The following article includes pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.
This interesting article addresses some of the key issues regarding Futures trading. A careful reading of this material could make a big difference in how you think about futures markets and trading them.
How a strategic money management plan works is discipline, not magic. In the market place its possible to be right, and to still lose money. In fact, its pretty common. Traders who win on a high percentage of their trades often end up with their capital eroded away, and left with nothing to show for their work. They lose their gains because they dont know how to manage their money.
Being a good manager of your own money is one of the most difficult of skills to learn. But if you do not use good money management to bank profits, learn to take small losses when you are wrong and control your use of margin, you will lose it all. No matter how good of a trader you think you are, your first priority needs to be protecting your...