Monday 3 October 2011

Leverage

The Futures Market is considered a high-risk investment due to the Leverage factor. But with high risk also comes high rewards. In other words, with a small outlay of capital, you have the ability to make huge profits but there is an equal chance of making huge losses too.

However, it is possible to become a successful trader by adopting the right trading strategies that will help you maximise your profits and minimise your losses. Let's look at  the following logical process :-

without a trading strategy,
-the probability of profit is EQUAL to the probability of loss,

with a trading strategy (maximise profit and minimise loss)
- the probability of profit is MORE than the probability of loss

As such, there are many trading strategies you can adopt that will help you become a successful trader.

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