Futures Market: Possible to trade for a living?

[streaming 10]

I have been looking at the futures markets for some time and can not seem to find a way to make money trading it.

 

Too erratic with not clear patterns. Is is possible to trade this market successfully?

[Lisa 10]

  streaming said:

I have been looking at the futures markets for some time and can not seem to find a way to make money trading it.

 

Too erratic with not clear patterns. Is is possible to trade this market successfully?

 

They do seem tough but some the guys in this forum seem to do fairly well trading the eminis. There seems to be a totally different concept and strategy when trading futures. Very fast, very unpredictable, and hard to use tight stops.

[Soultrader 12]

  Lisa said:

They do seem tough but some the guys in this forum seem to do fairly well trading the eminis. There seems to be a totally different concept and strategy when trading futures. Very fast, very unpredictable, and hard to use tight stops.

 

I disagree. By understanding the underlying financial instrument you are trading, you can understand the language of the market. I am stunned at the amount of times I can predict the market action based on market profile.

 

You need the ability to understand the concept of price acceptance and price rejection. The market talks to you as the trading day goes. You just need to learn how to interpret it in your own language.

 

For example: lets say the markets closed below value but during the overnight session prices were pushed back into value. The market language tells us that prices will most likely trade within or above value because there is strong buying presence below value. Once you grasp the bigger picture of market direction, then you pinpoint your entries based on that analysis.

 

Yes... the futures markets require quick fingers. Have a trading plan and follow it. This is the only way to make money trading. Good luck streaming.

[Fxtrader06 10]

Perhaps use a trading system?

 

Plus you need to open up your views. By convincing yourself that the futures markets are hard and impossible to trade, you will never be able to trade successfully. Your beliefs limits your ability.

[Piptrader 10]

Find your edge in whatever market you intend to trade. Maybe the futures markets isnt for you?

 

Stick with stocks, bonds, options, currencies, ect.. There are plenty of other markets that you can trade. Why do something you are not good at?

 

It is definitely possible to make money in the futures markets. Plenty of peopl do so. You just need to find the right opportunity. Play the good hands and when in doubt fold.

[Stockaddict 10]

Yes! It is possible to make a living at any market as long as you know what you are doing.

[TimRacette 11]

I guess this thread is a bit old, but yes I agree with stock addict, trading for a living is just like any other entrepreneurial venture, it takes a lot of hard work up front, but pays off down the road. Since it is scalable though, many fail.

[samanthasing 10]

Wow! Bringing a thread from the necropolis haha. I'm glad you did though, this is something that 99% of day traders will get hit hard by... and very few will overcome.

 

I think the advice about opening your mind is great, you can't tackle futures trading with only the problem solving tools you've used on other markets or problems, you need to be able to adapt and find niches/ patterns/ systems that are new and fit to your needs.

 

I also have noticed that more people seem to make livings from trading E-minis as well, but this may just be due to the futures traders within my immediate circle... and I wouldn't use it as a reason to not trade other contracts.

 

Ultimately, if futures trading as a career feels right to you then you should (and probably don't need to be told to) try it! However, if you think you'll never be happy and the other areas of your life suffer because of the volatile nature of it then listen to your gut and find something that does deeply satisfy you.

[Tams 20]

  streaming said:

I have been looking at the futures markets for some time and can not seem to find a way to make money trading it.

 

Too erratic with not clear patterns. Is is possible to trade this market successfully?

 

Re: Futures Market: Possible to trade for a living?

 

not only it is possible to trade for a living,

it is also possible to provide a living for others as well. (you need deep thinking for this)

[TimRacette 11]

  Tams said:

Re: Futures Market: Possible to trade for a living?

 

not only it is possible to trade for a living,

it is also possible to provide a living for others as well. (you need deep thinking for this)

 

Right on Tams, fully agree.

[MightyMouse 12]

When there is a lot of competition, it is hard to easily make a lot of money. This is a basic law of economics.

 

What one person calls a living is what another calls starvation. So, to get the output that you need to pay expenses, you'll need to have the right input. If you have the right amount of capital you can make a living trading.

