Futures Trading Tips for Futures Traders

Futures trading tips for futures traders, especially for beginner future traders:

1. Futures Trading System

Futures traders should always trade based on their own futures trading systems. If you don't have any trading systems, keep looking. A way to find futures trading systems is by doing futures trading analysis on daily basis.

2. Stop loss order

Futures traders should always place stop loss order after opening a new position. It should be done no matter how confidence you are with your trade. Always put the risk first then the return afterwards.

Please trade futures contracts carefully, because futures trading is a high risk invest tool. Why? because futures trading use margin to trade. Meaning? futures traders can loss more than what we has invested.

Have futures trading tips for futures traders? share them in Discount Futures Trading.

Futures Trading Systems by Greed and Fear

Futures trading systems are very important to be successful in futures trading. Why ? because without any futures trading systems, traders would be distracted by greed and fear. As humans, traders cannot avoid greed and fear, so traders shouldn't avoid them, traders should use them.

How ?

We can use greed and fear to create our own futures trading systems. We use greed and fear as our temporarily futures trading systems. So we trade based on our greed and fear. This will cause us to make many mistakes ( losses). We need those mistakes to do futures trading analysis. Futures Trading Analysis will help us to answer these questions :

• which futures contracts to trade
• when to buy and sell futures contracts

If we already have the answers, it means we have found our own futures trading systems.

notes :

• always trade with small capital when using greed and fear futures trading systems.
• always update the futures trading systems

Already have a good futures trading system ? please share how did you find it ?

Hang Seng Index Futures in Discount Futures Trading

What is Hang Seng Index in discount futures trading ?
Hang Seng Index ( HSI ) is a Hong Kong stock market Index, so it is the main indicator of the overall market performance in Hong Kong. If the HSI goes up, it means that the Hong Kong economy is good.

What is Hang Seng Index Futures in discount futures trading ?
Hang Seng Index Futures is a discount futures trading contract that the underlying asset is Hang Seng Index. So the futures performance is based on the performance of Hang Seng Index.

Hang Seng Index Futures is one of the most volatile in Discount Futures Trading. Remember that volatile means both good and bad. Meaning ? offers high return but also high risk. So if you want to invest in Hang Seng, please calculate your risk first. If you think the risk is too high, don't do it, there is always another Invest Tool to use.
Invest Tool : http://investtool.blogspot.com/

Orders in Discount Futures Trading

Orders in Discount Futures Trading are orders from customers to their futures brokers to buy or sell futures contracts.

There are three types of orders in Discount Futures Trading, which are :

• market order is an order to buy or sell futures contracts at current market price
• limit order is an order to buy or sell futures contracts at a certain price or better
• stop order is an order to buy or sell futures contracts after the futures price crosses a certain price ( stop price )

which order should we use in futures trading ? it depends on the purpose :

• to open positions use limit order
• to close positions use stop order
• don't use market order, too risky

Please always create a trading plan before trading futures. http://futuresoptionsbrokers.blogspot.com/.

4 Main Characteristic of Futures Contract

The Four Main Characteristic of Futures Contract are

• Futures contract is exchange-traded
• Futures contract is standardized contracts
• Futures contract is guaranteed by clearing house
• Futures contract is regulated
• Futures contract requires margin to trade

Futures contract is different from CFDs.

Discount Futures Trading ? Don't do it !

Please don't do discount futures trading if you only know about the benefit of discount futures trading. Discount futures trading has one main risk, which is unlimited loss. Futures traders sometimes feel that trade futures is cheap, but they forget that it's cheap because they use margin. With margin, futures trader can trade futures beyond their real capital capacity, so once they got a wrong futures trade decision, it would wipe out all their capital. So do we need to avoid discount futures trading ? the answer is no, but there are some points that you must follow, which are

1. only trade futures based on trading system
2. always use stop loss every time you open a position
3. use a good broker

So what do you think about discount futures trading now ?

Before doing discount futures trading, please do Futures Trading Analysis .

Why Discount Futures Trading ?

There are some advantages in futures trading :

• Trade futures for leverage

when you buy futures , you only have to put a small proportion of the value of the underlying asset.

• Trade futures for speculation

if you expect the market to be bullish, you can buy futures . But if you expect the market to be bearish, you can sell futures.

• Trade futures for hedging

futures can give protection from the price movements of the underlying asset in the futures.

• Trade futures is very liquid

it's easy to open and close positions in futures market

• Short term trading for futures

i think it's easier to do short term trading in futures.

what do you think about the benefit of discount futures trading ?