The purpose of All About Futures: The Easy Way to Get Started is to teach you enough about the futures markets and its rules so you can protect yourself. However, this knowledge is not a guarantee that you won’t get wiped out. The market has a will of its own. Never forget that! If it moves violently against your position, you’ll get burned.
The futures market is a zero-based market. At the end of each day, the books are balanced. For every buyer, there is seller. For every seller, a buyer. That means one side wins and one side loses—every day. And every day, the losers must pay the winners in the form of margin money or reduced equity in their trading account.
Some days you’ll win. More often you’ll lose. Your objective is to be a net winner in terms of dollars invested. The risk may be heavy, but the possibility of reaping very large profits over very short periods of time attracts the aggressive investor. Futures trading is not for everyone, but careful study will give you an excellent overview of futures and options on futures. This will help you decide if futures trading will assist you to reach your financial goals; and if so, how you go about entering the markets, what alternative approaches are available to you, and how you can develop strategies to reduce or control risk.
Futures, by definition, are securities that provide protection against future price fluctuations. But it is the futures tradersindividuals who seek only to profit from those price fluctuationswho create the volume necessary to drive the marketplace. All About Futures is for those traders. Today’s most straightforward, honest explanation of the potential rewards and risks of futures trading, this all-in-one futures trader’s toolcomprehensively revised and updateddescribes everything you need to know to:
- Understand the futures contract
- Know the types of orders and their uses
- Learn technical analysis concepts
- Locate the right broker
- Develop your own trading system
- Trade options on futures contract
- Master electronic day trading
- Employ arbitrage
- Trade profitably in up, down, and sideways markets
- Is Futures Trading for You?
- Understanding the Basics for Futures Trading
- Setting Goals and Creating a Portfolio
- Placing Trades and Working with a Broker
- Overview of Some of the Active Markets
- Understanding Analysis
- Breaking into Futures Trading with Options
- Developing Your Own Trading System
- Using Advanced Trading Strategies
- Giving Trading Discretion to Someone Else
- Knowing Your Rights and Recourse as an Investor in the Futures Markets