How Can You Manage Risk When Trading Futures?

How Can You Manage Risk When Trading Futures?
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    Because trading futures involves highly leveraged transactions, futures traders often cite managing
    risk as key to their long-term success.
    So before you ever make a trade, develop a plan for risk management, and be sure to address
    your risks from the account, the portfolio and the trade level.
    At the account level, keep a close eye on your "margin-to-equity" ratio.
    To calculate yours, divide the total margin requirements for all of your open contracts
    by the total value in your account, otherwise known as your account equity.
    For example, if your account is valued at $100,000 and the margin requirements on your
    open contracts are $30,000, then your margin-to-equity ratio is 30%.
    The higher your ratio; the higher your risk.
    While there is no magic number, by keeping your margin-to-equity ratio below 30%, if
    your positions move against you'll have a larger cushion available to help cover your
    margin limits before you have to meet margin calls or be sold out.
    At the portfolio level, you'll want to diversify your positions among markets where price movements
    aren't correlated.
    For example, soybeans, gold and crude oil typically trade independently of one another,
    while the 5-year, 10-year and 30-year treasury bonds tend to move in tandem.
    As you diversify, make sure you fully understand how markets you are considering move, trade
    and correlate to the other positions in your portfolio.
    Many traders choose to only risk a very small percent of their trading capital on any given
    trade.
    This allows them to weather a string of sequential losses and still have sufficient capital to
    continue trading.
    A good approach is to start small, develop your strategy and build confidence.
    Additionally, using stop losses is a simple way to give yourself an opportunity to close
    out he contracts that turn against you before they negatively impact your ability to continue
    trading.
    For additional information on trading, check out the Learning center on schwab.com.
    Mondays are hard. Loving Frank is easy. #TradingSpaces #BehindtheScenes من #ادلب الخضراء أكبر مُعَمِر في الشمال السوري ١١٧ عام هل سمعت عن شخص في تعدى هذا السن ؟ "TRANSCRIPT: On the morning of September 11, 2001, 19 men armed with boxcutters directed by a man on dialysis in a cave fortress halfway around the world using a satellite phone and a laptop directed the most sophisticated penetration of the most heavily-defended airspace in the world, overpowering the passengers and the military combat-trained pilots on 4 commercial aircraft before flying those planes wildly off course for over an hour without being molested by a single fighter interceptor. These 19 hijackers, devout religious fundamentalists who liked to drink alcohol, snort cocaine, and live with pink-haired strippers, managed to knock down 3 buildings with 2 planes in New York, while in Washington a pilot who couldn't handle a single engine Cessna was able to fly a 757 in an 8,000 foot descending 270 degree corskscrew turn to come exactly level with the ground, hitting the Pentagon in the budget analyst office where DoD staffers were working on the mystery of the 2.3 trillion dollars that Defense Secretary Donald Rumsfeld had announced "missing" from the Pentagon's coffers in a press conference the day before, on September 10, 2001. Luckily, the news anchors knew who did it within minutes, the pundits knew within hours, the Administration knew within the day, and the evidence literally fell into the FBI's lap. But for some reason a bunch of crazy conspiracy theorists demanded an investigation into the greatest attack on American soil in history. The investigation was delayed, underfunded, set up to fail, a conflict of interest and a cover up from start to finish. It was based on testimony extracted through torture, the records of which were destroyed. It failed to mention the existence of WTC7, Able Danger, Ptech, Sibel Edmonds, OBL and the CIA, and the drills of hijacked aircraft being flown into buildings that were being simulated at the precise same time that those events were actually happening. It was lied to by the Pentagon, the CIA, the Bush Administration and as for Bush and Cheney…well, no one knows what they told it because they testified in secret, off the record, not under oath and behind closed doors. It didn't bother to look at who funded the attacks because that question is of "little practical significance". Still, the 9/11 Commission did brilliantly, answering all of the questions the public had (except most of the victims' family members' questions) and pinned blame on all the people responsible (although no one so much as lost their job), determining the attacks were "a failure of imagination" because "I don't think anyone could envision flying airplanes into buildings " except the Pentagon and FEMA and NORAD and the NRO. The DIA destroyed 2.5 TB of data on Able Danger, but that's OK because it probably wasn't important. The SEC destroyed their records on the investigation into the insider trading before the attacks, but that's OK because destroying the records of the largest investigation in SEC history is just part of routine record keeping. NIST has classified the data that they used for their model of WTC7's collapse, but that's OK because knowing how they made their model of that collapse would "jeopardize public safety". The FBI has argued that all material related to their investigation of 9/11 should be kept secret from the public, but that's OK because the FBI probably has nothing to hide. This man never existed, nor is anything he had to say worthy of your attention, and if you say otherwise you are a paranoid conspiracy theorist and deserve to be shunned by all of humanity. Likewise him, him, him, and her. (and her and her and him). Osama Bin Laden lived in a cave fortress in the hills of Afghanistan, but somehow got away. Then he was hiding out in Tora Bora but somehow got away. Then he lived in Abottabad for years, taunting the most comprehensive intelligence dragnet employing the most sophisticated technology in the history of the world for 10 years, releasing video after video with complete impunity (and getting younger and younger as he did so), before finally being found in a daring SEAL team raid which wasn't recorded on video, in which he didn't resist or use his wife as a human shield, and in which these crack special forces operatives panicked and killed this unarmed man, supposedly the best source of intelligence about those dastardly terrorists on the planet. Then they dumped his body in the ocean before telling anyone about it. Then a couple dozen of that team's members died in a helicopter crash in Afghanistan. This is the story of 9/11, brought to you by the media which told you the hard truths about JFK and incubator babies and mobile production facilities and the rescue of Jessica Lynch. If you have any questions about this story…you are a batshit, paranoid, tinfoil, dog-abusing baby-hater and will be reviled by everyone. If you love your country and/or freedom, happiness, rainbows, rock and roll, puppy dogs, apple pie and your grandma, you will never ever express doubts about any part of this story to anyone. Ever. This has been a public service announcement by: the Friends of the FBI, CIA, NSA, DIA, SEC, MSM, White House, NIST, and the 9/11 Commission. Because Ignorance is Strength. Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail Filed in: Videos" Making $612 Trading Stocks Today | How To Day Trade Stocks For Beginners: https://www.youtube.com/watch?v=4htmBfieSLg ICYMI: More Than $11 billion Berkshire Hathaway's Portfolio Open To Short-Term Trading Risk Today I raised the chronic underfunding of Trading Standards from the frontbench as part of Housing, Communities and Local Government questions. "I think a maize trading company would help farmers more than vertical integration... My 200 LB trading buddy... 197 lbs of heart, but only 3 lbs of brain... His name is Bentley. :) Fun news! Saddle up did a super cool issue on Equine Artists of BC and Alberta, and I, along with an amazing group of others are featured, so check it out this month! And, I was recently accepted into the Federation of Canadian Artists which is pretty darn amazing to me! And...I am coming over to Vancouver Island November 17-18 to hang out on Saturday at The Trading Post Tack Shop in Cassidy for their customer appreciation days....come stop in, say hi and grab a super amazing cool gift bag that just MAY have a familiar image on it...😜 AND I'm considering doing a one day acrylic Paint Your Heart Horse Workshop if any of you Islanders are up for it! Any of you that wanted to bring you painting from the workshop in Merritt we did to tweak, please do! I'm working out a location, but it would be a full day of fun, learning, and play! Shoot me a message or just comment and I'll get in touch! Thanks guys, and hope to see you soon!
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