More “Futures Fever”
Posted on December 23rd, 2006
Written by Richard
Posted in: N/A (old archives)
I mentioned in my last post on the topic that Ugly took a hit trying out futures. Now, it looks like Phileo caught “futures fever” and took a bigger loss than he wanted.
Phileo’s smart, and will recover stronger for it. In a way, this is the best outcome when you lose sight of proper risk management (which has happened to all of us at least once in our careers). Imagine what might have happened had the trades gone his way… He might have made a big happy post about how he made. — oh, let’s say… — $8k in a day, and kept on placing bets that were too big for his risk appetite.
So, please, everyone, be careful when jumping into a new, zero-sum, high-leverage game. To some degree, trading is trading. But, ask yourself, are you rushing to futures because you have visions of huge, easy gains in your head? Maybe wait until you’ve calmed down a bit. You need a level head in any market! I’m not saying, “don’t try futures”… I plan to add them to my trading in the next couple years, in fact. Just don’t try them because you are excited about money money money.
On the positive side of the coin, I should point out that CalTrader made an excellent post about one of the types of plays he likes to make. I hope he makes more posts like this, and in particular I would like to hear about in-trade management.
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.