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Advice to new futures trader

(2007-05-05 19:08:10) 下一個

Every futures acocunt is a margin account.
Initial overnight margin for 1 YM is about 2800 $ at the moment, so you would need a minimum account balance of 5600 $ to open a 2-contract position. However, during RTH (regular trading hours), only 1/2 of the overnight margin is required.

My advice for a beginner: Open an account with IB (minimum deposit 2000$ as far as i remember) and then use their paper trading feature (aka simulation account) before risking real money. Once you feel ready for the "real thing" increase your deposit to no more than 10.000$ and put the other money aside.

I would also strongly advise you to learn more about risk control and money management (how much to risk per trade?) before playing with real money. Otherwise the lifespan of your account will be very short.

Sound money management won't give you an "edge" to win, but it will hopefully let you survive long enough to learn enough to get profitable.

Always remember that futures trading is a zero-sum game: You can only win by taking money away from other traders. And there are people out there with years of experience and extensive knowledge of the markets.

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