Make money trading futures


Most people who trade live a lifestyle well below their means. Even though they have made enough money to buy most of the lavish things in life they choose to live within their means.

Many self made millionaires choose to live this same way. I seem to be getting asked more frequently now by students about how much money they can expect to make as a trader. Imagine how difficult it is to answer that question. How much money you can expect to make as a Professional trader is as individual as your fingerprint is. For each of us the term successful means something different. Being successful does not have to mean making millions of dollars either. While some will be happy to make just enough to supplement another income they already have.

A lot depends on the lifestyles each of us has chosen. If you have expensive taste and feel you must have the biggest, fastest, most expensive, etc toys then you will need much more money to live. For others they will be content to make a comfortable living and save for their future retirement. There is no magical number anybody can give you to expect to make in the Futures markets. You want to be a successful Professional trader? All you need is a true passion for trading. This means not trading because you are only doing it for the money, but because you love to trade.

Then because you are doing something you are passionate about you cannot help but be successful because you will be happy doing what you are doing. Again successful does not mean you are making millions of dollars. Another difference between Professional and Dreamer type of traders is risk management. Professional traders are more concerned with risks than they are rewards.

Because I have been trading Futures for 25 years many think I am a great trader. To be honest, I am an average futures trader. What I am great at — risk management. Every trade I look to enter the first place I look on the chart is the point where I will be wrong on my trade. As soon as I see this I know two things:. Many successful traders use a good risk to reward ratio for each of their trades.

Since trading has no guarantees of success we must be prepared for a loss or a series of losses. This allows us to have larger winners than our losers. A typical ratio is 1: Each trader must define how much risk they are willing to accept for each trade. With such small percentages you can see why having an adequate trading account size is important. While anything is possible in trading it is highly unlikely if the trader uses the exact strategy as planned for each trade. This means not trading because you are only doing it for the money, but because you love to trade.

Then because you are doing something you are passionate about you cannot help but be successful because you will be happy doing what you are doing. Again successful does not mean you are making millions of dollars. Another difference between Professional and Dreamer type of traders is risk management. Professional traders are more concerned with risks than they are rewards. Because I have been trading Futures for 25 years many think I am a great trader.

To be honest, I am an average futures trader. What I am great at — risk management. Every trade I look to enter the first place I look on the chart is the point where I will be wrong on my trade.

As soon as I see this I know two things:. Many successful traders use a good risk to reward ratio for each of their trades. Since trading has no guarantees of success we must be prepared for a loss or a series of losses.

This allows us to have larger winners than our losers. A typical ratio is 1: Each trader must define how much risk they are willing to accept for each trade. With such small percentages you can see why having an adequate trading account size is important. While anything is possible in trading it is highly unlikely if the trader uses the exact strategy as planned for each trade.

While this article may have sounded a bit negative about some areas of Futures trading I did this intentionally. There are too many media ads showing all the promises of getting rich trading Futures.

At Online Trading Academy each of our classes will show the trader about risk management and how to use it. We want to help you become Professional risk managers as well as helping you learn to trade. In closing remember that Futures trading can be as rewarding as you want to make it. There will be some bumpy roads along the way.

But remember, a road with no obstacles probably does not lead anywhere. Commodities March 5, Futures Trading: Disclaimer This newsletter is written for educational purposes only.

By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter.

Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.