Trader Notes. Part 3. Futures, currency and big bucks in trading

2 min readJul 23, 2021

Many beginner traders want to engage in trading futures as soon as possible as this exact instrument normally generates the biggest revenue. Newbies notice that professional traders reap the biggest profits from these tools. However, not many of them understand how much riskier trading futures and currency is for the capital. Some of the complexities and risks are the following:

· Higher stops and gappings (with a chance of having no stop-loss at all)

· Dependence on numerous indicators (such as S&P 500, oil and other market indexes)

· Strong and usually unpredictable response to news, market fluctuations, etc.

In other words, with bigger profits come higher risks and responsibilities. This rule works in every sphere of life.

To fruitfully trade futures and currency, you should have certain skills and traits:

· Be perfectly disciplined

· Read the DOM like an open book

· Understand price trend line and notice inefficiencies in it instantaneously

· Be an advanced trading platform user

· Understand price correlations and dependence of your tools on news, indicators, etc.

Besides that, deposit and drawdown should go along with higher risks. It is important that deposit be formed with your own effort basing on trading experience instead of being funded from your own purse. Professional traders do not tolerate self-assured beginners and take advantage of them to affect the price level skimming their money and kicking them out of the market.

To make a profit on a stock market a trader has to stay one step ahead of his competitors. He has to have special skills and competences, be faster and more attentive, keep control of his emotions. All the money circulating on the stock market belongs to different players — there’s no way they will give it away so easily.

For this reason, beginner traders hone their skills by initiating spread, trading stock and mastering other operations that imply smaller losses.

Trading futures and currency is gainful but it implies a higher price for every mistake. For this reason, to trade the tools profitably every trader should follow the steps of development described in this series of articles.