It is a good idea to establish a stop price that caps maximum tolerated loss on a futures position the moment that you decide to initiate it, and call in your stop order to the futures order desk every day as necessary. (Stop orders are day orders and expire at the end of every day.) Don't wait to set a stop later as your best judgement may falter if you start to lose money and you consequently may talk yourself into accepting more loss than what you should have tolerated. The proper use of stop orders can protect your trading capital which, in turn, protects your peace of mind.commodity futures broker, futures trader, commodities futures trading, financial and commodity futures markets, paper trading, full service broker assisted accounts.
As a beginning futures trader, you may want to consider trading in only one way: buying options. If you think prices will rally, buy call options, and if you think prices will decline, buy put options. The great advantage of limiting yourself to only buying options is that you are always protected from a risk management viewpoint. The most you can lose is the premium paid for the options (and the associated commission charges).commodity futures broker, futures trader, commodities futures trading, financial and commodity futures markets, paper trading, full service broker assisted accounts.
Don't Over Monitor
In the "old days", most futures investors based their trading decisions on prices read from the business section of a major newspaper. Even though they were one day old, they were still sufficient to enable many traders to accumulate substantial wealth. With futures and options prices available on the Internet, these days, almost any investor can get a steady stream of prices throughout the trading day. While timely information is certainly a good thing, beginning traders must be careful not to over monitor the market. Being glued to the computer screen to watch prices all day can make you "jumpy", with the consequence that you may react prematurely - or poorly - to price movements