Have the most money at the table. You must be able to make sloppy entry mistakes from time to time and still have enough reserve funds to hold on until your trade set ups work as chance commends. This is done by trading small positions relative to your account size. Figure how far the commodity market must move to actually make you wrong and then figure out how massive a position to put on.
A smart and famous commodity futures trader once recounted you can get by just selling double and triple tops or buying double and triple bottoms. I would agree with him. I would like to show you a commodity trading technique that takes this idea a step further for better confirmation.
I learned instructive lessons in this business that is not to trust any commodity account statement. As good as our computerized world is today, there are still mistakes being made. It can suggest having wrong trades put into your account or not receiving them. Mistakes can be more many when day trading since many trades is not consistent fast.
As detailed as this article is, don't forget that you can find more information about electronic futures and commodities or any such information from any of the search engines out there. Commit yourself to finding specific information therein about electronic futures and commodities and you will.
In those days, you had to call the trading desk to book an order. The commodity market was touching a large resistance area as shown by a methodology I continue to use today. I was under the impression it had to have a pullback. I did not consider the power of the last half hour on a Fri. Afternoon, nor exploited the future's time cycles I use today.
You want to plan, survive and be in a position to trade another day too. Work out a money management trading plan which may let you trade like a pissed sailor for short periods and still stay intact. Because everybody trades poorly from time to time, whatever how hard we try very hard not to. Demand that your commodity broker describe his account survival plan to you. And don't accept the answer, well, you can always send in extra cash if we risk everything now. That would be a cop out. We must work with whatever account balance we have. Use only money you're able to afford to lose. This keeps you thinking more clear too.
Most crucial things first, let's outline what managed futures are, and what they are not. Managed futures aren't stocks or ETF's that simply invest in commodities. Managed futures accounts are investments in which funds are invested in regularly leveraged, future dated contracts for the physical commodities or money instruments. Commodities can include sectors like food, energy, raw materials and also financial instruments like IRs and stock causes.
For your information, we found that lots of people that were searching for commodities and financial futures also searched online for spot futures, stock market futures, and even Berkley futures.