If you are thinking about entering the futures day trading arena, I’m not just talking big money here. I’m talking about real wealth. As long as you know how to play the game, there’s no reason you can’t become rich. And you don’t need much money to get started because there are some strategies that can get you started in the markets with very little capital.
The point of this article isn’t to discourage you. It’s to get you excited about the possibility of making hundreds of thousands of dollars a year trading futures. So, if you have a good futures day trading plan, and a half a million dollar account, you could make:
If you invest only five percent of your account in a risky venture like futures day trading, chances are you will lose that amount. But you might be able to make a bit more than that with some careful investing techniques. One way to do this is to take advantage of low price situations. You can often find these by looking for stocks with little news buzz. If you find one, pay attention to it. Then, once it begins to rise, enter a position immediately.
Here’s another example. If you find a mini lot with fifty x 8.3 mini lots, take advantage of it by purchasing them at fifty dollars each. Then, sell them for one dollar each. You’ve made four dollars profit in the time it took to find and purchase them. When you multiply that by fifty, you come up with the equivalent of a hundred dollars in profits on the day trading program.
So, how does all this work?
First of all, day trading programs allow you to look at the market conditions from a very distinct perspective. In other words, instead of being tied to your own emotions, which can often lead to bad decisions, day traders make decisions based on cold hard facts. The goal is to make more money while you are resting. The system eliminates emotions, which makes decisions easier.
Take advantage of leverage
Another way traders make better decisions is by taking advantage of leverage. Leverage simply means that you are able to increase your investment in trades by buying more shares of the underlying product. If the market conditions in your chosen region are unfavorable, you can usually increase your leverage until the market conditions change favorably. This works best when you are trading small lots or when you are still learning to day trade.
Automated Strategies
Day traders can further increase their income potential through automated forex strategies. These core strategies are computerized trading systems. They monitor the market and analyze changes in the data to make profitable trades. They send out alerts when they find opportunities to invest in a particular market. The advantage of these automated systems is that there is no human emotion involved. They simply follow the proven and tested rules of thumb.
Once you become a day trader and are able to maintain your consistency, it will become much easier to make money consistently. If you know how to read the charts, you should be able to make money consistently in any market condition. You must also be able to identify trends in the markets, because trends are the bread and butter of a futures trader. Trends are the things that make the market go up or down. Once you have learned how to read the charts, you can start to automate your trading process so that you spend most of your time on actually making trades, rather than monitoring the market.
