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How not to Lose your Shirt When Trading in the Futures Markets
There is an alarming number of new, and uneducated, commodity traders losing just about everything they own. Why? There are a number of reasons why a new futures trader stands back, scratches his/her head and wonders why their trading account went from thousands of dollars to almost nothing over night.
What happened?
There are actually a number of things that came into play.
1. First and foremost. They believed all the hype that they would become rich over night.
2. They did not buy a good course on how to trade the commodity markets.
3. They picked up some books on trading at the library, or worse, they signed up with a trading forum on the Internet and believed everything the so called experts said about getting rich over night in the futures markets.
4. They did not have a trading plan before they placed a trade. A disaster in the making.
5. They believed everything their broker told them. A NOTE: All brokers are not bad.
So what are new traders supposed to do. How do they keep from losing all their money in their first month as a commodity trader?
There are two very basic ways to learn the craft of trading.
1. Paper trade. Learn what to do before risking a penny.
2. Trade Mini-Futures contracts. Keep any loses to a minimum. |  |  |  |  |
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