Trade with Optimum Conditions in Order to Become the Extraordinary Futures Trade
Updated: Jul 3
Unlike high-stake, long-term trades, a day futures trader buys and sells futures contracts on the same day, often taking advantage of small price moves that reap higher rewards for much less initial outlay. This can be a lucrative game, but for new day traders making rookie mistakes, it can also cost significant amounts incredibly quickly.
Considering Optimum Trading Conditions
With countless traders now choosing to learn to day trade at home, it’s especially important to consider the optimum conditions that you need to become the extraordinary trader you know you are. And, we’ve got the tips to help you achieve precisely that.
1. Arrange sufficient capital: Day trades require at least a $25,000 balance trading account. Whether from personal savings or taking the time to get funded to day trade, this kind of capital cushion is crucial for well-thought, carefully researched trades that are more likely to come to fruition
2. Understand your markets: Optimum day trades also rely on your understanding of individual markets, including trading hours, holidays, and margin requirements.
3. Choose a trading strategy: Trading strategies that cover limit orders (discussed in the video below) and realistic profits make it far easier to recognize lucrative deals, and avoid those that don’t fit within predetermined conditions.
4. Simulate your strategy: Strategy simulations on test accounts make it possible to assess, adjust, and perfect strategies that automatically improve trading conditions and overall chances at success. This tends to be the segment many new traders skip and go right into "Real" money account trading without developing a proven strategy.
It is recommended, before launching a live money account, to see consistent gains over the course of 4 - 5 weeks. This is why a prop funding firm, like Uprofit Trader, will require 10 days (2 trading weeks) of consistent trading at the minimum before obtaining a LIVE funded account.
5. Increase the stakes after tasting success: ‘Optimum’ trading conditions are typically tested conditions, highlighting the need to start small until you’ve seen results. That way, even your home-based trades stand the best possible chance of succeeding.
Before beginning any trading effort, make sure to have the proper plan in place and the resources to ensure you can survive to test, learn, and improve.
Looking for further details on what it takes to become a successful Day Trader? Check out our entire resource guide on best equipment, typical new trader questions, and even how to get funded as a trader!
Published by Day Trader Resources | Contributor / Editor: Olivia | Date: September 2, 2021 ©2021 Day Trader Resources is a ™ of Vigor Media LLC | All Rights Reserved