How to Trade Futures

The more you know about futures and commodities trading, the better you can determine if opening an account is right for you.
The materials below will provide an introduction to the major concepts, terminology, and mindsets critical to futures trading.
We have found the following concepts to be very important. Take a moment to familiarize yourself with this list before reading the more in-depth booklets below.

Steps

1. 
   
   1. 
      
   2. Use risk control. Poor money management and too many correlated trades lead to bad results.
   
   
   3. 
      
   4. Make rational bets.
   
   
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   6. Risk 1-5% of your portfolio on a single trade.
   
   
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   8. Don't wish. Don't hope. Diagnose the trading process.
   
   
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   10. Decide on an exit point before you put on a trade.
   
   
   11. 
       
   12. Cut losses. Ride winners. Close positions you are uncomfortable with.
   
   
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   14. Stick to your own style.
   
   
   15. 
       
   16. Don't over-trade.
   
   
   17. 
       
   18. Use stops.
   
   
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   20. Discipline. Imagination with discipline.
   
   
   21. 
       
   22. Keep the money you make. It's hard to make it.
   
   
   23. 
       
   24. Keep a log of what you do. Observe and think about how you can improve.
   
   
   25. 
       
   26. Expect the unexpected. Expect the extreme. Don't be too tied to history.
   
   
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   28. Use different strategies to avoid having all your orders going in at one point.
   
   
   29. 
       
   30. Don't average losses.
   
   
   31. 
       
   32. Decrease your trading volume when you trade poorly.
   
   
   33. 
       
   34. Increase your trading volume when you trade well.
   
   
   35. 
       
   36. Play defense, not offense.
   
   
   37. 
       
   38. Honor your risk point.
   
   
   39. 
       
   40. Don't get emotionally involved with your positions.
   
   
   41. 
       
   
   

Tips

• Now that you have explored these basic futures trading strategies, take the time to read through the following booklets from very reliable sources.
  

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