đźThe Futures Trading Trap. Why Most Traders Failđ
Many futures traders lose money. This is a hard truth. A massive survey of brokers revealed why. They studied over twenty thousand traders. The same mistakes appeared again and again.
Here is why most traders failđ
âïžThe Problem. No Plan. Traders jump into the market without a plan. They do not define their risk. They do not set profit goals. They trade on hunches and emotions. Greed and fear take control. They let losses run. They cut profits short. This is the biggest mistake.
đThe Problem. Poor Discipline. Discipline is everything. Many traders lack it. They overtrade their accounts. They use too little capital for such large positions. This puts them in a squeeze. They are forced to sell at a loss. They get a margin call. A margin call is a sign of failure. It means you held a loser for too long.
đčThe Problem. Chasing the Market. Traders are impatient. They try to "beat the market" with nervous scalping. They trade every rumor. They listen to old news. They trade against the main trend. They are on an ego trip. They cannot admit they are wrong.
đ§ȘThe Solution. You Must Be Different
You must have a strategy. Here are the keys to success.
1ïžâŁBuild a Trade Plan. This is your most important job. Plan your trade before you enter. Know your profit target. Know your exit point. A good plan removes emotion. You will not be tempted by fear. You will not be controlled by greed.
2ïžâŁProtect Your Capital. Use stop orders. Do not use "mental stops". Mental stops are useless. They are too easy to ignore. A real stop order protects your position. It enforces discipline. It cuts your losses short. This lets you trade another day.
3ïžâŁPace Your Trading. Start small. Do not trade ten contracts when you are just beginning. Start with one or two. Develop your method. Avoid using all your money. A few bad trades should not wipe you out.
