Sunday, July 29, 2007

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 .

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