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Futures trading can be risky and an enormously stressful activity, particularly day trading futures contracts. When you attempt to trade a market, any market, without having an exact plan as to how long you are willing to stay in the trade or at what level to get out, then you are a weak minded person who makes trading decisions on wishful thinking. This is the hard truth you have to hear.
Futures trading is a great oportunity, it provides excellent leverage and high risk but if you use it together with a strict trading plan and some education on how to trade futures, then the markets cannot move much against you. A lot of good day traders never wait for more than 25-30 minutes for the trade to prove itself. If you have counted 30 minutes on your trade and you still want to wait for things to get better, then you are a weak, emotional trader. 30 minutes becomes an hour, then half the session, by that time you are losing 20 times more money, then finally comes the closing bell and you don’t have to worry anymore, the contract is closed.
You have to realize that futures are not like options or long term stock investments, they are much more volatile, and subsequently the emotions that come with it are also much more volatile. Futures trading is a lot about volatile emotional trading, and this is a kind of contradiction. How can one become emotionless when they are willing to play with a source of emotions?
The fact is that it is still difficult even for experienced traders to get rid of all emotions, but overall they manage to do just that. Not only are experienced trades calm with their trading, they are also calm with the way they drive, they don’t get mad at other drivers mistakes and bad manors. They are willing to give in, in many aspects of life because they feel a sense of guilt, they feel that all the millions they have made trading has come at the expense of society so they owe to somehow thank society for that.
Futures trading is a testing ground for the psychology of all people, I can always tell who can possibly win and who will certainly lose at futures trading, just by looking at they way they talk and they way they drive, nothing else! The emotions that come out of futures trading are really hard to manage, the volatility is hard to take.
If you really want to learn how to trade futures in an emotionless way, and also learn excellent money management techniques for your trading, then you really have to find a trader who is already a big winner. One that feels a lot of ‘guilt’ for making a lot of legal money without the 9 to 5 hard work, but rather by using advanced intuition and mental devotion. Believe me, the traders that made big money are not the sort of people you suspect, they are definitely not the people who believe that their car is a reflection of their wallet, so they drive normal, middle class cars. They don’t want to impress anyone in the city, they might however have their own yacht, their own villa in some exotic island. On the contrary, a social, poser kind of person who flashes his money IS addicted to human emotions. He likes people staring at him, he likes that feeling, and when he attempts to get involved in the markets and start trading futures contracts, he gets killed every time. He cannot think impartially and cannot see the truth.
Whoever you choose to be your trading mentor, make sure they are they ‘guilty’ low profile kind of person and not the poser, in fact you won’t find any posers in the stock market, the market is good at knocking them out fast.