 

But, given the above, I am not too sure that most people would want to get paid the way they would get paid if they were trading for a living.

 

MM

[StevenSJC 10]

Without question it's doable. The best thing about trading and the futures is you can scale up with contract size - without working any harder. Not many businesses you can scale without adding a lot of additional effort.

 

The flipside is to get to the point of making a living is going to take quite a while since that first move from being able to successfully trade 1 contract, and get to the point where you earn your way to the right to trade two is by far the toughest.

 

I believe it takes multiple contracts to really make it so just be prepared for that 1 to 2 being the longest road. After that it gets easier.

[TimRacette 11]

IMO moonlighting is the way to go. That is go ahead and keep your day job, but begin to learn about trading and how the markets works in the evenings and on the weekends. For people completely new to trading I always think it's a good idea to start with a copy of the investors business daily newsletter and pick a few stocks to follow for a month to get a sense of how they react. It's typically easier to go from longer time frames down to smaller ones (day trading being the most difficult) so starting by placing trades off the daily time frame is a good option.

 

As you begin to develop a system and framework for your methodology and begin to see results it's enticing to want to trade full time. If it's something you really want to try I'd suggest scaling out of your job in a way that allows you to do both, perhaps work two days a week (Mon and Fri) and trade Tues, Weds, and Thurs. The markets will always be there so there's no sense rushing into it.

 

There's a lot that can be said for traders who have all their expenses covered and don't need their trading accounts to pay the bills, at least at the beginning.

[Tradewinds 12]

  streaming said:

I have been looking at the futures markets for some time and can not seem to find a way to make money trading it.

 

Too erratic with not clear patterns. Is is possible to trade this market successfully?

 

• Yes, there many ways to trade successfully
  
• The very small percentage of people who do make money, may not tell you how they do it.
  
• Time and Money is needed.
  
• The odds you will be successful are extremely low.
  

 

To expand on those points: Those who do make money trading will tell you that it's possible. They may or may not tell you how difficult it is, how long it will take, or what your chances are of becoming successful. Most of the people who actually make money trading, will probably never tell you all the specifics about how they do it. Even if they did give you all the specifics, you might not execute it correctly. You could get a strategy that could be profitable, and not have the internal discipline to actually implement it.

 

You might run out of both time and money before you figure it out. Even those people with massive amounts of resources to put into trading may never figure it out. There may be an extremely few amount of very exceptional people who are able to take a small amount of money and make it work. But the odds are very low that will happen. Anyone who is not willing to accept and deal with these realities, is probably doomed right from the start.

[TimRacette 11]

Master the principles and your methodology on a small account first become increasing your size. If you trade too big to quick, you just end up throwing money down the toilet. As Trump and other millionaires/billionaires of the world always say, you're first million is the hardest.

[evancds 10]

The thing about futures is the cost to enter is high for someone just starting out. Intraday/Overnight margin requirements, min account size, min position size. Limited demo time on data feeds unless you have a funded account. I suggest you get a forex demo (which last indefinitely) and learn auction market theory/market profile, price action, supply and demand, etc. Then (6months to 3yrs depending on how much time you have) open a futures account and sim trade until you are profitable for 2 or 3 months. Start trading live with 1 or 2 contracts and gradually increase your size. Yea, it's a lot of work, but the journey is the reward.

[Southern Sandman 10]

I think it is possible. But it takes money to make money, so you need a pretty big bank roll to start.

 

And you need a viable strategy. The ones I've seen that you can buy aren't worth a squat.

 

Beyond that you need balls of steel.

 

Ultimately, a strategy you make yourself will be best, because you'll trust it.

 

I have mine & have been testing with real money for some time. To be sure I'm still testing it. I am unwilling to give it away, sell it or divulge it to another living soul, so don't bother asking.

 

Best to specialize in one market, and spend a very long time with a sim account. I don't think many appreciate the value of doing that, trading under real conditions without the risk. That's what I did/do.

 

Big Mike's is a hugely valuable resource for tools and ideas, and an "elite membership" there was the best $75 I ever spent. My methods are completely based on what I found there.

 

Those are my thoughts on the matter.