Futures trading can be an exciting yet highly complex venture. It involves the purchase and sale of contracts that require you to buy or sell an asset at a future date for a price agreed upon today. While the potential for profit in futures markets is vast, the risks are equally significant. Therefore, having a structured trading plan is essential for success. This article will walk you through the process of creating a comprehensive futures trading plan, helping you navigate this challenging yet rewarding field.
Understanding Futures Trading
Before diving into how to create a trading plan, it’s essential to have a clear understanding of what futures trading is and how it works. A futures contract is an agreement between two parties to buy or sell an asset at a predetermined price at a specified time in the future. These contracts can be made on commodities such as oil or …