The risk can be controlled. But the potential profits are literally  unlimited. Nat shows you how to limit risk, and maximize profit.

Is day-trading risky?

Yes. There is no way you can trade futures without risking some of your capital.

That is true of everything you do in the market. In fact there is no method of participating in the market that eliminates risk.

But some strategies are definitely riskier than others. You need to have a realistic understanding of what is at risk, and how that risk compares to other market strategies.

We believe that day-trading futures — if managed properly — poses no more risk than buy-and-hold stock investing.

In day-trading futures, some portion of your capital is at risk every time you enter a trade.

In other forms of investing — stock purchases, for example — all of your capital is at risk as long as you own the stock. And the risk is not negligible.

If you were following a buy-and-hold strategy in October 2008, for example, you lost more than two-thirds of your capital. No experienced day-trader would take on a risk of that magnitude.

Since there is always risk, even in money-market funds, you need to think about risk in a different way. Is the risk easily managed? And is the reward large enough to compensate for risking your money?

Here is how it works for day-traders.

 

 

Managing risk

Nat spends a lot of time showing her members how to reduce risk. She is a conservative discretionary trader, which means she thinks preserving your trading capital is more important than making a profit on every trade.

So she shows members detailed methods of using stop losses and position sizing to control their exposure.

In addition, futures trading has one advantage that makes it inherently safer that stock trading. It is just as easy to sell a falling market as it is to buy when prices are rising.

When the market is dropping, especially if it is dropping fast, retail stock traders have only one defence: they can sell out and wait for the market to reverse.

In contrast, futures traders love falling markets, because they give the fastest profits. We can easily short when markets are dropping, and get long when they are going up. We don't care which way the markets goes, as long as it moves.

Next: maximizing profits

Maximizing rewards

In stock investing, if your stock goes up $1, you make $1 a share; if it goes down $1, you lose $1 a share. Your risk/reward ratio is 1:1.

And to get that $1 profit, you have to have your entire investment in the stock at risk; If you own 100 shares of Bank of America, then yesterday (at the time of writing) you had $1,650 invested in that stock. One day later, it was worth $1,475.

It went down $1.75 per share, and your loss was $1.75 per share. Risk/reward 1:1

No futures trader would accept those odds. We look for a risk/reward ratio of at least 1:3, and sometime much more. And we put much less money at risk to get it, because the market allows us to use leverage.

The margin required to day-trade one contract on the S&P 500 e-mini futures market is about $500. If the market moves 1 point in your favor, you make $50, less about $5 in commission.

If it moves 10 points in your favor -- not unusual in a market where the average daily range is currently 12-14 points -- your margin is still $500, your commission is still $5, but your profit is $500. That's leverage.

And there is literally no upper limit.

As one of Nat's members remarked: "If you can make $70k a year doing this, you can make $270k. It is just managing your position size."

But if the market moves against you, don't you lose $50 a point?

Yes. Which is why it is so importat to manage your risks. You make money by cutting your losers short, and letting your winners run. Nat can show you how to do that.

Next: So why doesn't everybody do it?

So why doesn't everybody do it?

It is not as easy as it sounds. In fact about 90% of people who try futures trading lose money the first time.

If you try to trade the futures market without proper training, and without expert advice, you will almost certainly lose money.

So don't try to do it alone.

And don't try it if you have trouble making decisions, or if you don't want to pay close attention to your investments.

Buy-and-hold is a passive investment strategy. Once you have given your broker the money and placed the order, you don't have to do much of anything.

In three months, or six months, or a year your broker may suggest changes; sell some of this, buy some of that. But you can ignore the whole business for a long, long time. It is worry-free ... until something nasty happens.

Futures trading requires your active participation. You have to make a lot of decisions, every day or every week.

Making decisions is stressful. Most people would rather avoid the stress, even though it is likely to be damaging to their financial health.

So if you have trouble making decisions, or if you just don't want to be bothered about your investments, don't do this.

But if you want to take control of your finances, and learn how this can change your life for the better, take the next step. Hit the Register Now button and complete the form.