futures? Futures contracts are a type of derivative contract agreement to buy or sell a specific commodity or security at a set future date for a set price. Futures contracts, or simply "futures," are traded on exchanges like the Chicago Board of Trade (CBOT) or Chicago Mercantile Exchange (CME Group) and require a brokerage account that’s approved to trade futures. Futures include currencies, energies, financials, grains, indices, meats, metals, and softs. According to some experienced traders, 3 easily forgettable, but Major tips to keep in mind when trading futures include: - Cutting your losses - The TREND is your friend - Remember the COST of trading Cut your losses If they are being honest, one of the most common experiences among traders is taking the loss. Some of us remember those moments. You might even remember hanging in there as you find other reasons inconsistent with your strategies, to hold onto your positions, as you watch the value continue to fall. Before going into a position, always remember your tolerance. How much you are willing to lose on that specific trade. If the market moves against your positions, strongly consider cutting your losses and take that small loss. One of a soldier’s goal is to live to fight another day, The TREND is your friend If there is one thing that separates experienced traders from beginners, is the ability to identify trends and capitalize on them. Although commodities prices are less predictable and different from stocks in terms of volatility, futures markets have trends. Fundamental and technical traders can identify trends after adequate research and analysis of either charts, or news and research materials. Identifying the trend increases your chances of jumping on the right side of a trade. Nevertheless, there is always that risk of loss if the trend suddenly changes. In which case, remember to cut your losses. Some beginners use a Demo or simulated trading account to learn and get comfortable identifying trends and testing the potential outcome of a real investment. Of course it goes without saying. Past performances does not indicate future results. Remember the cost of trading As a trader works through the trenches and actions of analyzing, deciding, pondering, pacing, second guessing decisions, celebrating wins and learning from losses; it’s very easy to forget about the cost of trading and the impact it has on you P&L. The cost of expenses, like commission& fees, subscriptions to news and research materials, 3rd party software and other expenses, can add up and either reduce the profit you are already celebrating, or increase your loss, making the experience even worse. Some traders use traditional brokers, while others use discount online broker services. With discount online brokers, traders perform their own research and analysis and basically call their own shots with the click of a mouse or tap on that app. Although the trader does most of the decision making with less personalized advice, the cost of trading with discount online brokers is much less expensive with commission rates less than $5. With the calculation of the full cost in commission and fees, the trader can easily determine how many ticks the market needs to move towards their direction to break even, before celebrating. Or in the case of a loss, number of ticks to breakeven plus ticks lost to the opposite direction PitBaseis a discount online broker that offers free demo/simulated accounts, platforms, quotes, advanced charts, research material and many more!!. Feel free to check us out. Of course, we appreciate your business Please note that there is a risk of loss in futures and options trading. The valuation of futures and options may fluctuate, and clients may lose more than their original investment. Futures and options trading is not suitable for everyone. Past performance is not an indication of future results
%% Sounds like the bar-b-q borrowed thier name from you ''Pit Boss'' LOL Red HEAT warning \most of the week US \ weather RED HOT .Not a prediction; its a forecast