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What are the dos and don'ts in futures trading?

DO

Make sure you fully understand the risk involved.

Decide on the amount of money that you wish to invest in futures.

Decide on the levels of loss you can tolerate per trade as well as overall.

Trade with the trend, go with the momentum

Treat each trade separately from the pervious trade, unless it is meant to close out the previous trade.

Withdraw all profits above the sum you are committing to futures trading.

 

DON'T

Average loss-making positions.

Run your losses. Do not continue making margin calls.

Lose more on a trade than the amount you had originally set. Stick to it.

Trade with money you cannot afford to lose.

Source from: Amanah Futures and Options Sdn. Bhd.


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