50 Important Tips From Professional Futures Traders

50 Reasons Why Most Futures Traders Lose Money

Introduction

If you'd like to learn to trade commodities, the first thing you should know is that speculating in futures involves risk is, unfortunately, an unprofitable exercise for far too many traders. Having said this, however, it's also undoubtedly true that many unpleasant experiences probably could be avoided if more traders would develop and adhere to a disciplined futures trading strategy; utilize basic risk management techniques; and take the time to study the habits of successful traders.

Well-known futures industry educator John Walsh interviewed 500 experienced futures brokers, pit traders, and Commodity Trading Advisors, and asked them why they believe most futures traders lose money. With the benefit of having watched thousands of clients trade -- and since many trade actively themselves -- these individuals are in an excellent position to offer ideas as to why so many traders seem to fail, and why some are successful. Interestingly, many of the reasons cited by these top brokers and traders were virtually identical, which suggests that many futures traders lose money for many of the same reasons. As you read this list, perhaps you might recognize some of your strengths and weaknesses, and hopefully these ideas will help you learn how to trade commodities more profitably.

To help you absorb this list, we've broken it into 5 sections, consisting of 10 tips each. Our experience is that to throw all 50 pointers at you in one lump is counter-productive. It's far more effective to read and consider 10 per day. So start the course today, and return over the next few days -- you'll find that the ideas "soak in" much better using this approach.

Next chapter: Reasons 1-10