What does it take to be a great futures trader?

Question

What are the hours like?

The risks?

Pay for a trainee trader?

Answer 1

Psychic ability would help a lot. :-)

Answer 2

Dumb luck

Answer 3

To be a great futures trader, you must first research and learn a good strategy for trading these markets, and have the discipline to follow your strategy even when the going gets tough.  

To get into the business, consider an assistant trader position at a successful commodity trading advisor (CTA) business.  Campbell & Co. in Towson, MD is one such business among many.  They typically pay a trainee under $40K.  You will simply be an execution trader, learning how to execute sizable orders based on their mechanical and computerized strategies, but this is an important skill to learn.  

While working at such a firm, read all the books on trading you can, and learn about trading system development.  Then, consider purchasing a software program that allows you to backtest trading strategies on historical data. See if you can come up with your own ideas that may work.  At some point you will need to put your ideas to the test with real money.

You can also consider finding a private trader who is successful, or possibly a smaller trading firm that is showing rapid growth, so you can get in on a ground floor opportunity.

Good luck!

Scott Cole

www.kungfutrader.com

Answer 4

a crystal ball and a set of brass balls.

Answer 5

To be any type of trader and/or investor you need to have some defined plans that you must follow

1 - A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.

2 - Sufficient trading/investment capital.  Use your own money, there’s no need to go into debt so that you trade/invest.

3 - A written money management program in place. .

4 – A full and complete understanding of the rules & regulations of the industry.

Most traders, regardless of where or what they they trade all have the same makeup, (exept fixed income traders) they are above average intelligence, are good in math, have an out going personality and are not wrapped very tight.

The hours are the same as the market you are working in, most traders get in place at least a half hour before the market opens and a half an hour after it closes,

Once the market opens you have to be ready, you stop when the market stops.

The risk are great, if you work for a firm and s***w up, you're not there any more.  If you're self employed and loose, you start over of find another job

There is basically no such thing as a trader trainee, you work running tickets, doing P&S work, reconciliaions, or whatever the firm wants you to do.  The pay varies between firms, there is nothing set,

If you want to be a trader, you NEVER care about the hours, or the working conditions, or the pay, if you do, you don't want to be a trader bad enough.  If you have the opportunity to work for a firm that trades you take the job as is, and work you butt off and just do what you're told.  You can not learn when you mouth is open complaining

Good luck from someone who's been there done that