Tuesday, 22 January 2008

Futures Trader Faces Uncertain Future

The Markets across the world have been racing against each other to see which market can lose more of its value!

In the meantime, some traders have been losing serious amount of their hard earned capital.

Normally, volatility in the stock market can be considered as a great opportunity for the experienced traders to make vast amount of money. This is more so when trades are being struck on margins i.e. trading CFDs, futures etc. Leveraged trading has its disadvantages too, as it was brought to my attention that this Futures Trader lost most of his capital on a trade position he opened last Friday before the US Market closed.

When I read about his losses, I really felt his pains -- we traders do really have a lot of sympathy for other traders, as "trading the stock markets successfully" requires enduring a lot of pains and lonely days sitting behind a screen to master.

To try to avoid financial disasters like the one happened to our colleague trader, traders must be very vigilant in such market environments of the recent days. Money Management is the absolute "must" - risk and reward must be precisely measured before a trader commits himself to opening a new trade - all trade positions must be closed before the end of the market on the same day, unless a trader trades with unlimited amount of margins!


Anonymous said...

wow feel sorry for that futures guy who lost his lot. Makes my $10000 loss in 1 week pale in comparison I guess. But I know how he feels nonetheless. Hey update your blog to..

Rod said...

Sorry about your losses too. But it has happened to all of us before - w/o getting wiped out, you just cannot become a good trader - how many racing drivers are there who have not written off 1 or 2 cars in their careers?

Money management is the absolute thing in this game. So please keep it in mind at all times and I really wish that you would get your money back soon. Don't try to get it back all at once, the market is very choppy at the moment as you know.

All the best.


PS- Please, let us know when you recover your losses.


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