Futures day trading as the name suggests can be defined as the process of buying and selling a futures contract(s) within the same day. In other words, it is the type of trading which opens and closes a futures transaction within a single trading day. It falls into the category of short-term trading.
Today traders have become more inclined towards futures day trading for a variety of reasons. However, the prime reason is that- Theoretically, no positions are to be held overnight when day trading futures. In fact it carries with it no overnight risk which means no particular political or business event, which can take place after the close of the futures contract, will actually affect those who have closed their contracts out during the day. This in turn allows the futures trader to sleep well at night knowing he has no open positions to worry about.
Apart from this, the key attraction of day trading futures is that it provides ideal platform for small trader to quickly turn a petite amount of capital into a significant sum of money. Though, day trading for new futures traders can be sometimes quiet tough task as it requires a good knowledge, experience and discipline to day trade futures successfully. There are chances that if you take futures day trading lightly, you could possibly wipe out your trading account in a matter of days.
Thus the key here is to have both a good futures day trading system and an exceptional level of discipline to take action as needed. Making money through this trading process is just like making money trading in any financial market. Like any other commodity trading, it also needs to have a proper plan, and then executing the plan in order to make profits. Therefore, it is very critical for your trading success that you meticulously inform yourself in futures trading, and trade only with a good and solid trading strategy
Sunday, February 7, 2010
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