Paul Davis

People often ask me what the simplest way to become a profitable traders is. I think deep down everyone already knows the answer before they even ask the question, yet they ask anyway perhaps hoping for a different answer.

I Can Show You a Trading System That Picks the Direction of the Market Correctly 60% of the Time. on Winning Trades That System Shows a Profit Twice as Large as the Average Losing Trade. Now in Anybody’s Books That is a Great System.

Futures are Highly Leveraged Investments. to ‘own’ a Futures Contract an Investor Only Has to Put Up a Small Fraction of the Value of the Contract (sometimes as Little as 2-3%) as ‘margin’. in Other Words, the Investor Can Trade a Much Larger Amount of the Commodity Than if He Bought it Outright, so if He Has Predicted the Market Movement Correctly, His Profits Will be Multiplied Compared to the Amount Deposited as Margin.

Futures Trading is a Form of Investment Which Involves Speculating on the Price of a Commodity Rising or Falling. Futures Trading is Mainly Speculative Investing, I.e. it is Rare for the Investors to Actually Hold the Physical Commodity.

The Term “money Management” is Often not Clearly Defined for Traders. the Term Can Refer to Risk, Capital Protection, Stop Loss Orders or Position Sizing Depending on Who is Using it and in What Context. All Those Topics Could Easily be Included Under the Heading of “money Management” But it is not Helpful if We Cannot Understand What our Responsibilities are When Dealing With “money Management”.