Education
It is important to complete your initial education on trading before engaging in it, including knowledge on contract specifications, trading hours, futures brokers, platforms, opportunities, risks, and the need to use risk capital. Familiarizing yourself with this information is crucial for developing effective futures trading strategies. Additionally, ongoing education is necessary to learn about trading techniques, the evolution of futures markets, and different trading tools.
Find A System
Develop a clear trading strategy with set rules and concepts. Avoid subscribing to "black box" systems that generate buy/sell triggers without understanding. Automate indicators later, but don't trade blindly without a plan.
Survival
This is the key! Do what you need to do in order to survive this brutal business and give yourself the chance of being here down the road with more experience and a better chance of success. Survival is probably the biggest key for beginning traders. There is a saying in this business: "live to trade another day." It is so true!
Money Management
Money management is essential not only for survival but also as a separate skill. To ensure your survival, it's crucial to establish loss limits for each trade, day, and week. Effective money management involves understanding your risk-reward ratio for each trade and time frame.
Goals
To track your trading progress, establish goals for each trade and regularly evaluate your progress. Set daily, weekly, and long-term goals, breaking your plan into small steps. Re-evaluate your financial situation and risk capital regularly.
Experience
Congratulations, you've reached a significant stage! As with anything else in life, having more experience increases your chances of success. However, it's crucial to gain this experience without risking all of your capital. What's the point of experience if you don't have the funds to trade with?
Learn Your Setups, Strength and weaknesses
Identify comfortable and confident trading setups, then capitalize on them. Develop a trading system, set goals, and survive past losses to gain confidence and funds. A "pro" trader waits patiently for the right moment, like a lion waiting for prey.
Trading on a consistent Basis
Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used.