I started out trading stocks in 2005 using the Wizetrade red light sell and green light buy program. We purchased that system because of a TV commercial that made it sound like an easy way to make money trading. Needless to say, Wizetrade was not as easy as portrayed on the TV commercial. Trading Futures also is a great way to make money but I don’t want to make it sound like it is a green light buy and red light sell trading system. Trading futures takes work, patience and following a good trading method. You need to start out trading in a Simulated mode until you have learned the trading method that works for you. But there is a big difference in trading real vs trading simulated.
Making a Small Account Lucrative
The majority of people starting a trading career start out with a small account and begin to begin practicing the process of trading Futures. Sometimes this process goes well, most of the time there are problems that can arise that cause the traders to have a hard time in their learning process.
- The two main reasons are:
- The system they are trading is hard to trade and difficult to understand.
- The trader does not follow the rules of the trading system.
The way to solve the #1 problem is by back-testing the trading system and find the trade entries on your chart. Mark the times when the trade entries take place and load coinciding playback data to back test those trades and see if you would have been able to recognize the trade in real time on playback.
To solve the second problem is a mindset problem. You have to make up your mind your going to follow the rules and not deviate from the rules. That does mean the rules are always good. Sometimes the rules have to be altered until you have a working rule set. Also, to help with the mindset of trading you need to know how much money you can make with the trading system you are using and the possible win rate of that system.