What's the Secret Highly Profitable Traders Possess in Futures Trading That You Don't?

Let me first say that if you read all the hype that websites spew on their profits it would lead one to think that futures trading is like owning an ATM machine. You simply need to push a button and money comes shooting out. Futures' trading is not a "get rich" quick proposition; on the contrary, futures' trading is a tough business and it takes time, experience and extraordinary patience to succeed. Having said that, the prepared trader can earn substantial sums with a bit of determination and perseverance; if you approach the business with that attitude you just might succeed.

Before I lead you on about some "secret" I have to admit there are no secrets to successful trading. There are, however, some important traits that all successful traders I have known share. Like many things, the successful trader of today works in much the same way the legendary traders of years past. A successful trader possesses a specific skill set honed by experience and trading wisdom and is a constant student of futures trading. Believe me; you will never know too much to trade successfully.

Consider these traits when considering a career in trading:

1. Determination. You are going to have days when you lose trades; sometimes you are going to have days when you lose more trades than you win. The ability to learn from your losses is paramount to your success. Trading knowledge is learned in small bits from education and reading charts and the more you have of these two commodities the better you will become. If you can't accept losing you will not succeed in this business.

2. Trading Technique. Great traders stick with a specific futures trading methodology and avoid mechanical systems for generating potential trade entries and exits. The market is an ever changing animal and if you are relying on a one-size-fits-all mechanical trading system the market is going to leave you in the dust. Great traders work with real-time indicators, especially short term traders like scalpers. Lagging indicators work fine for swing trading, but are problematic for short term traders.

3. Experience. You are not going to read a couple of books and tear the futures market up, it just doesn't work that way. The old timers told me that you need 10,000 hours of chart time to be worth your salt. I think technology and futures trading education has shortened that time horizon considerably, but experience is valuable and chart time is a must.

Learning to trade is a process and if it suits your personality type the three attributes outlined above will serve you well. Don't lock yourself into a mechanical system, be a trader "for all seasons."