Many try to apply stock trading rules to futures. True, some of them do apply to both fields. However, there is at least one rule that you should think long and hard about. What rule is that? The 5% rule. Not risking more than 5% on any one trade is a common rule set by traders and investors alike. Some of us even prefer to risk ...

Choosing the best market for day trading may take some time to select. Whatever day trading market you select, it should be your favorite. It will give you an edge as a trader. What should be your consideration in selecting the best day trading market? You need to consider the following factors while selecting the appropriate market: 1) Dollar size of your trading account: Some markets may be too expensive for ...

Derivatives are financial instruments. They do not have a intrinsic value as they are derived from the value of another commodity, this could be coffee or another financial instrument example a share. We can trace back the development of derivatives to the commodities markets. Traders bought and sold 'futures contracts'. The purpose of these instruments is to lessen risk and hedge against certain types of ...

I was talking to my wife today about eminis, until today she had never heard of them and had no idea what an emini was. If you are reading this article you can probably relate. When I explained that eminis offer a way for the average person to make money in a volatile stock market she started listening a bit more, when I told her how much money my friends have ...

The advent of increased competition and electronic trading has lowered trading commissions for futures contracts to unprecedented low levels. Needless to say, the lower commission structure has had a positive effect on the bottom line for most futures day traders. At one time, commissions were a major expense in trading and it was not unusual to spend considerable time and effort negotiating the lowest possible commission rate. As it stands ...