Day Trading Futures Do you have the Stomach?
Posted by: Richard Estrada // Category: Euro USD FuturesI always write about the fact that day trading futures isn’t for the meek, or garden-variety-investor, but for those who have the intestinal fortitude to day trade the most aggressive markets in the world. Now, when do you think you need a strong stomach? Is it when a futures trader is winning every trade? Do you think it’s the first trade of the day a futures trader places? Or is when the last six trades a futures trader has placed went 0 for 6?
If you selected the last answer then you are right. The heat tends to build up in your body when your losing not winning and that’s when things seems a little less clear. This is when a futures trader relies on their training so to speak. These futures traders understand that losing is part of the game and as long as they are doing that right (losing) then that should assist them until the tide turns.
Think of it like a combat soldier, not every shot is going to hit it’s target and is some battles you are going to be pinned down by the enemy. You could retreat from the battlefield, which is perfectly ok. You could also return fire, reassess the battlefield and reposition yourself trying to get a better shot at the enemy. Mind you, in trying to reposition yourself you are probably going to be taking fire from the enemy and this is probably when you need to call on your intestinal fortitude.
So, think of day trading futures the same way. It’s when the market seems to have a futures’ trader pinned down that they are required to call upon their guts. Now, that doesn’t mean these traders abandon their discipline or training. If a futures trader is going to engage the market when that trader seems to be pinned down by the market, a disciplined trader will continue to use their stops (if that is part of their strategy), take the trade that they are trained to take and monitor the flow of the battle. Remember, in my opinion I think trading is a game of adjustments and making adjustments in the heat of battle is part of the day trading game.
This is what I am referring to when I say a futures day trader needs the intestinal fortitude to day trade futures. It doesn’t matter if you are a discount trader calling your own shots, or a retail client that is utilizing the expertise of a futures broker, the point is at some point you will probably have a stomach check. Remember “Day Trading Futures “isn’t for the meek or garden-variety-investor, but for those who “Dare to Trade,”
There is significant risk of financial loss when trading futures and options. You should carefully consider whether such an investment is right for you in light of your financial condition.
