87% or more individuals who trade commodity futures and options lose money doing so. Learn about Four of the Biggest Mistakes in Trading Futures to steer clear of so you can avoid becoming a statistic.

The Four Biggest Mistakes in Futures Trading

87% or more individuals who trade commodity futures and options lose money doing so.

Learn about Four of the Biggest Mistakes in Trading Futures to steer clear of so you can avoid becoming a statistic.

The majority of future traders make one or more of these grave mistakes which cost them losses beyond their profits. The failure rate among commodity future traders is staggering. If this is the case, then…….

Why does anyone go to the trouble of trading futures in the first place?
What causes such a high failure rate among individual investing in futures?
Is there any way to avoid these catastrophes?

This book will help you trade futures profitably by showing you how to identify and avoid making four common mistakes that can derail your plan and reduce your profits. Following on the heels of his original bestseller, The Four Biggest Mistakes In Option Trading, system developer Kaeppel now focuses his attention on the volatile futures market and shows traders how to trade these markets to their advantage. In Kaeppel's quick reading style you'll learn how to assess whether you are financially and emotionally ready to trade futures. Determine how much money you can afford to risk. Learn what leverage is and how it can be used to generate above average returns without exposing yourself to too much risk. Understand why "fearing" the market is better and safer than downplaying risk. Now steer clear of trading missteps and learn how to trade more profitably trade after trade with Kaeppel's winning strategies.

"Veteran trader Jay Kaeppel describes the opportunities and challenges of futures trading with easy grace and engaging wit. After exploring the risks and rewards, Kaeppel shows how the average trader can succeed in futures by embracing four key principles of trading mastery."

-Nelson Freeburg, Editor/Publisher
Formula Research newsletter

The Four Biggest Mistakes in Futures Trading

some topics discussed are:

Why So Many Fail
What Sets Futures Trading Apart

MISTAKE #1: LACK OF A TRADING PLAN
The Recipe For Trading Success (That Nobody Wants To Hear)
The Litmus Test
How Much Capital Will You Commit To Futures Trading
What Market or Markets Will You Trade
What Type of Trading Time Frame Is Best For You
What Type of Trading Method Will You Use
What Criteria Will You Use To Enter a Trade
What Criteria Will You Use To Exit A Trade With A Profit
What Criteria Will You Use To Exit A Trade With A Loss
A Word Of Advice: Adhere to the Four Cornerstones
Go With The Trend
Cut Your Losses
Let Your Profits Run/Don't Let Big Winners Get Away

MISTAKE #2: USING TOO MUCH LEVERAGE
What is Mistake #2
Understanding Leverage
Why Do Traders Make Mistake #2
How To Avoid Mistake #2
The Role of Mechanical Trading Systems
Determining The Amount of Capital Required
Single Market Factor # 1: Optimal f
Calculating Optimal f
Single Market Factor #2: Largest Overnight Gap
Single Market Factor #3: Maximum Drawdown
One Caveat to Analyzing Trading System Results
Arriving at a Suggested Dollar Value Per Contract
Arriving at an "Aggressive" Suggested Account Size
Arriving at a "Conservative" Suggested Account Size
Arriving at an "Optimum" Suggested Account Size for Your Portfolio

MISTAKE #3: FAILURE TO CONTROL RISK
What is Mistake #3
Why Do Traders Make Mistake #3
How To Avoid Mistake #3
Risk Control Method # 1: Diversification Among Different Markets
Risk Control Method #2: Diversification Among Trading Time Frames and Methods
Risk Control Method #3: Proper Account Sizing
Risk Control Method #4: Margin-to-Equity Ratio
Risk Control Method #5: Stop-Loss Orders
Placing a Stop-Loss Order In the Market Place
Using Mental Stops
Not Using Stop-Loss Orders At All
The One Important Benefit of Stop-Loss Orders

MISTAKE #4: LACK OF DISCIPLINE
What is Mistake #4
Why Do Traders Make Mistake #4
How To Avoid Mistake #4
Overcoming The IQ Obstacle
A Word of Advice: Don' t Think, React
Avoid Simple Traps
The Cure for "Woulda, Shoulda, Coulda"
System Development versus System "Tinkering"
Asking The Right Question

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