Today, with online futures trading, we have instantaneous results which provide greater benefits for the trader. This of course results in worldwide access. Before we address possible methods, we must first recognize the players in this high stakes game of commodities.
Since most individual traders are speculators, here is a list of some of the advantages and disadvantages of the futures market over other investment possibilities.
1. The possibilities exist that a person can make more money faster in the futures market, because the speed of prices tends to change faster than stocks. Conversely, bad judgment can cause one to suffer greater losses than traditional investments.
2. Futures are highly leveraged investments. The trader only puts up about 15-20% as a margin, yet still being able to ride the full amount of the contract.
3. For the most part there is no inside trading. Everyone has the same insider's information on the weather, for example. This is an open outcry market, very public, which insures a fair outcome.
4. Commission charges on futures trades are small compared to other investments, and the investor pays them after the position is liquidated.
5. Most commodity markets are very broad and liquid. Transactions can be completed quickly, lowering the risk of adverse market moves between the time of the decision to trade and the trade's execution.
Most traders that fail do so because they don't have a realistic plan. Hopefully by the end of this article you will have the knowledge to be able to devise a program that will reap huge profits, by trading futures correctly.
As the market rebounds from crash in ‘08 and the early decline of 2009, more and more online investors are once again turning their sights to day trading. Many so-called experts lump all online traders into the bag of day trading. For the sophisticated observer it is plain to see the obvious differences. A day trader rides the rush of the asset, while a swing trader diagnosis the trends and holds onto it as long as the momentum last. I don't know if the term "day trading" ever existed before we had access to the internet. If it did, I some how would picture a broker becoming a bit frazzled, trying to keep up with this mad client who is buying and selling at the speed of light. Because this, is the life of the day trader. They do not care about fundamentals or even for that matter what the company does. They are riding the trend, up or down it doesn't matter, as long as the asset is behaving the way they have projected it would. Day traders don't care what markets they are in, be it stocks, options, currencies, or futures, they get in and out with a fast profit. A transaction may last a few minutes, an hour or so, but never more than that day.
So it is online trading, which includes day trading, that is regaining momentum. All part time traders are swing traders, because you simply can't monitor an asset that you might want to transact at any second, on a part time basis. These rebels of tradition are literally traders, rather than investors, but can reap huge rewards in a relatively short period of time. Of course, day trading for a living does carry some fairly large monetary risks, so you must know exactly what you are doing from the time the markets open to when they close. This is the itinerary of a day trader. If you can't commit or don't have the time to pursue this strategy properly, I suggest you look into swing trading.
So now you have some idea of the type of futures trader you plan to be. It makes no difference what commodity you choose (most novice traders tend to lean toward Forex) you're going to need the right tools to go with your knowledge. Any training you receive should be for technical analysis, or you are just wasting time and money. As far as software platforms, the following suggestions I strongly feel are necessary for any software to be useful.
1. It must be able to offer live streaming technical data. (Otherwise the program is merely educational)
2. The platform should defiantly include candlestick charting.
3. Visually it has to be large enough for all the data to be seen easily. (Many of the online brokerage's technical data are too small to be useful)
4. It must be cost effective. (Most good systems can be purchased for between one and two hundred dollars)
These are just a few ideas that you can utilize to increase your chances for success. I don't profess to being an expert, but I do know of some. I obviously don't have the time to go into all the details now, but at my site Market Mentalist you will find all you need to know about investing online. There is access to some of the top trading systems available including state of the art software, books, newsletters, and Forums. Also you will find the most up to date articles on Online Trading, including additional information on How to Trade Online Futures...Day or Swing Trading . Whether you are an inquisitive novice or a seasoned pro Market Mentalist offers the online investment resource you just might be seeking
How To Trade Online Futures...day Or Swing Trading