Finding The First Trade

Once you’ve put in the basic setup work and you understand how the markets operate and (more importantly) how you make money from the transaction, it’s time to think about your first trade. No matter what instrument you’re trading, your first trade should always come after a lengthy period of research, as indeed should every trade you ever make if you’re looking to be successful.

Think about current economic goings on or industries with which you have some familiarity as a starting point to narrow down the field of possible targets. From there, you want to look at technical data and the underlying health of the relevant asset or class in order to determine whether it holds the possibility of delivering a profitable transaction. By searching for prices that are moving or have the potential to move, you should be able to soon identify a solid, strong company with short-term positive prospects – the ideal target for a long futures position.

Trading futures successfully is more of a marathon than a sprint, and the groundwork you lay now will serve you well for years to come. By establishing the basics of the trading process and beginning to develop your own outlook, you should hopefully be in a position to start seeing your futures transactions deliver a profit.

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