Obstacles to making money trading index futures

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why trade index futures?

what does it take to trade index futures?


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Here are a just few of the reasons it ain't as easy as it looks:

  1. Psychological obstacles to profitable trading
    1. False assumptions
      1. Reliance on indicators that don't work
      2. No trading plan, or inadequate system
    2. Failure to admit when wrong before suffering loss
    3. Failure to pull the trigger
    4. Failure to take profits when available
    5. Overtrading
      1. Failure to quit when ahead
      2. Taking marginal trades
    6. Impatience
    7. Failure to let profits run
    8. Failure to wait for strong setup
  2. Technical obstacles
    1. Information
      1. Data Delays
        • exchange data inefficiencies
        • data provider problems
        • data transmission breakdowns
      2. Data Inaccuracy
        • bad tics
        • charting software glitches
    2. Infrastructure
      1. Internet breakdown
      2. Telephone service interruption
      3. Broker inefficiency or overload
  3. Mechanical Obstacles to successful trading:
    1. Order entry inefficiencies
      1. Stopped out of otherwise good trades at a loss
      2. Slippage in execution
    2. Order execution
      1. Delay
      2. Slippage
      3. Order Errors
        • your own
        • your broker's
        • software errors
        • errors at exchange
        • errors in transmission of order
    3. high commissions