Defining Trading Goals with the Help of a Commodities or Futures Broker

New day traders should have clear trading goals that can help guide his or her investment strategies and to measure their success. A seasoned commodities broker can assist them in creating a plan and setting goals so the trader can achieve them.

  • What are my goals in trading commodity futures?
  • How much do I really know about the behavior of the futures markets?
  • What am I looking for in a futures broker?
  • Do they have competitive commission rates?

A commodities broker should specialize in trading U.S. treasury bonds, stock indices,foreign currencies, precious metals, crude oil, agriculture, and other products on the futures andcommodity exchange, including futures options. A seasoned broker create and tailor strategies to fit every future trader’s style of trading and risk tolerance. 

Whether you are new to the commodity futures markets or have been trading for a while, you are probably using the Internet to gather information, compare commission rates, and eventually to choose a commodity broker.

A general objective for futures trading, such as income generation, is nice to read but unhelpful. Simply earning an extra cent is enough to fulfill this goal, which can lead to extreme conservatism in investments. On the other hand, new traders may make risky plays in the quest for more income. And even if they did make money, they are unable to appreciate it because they “lost” potential income, if they mistimed their sell order.

Concrete goals can help the rookie futures trader avoid these pitfalls. However, it’s very difficult to formulate these goals when he has very little basis for his expectations. He can’t tell whether $10k in a few months is reasonable or even achievable.

A commodities broker has considerable knowledge and expertise about trading in futures. He can give the new futures investor advice about his trading goals and how to obtain them. The broker can correlate the investment capital with the desired income and the timeframe, while accounting for…

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