Futures trading for profit is the goal of every speculator. Hedgers trade for price protection. Trading futures is at best difficult and without a doubt takes experience to do it successfully. Today, there are many good books on trading and they should be studied. Also, a new trader has to quickly get rid of the buy and hold strategy that is prevalent in stock trading.

A futures trader must learn to trade both the long and short side of the market. It is impossible to be a successful trader by always being on the long side. There are always times to buy and times to sell.

Another rule for a trader to follow is to never take on too many positions. A position larger than your bankroll can afford is a recipe for disaster. Because the total funds available for trading are limited, trade well within your fund level. This is an amateur mistake and will be costly in the future. This naive trader may well get away with violating this rule, but it will finally catch up with the trader and give them a significant loss.

A new trader should have an experienced commodity broker at the beginning to guide them and keep them out of trouble. Futures trading experience comes at a high price, and a broker's experience may keep the new futures trader in the black. One book that should be read by all traders is, ?Reminisces of a Stock Operator.? This is a fictional account of the life of Jesse Livermore.