If you’ve never done futures day trading before, it can be intimidating. The concept of futures trading is confusing for many new traders. It’s important to understand the basics before you jump in. Common question futures day traders ask is how much return can I expect? This depends on many factors. Some are easier to define than others.
Return should be the first consideration when you evaluate futures investing strategies.
Since this is something you invest in order to create income, the return should be substantial. Therefore, with a small $15,000 capital, you could create enough income to live on comfortably for several months or years, depending on your strategies. This is just a simple mathematical equation, and can be easily solved by finding five transactions a day that provide this return:
Since this equation describes what will happen if you start trading, it’s also good to know how much money you have to invest, and how quickly you need to start generating a consistent income potential. As stated above, risk is part of the equation. And when you’re talking about the future, it’s very difficult to forecast. Therefore, when you consider your investment potential and the amount of time you have to invest, these numbers will dictate your initial return level. The risk is always involved in any venture, so you need to evaluate it accordingly.
You should also look at your broker when evaluating your futures trading platform.
Is he or she reliable? This really does not have a direct bearing on your success, but it’s an important consideration. There are many brokers out there who are willing to do transactions for you, but some are more trustworthy than others. You definitely want to choose someone you can trust, or at least one you feel you can trust.
You should also consider your own trading strategies.
What markets will you be trading? Are you comfortable executing high risk trades, or would you rather limit your risk, while maximizing your income potential? Different futures oil futures strategies will result in different profits, so you need to choose one that works best for you.
A reliable volume data feed is another critical feature of a profitable futures day trader. If you trade on over the counter market, then your broker can usually supply you with reliable volume data feeds. Some of the more common options are EFT (emission traders) and OTCBB (over the counter pool).
It’s also important to consider the types of investments you would like to make.
Are you interested in stocks, futures, commodities, index funds, or other options? There are many different ways you could go about investing, but some of the most popular include: U.S. stock, foreign stocks, bonds, commodities, interest rates, money market, bank accounts, certificates of deposit, CDs (certificates of deposit), and more. In order to choose the best futures trading strategy for you, take the time to explore all of the available markets and the best investment vehicles for you. It may take some time to find the perfect strategy, but you’ll be glad you did once you start making money!
Lastly, don’t forget to do your research.
Familiarize yourself with all of the available futures trading strategies, as well as the markets you plan to trade in. Then be sure to read up on technical analysis, as this is an essential part of being a successful trader. Take the time to learn as much as you can about the different markets, including how they operate, the types of products traded, as well as common strategies and techniques. When you have a good understanding of the markets, you’ll have a great chance of coming up with accurate and useful futures day trading ideas and plans.