Trading is easy, buy the dips, sell the rips, according to google, on the question how to trade futures, the answer is :
- Understand how futures trading works.
- Pick a futures market to trade.
- Create an account and log in.
- Decide whether to go long or short.
- Place your first trade.
- Set your stops and limits.
- Monitor and close your position.
- Withdraw your profits
Awesome, lets get rich! Unfortunately, in reality it is bit different and there is a “BUT” how do i start, where do i start ?
But, what is trading, what are futures, what are instruments, where do i create an account and many more questions.
In a nutshell :
- Education
The first step to successful day trading is building a solid foundation of knowledge. Learn about different financial markets (stocks, futures, forex, etc.), how they function, and the role of day trading within these markets. Research various trading styles and determine which aligns best with your goals, once you do narrow down your education in that direction, is it gonna be furures, forex or whatever.. - Basic Understanding of the Market
Before diving in, it’s crucial to understand the core concepts of trading, such as:- Trends: Price movements in a specific direction over time. Learn to identify uptrends, downtrends, and sideways trends.
- Indicators: Tools like moving averages, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and volume that help predict price movements.
- Short vs. Long Positions: Going long means buying with the geexpectation of the price rising. Going short means selling with the expectation of the price falling.
- Develop an Education Plan
As a beginner, creating a structured learning plan is essential. Focus on learning the following:- Market mechanics and terminologies.
- Technical analysis (chart patterns, candlestick formations).
- Fundamental analysis (understanding economic reports and earnings).
- Risk management techniques (setting stop losses, controlling position size).
Use books, online courses, YouTube videos, trading blogs, and podcasts to enhance your knowledge.
- Develop a Trading Plan
A trading plan is your roadmap to success. It outlines:- Trading strategy: What style suits you? (Scalping, trend-following, swing trading, etc.)
- Risk management rules: Define your maximum risk per trade, position size, and stop-loss settings.
- Entry and exit rules: When will you enter and exit trades? Set strict criteria for both.
- Time commitment: Determine how much time you can dedicate to trading each day.
Stick to your plan to avoid emotional decisions and ensure consistency.
- Practice on a Demo Account
Before risking real money, open a demo account on a trading platform to practice your strategy in a risk-free environment. This helps you:- Gain confidence in executing trades.
- Test and refine your strategy without financial risk.
- Learn to navigate the platform and place orders quickly.
- Start Small with small accounts from any prop firm
After practicing on a demo account, start with a small account from any prop firm. The emotions involved in trading real money are different, so starting small allows you to build psychological resilience. - Track Your Progress and Adjust
Keep a trading journal where you document every trade, including the rationale behind the trade, entry/exit points, and results. Review your trades regularly to identify patterns, mistakes, and areas for improvement. Constantly adjust and refine your strategy based on your performance and the ever-changing market conditions.
I will be adding more detailed explanations and tutorials for each of the topics, later on will also create share my very own excell file with milestones which could be helpfull and usefull.
Happy trading!
May the market Gods be with you.
