Futures Trading is not for everyone. While I would like to promote this investment option to everyone, I'm afraid that your success or failure in Futures trading depends very much on your own attitude. Some people approach it as a skill to master. Others view it as a game/risk which gives them a rush similar to gambling.
Thus, although I would like each and everyone I meet to learn how to trade futures, I am always afraid that I would land myself a client who has the potential to self-destruct when faced with the possibility of making huge profits. Some people are very cautious with money and do not take any risks that are beyond their means. Others risk more than they can afford to. But the fact remains. It is possible to make huge profits from futures. But it is also possible to make huge losses from it.
Now, if you are a pessimist, you will only see the risk of losing money which will discourage you from doing anything. On the other hand, if you are a gambler, you will only see the potential for making huge profits and completely ignore the risks. The best way is to look at both the advantages and disdvantages to see if there is a way to maximise your potential and minimise your risk. Well, the good news is you have a choice. You can choose to take big risks with your money, or you can take small risks. And the best thing about it is that you can learn more about your own attitude when faced with real life trading situations. This is possible through Paper Trade. Have any of you ever heard of it ?
Paper Trade is when you have access to the market but do not trade for real. Instead, you just study the price movement and record your own buy/sell order on paper instead of keying the order for real. This way, you can see how much profit/loss you can make without actually risking real money. All you need is to subscribe to a charting software which is available at any Futures Company. You may have to pay the minimum amount of RM5000 (FKLI) or RM6000 (FCPO) as deposit which will be fully refunded to you once you close your account, since you did not trade for real. However, you will need to pay for the monthly subscriptions to the charting software.
If you are not willing to risk your money, you can have as much practice as you need through Paper Trade. Once you are able to make a steady profit every month, then you are ready to trade for real. On the other hand, if you find that you keep losing thousands and thousands of dollars worth of (non-existent) money, then futures trading is probably not for you. Either way you come out of it a winner as any new knowledge and skills that you have acquired is never a waste of time.
Next, I will show you how my paper trades look like, on a good day.. and on a bad day !!!!
