Day Trading Futures - Day Trader Systems ebooks &
The chances are that 99.9% of traders who are
interested in traders futures just want to day trade the
emini markets and are not going to trade port bellies,
grain and other commodities!.
One of the reasons why is because the emini (also
referred to as e-mini and eminis) have lower trading
costs and have a very high trading volume on a daily
basis which is what day traders must have.
The most important thing to remember about trading
futures is that your losses can be much greater than
your initial investment. This is different to stocks or
stock options, in these you can only lose what your
initial investment was.
If you read about trading futures and some of the big
players in the past you will find that often the reason
why some big traders, hedge funds and even banks have
gone bust is because they were trading futures and did
not money manage their positions very well.
The same is true for the Forex market but Forex
brokers seem to have been ahead of the game slightly in
the sense that they have developed very fast account
controls that will very quickly liquidate your positions
once you break some preset margin levels.
If you are going to trade futures make sure that your
broker is going to close your positions automatically
for you should you start to incur losses beyond your
margin account limits.