FOREX TRADING

Can you really make money day trading futures? The answer, of course, is yes. The answer is only yes, if you know what to do and then you take action upon what you know.

Making money day trading futures is like making money trading in any financial market. It all starts with having a plan, and then executing the plan to the letter in order to make profits.

I believe what throws many people off when it comes to day trading futures is the fact that some are unfamiliar with futures contracts and their characteristics. This, of course, should not deter one from exploring the possibilities of profits in day trading futures. The fact of the matter is that you don't need to know every possible thing about every possible futures contract in order to make profits in trading futures.

Many futures contracts happen to be excellent vehicles for day trading. Again, it is not imperative that you understand everything about every futures contract in order to profit in day trading futures. I'll give you an example. What if everyone had to know the intricacies of the internal combustion engine before they drove a car? If that were actually the case then very few people would drive... yet there are millions of people driving cars every day. I only say this to illustrate the fact that you need to know a certain number of basic things in order to trade in any market successfully. A simplified list of those basic things would be as follows, when to get in, when to get out, and when to stand aside.

It is true that the above list may seem overly simplified. You will of course need some method to determine when to take the steps above in order to be successful. Your method will have to be one which is repeatable, therefore it will require some research on your part.

You'll need a day trading strategy in order to day trade futures successfully. You have the choice of either developing your own day trading strategy or looking for a commercially available day trading strategy. In any case, you will want to do your homework and due diligence, because in order to make money day trading futures your day trading strategy must be a good one. And remember that your level of discipline in following your day trading strategy is at least as important as the day trading strategy itself.
The Forex Trader’s Bill of Rights (2007) is a non-fiction book about the foreign currency trading market, published by OANDA_Corporation. It is primarily a call to arms for currency traders to call for greater transparency and accountability within the market. The overleaf provided with the printed version of the book states: “Big banks and confederated brokerages have overcomplicated forex: trading costs are inflated, unnecessary risk abounds, and the system is grossly unfair.” Essentially, the book elaborates on this premise, detailing ways in which traders are being unfairly treated and encouraging them to take action.
OANDA is a company that provides currency trading tools for investors, travelers, and businesses. As such, there is an unavoidable marketing aspect to this publication. However, OANDA is not mentioned throughout the book. There has been a clear effort to maintain a relatively neutral point of view. The back cover does state “OANDA is a leading provider of online currency trading…FXTrade…enables all currency investors to change the way forex trading is done”.
The authors believe currency investors have 10 basic rights which are being violated: each short chapter deals with one of these rights. They are:
1. The right to immediate, uncensored access to the marketplace
2. The right to trade real spot
3. The right to know
4. The right to trade whenever you want
5. The right to equal treatment
6. The right to choose and manage risk
7. The right to understand cost
8. The right to learn – on your own, or through free exchange with other traders
9. The right to full disclosure
10. The right to pay and receive interest
1) The right to immediate, uncensored access to the marketplace Chapter one argues that when trading traditionally (with banks etc.,) execution and price are affected by who you are (size of your order/ relationship with your market maker etc.), the amount of greed on the part of the market maker, and manual intervention which can delay the trade. The chapter calls for transparency, fairness, and efficiency for traders from market makers.
2) The right to trade real spot
Chapter two addresses unnecessary delays in settlement of trades, which according to the authors increase risk for investors.
3) The right to know
The third chapter states that market makers share information based on who you are: in some cases they share information that should not be shared; in other cases they do not share information that should be publicly available. This leads to an unfair advantage.
4) The right to trade whenever you want
The chapter asserts that market makers may advertise 24 hour trading but they close the books on Friday. However, world events which affect currency price occur on weekends. The argument continues that since the technology for 24/7 trading is available, it should be offered by all market makers.
5) The right to equal treatment
Chapter five argues that every trader should be given the same price and spread, and that market makers should not discriminate between traders.