I cannot stress enough the importance of money management and risk control when trading the futures markets. The volatility and volume that is required to make for a successful trade can also be the bane that destroys an account. The first critical mistake many traders make is NOT trading with a plan. Each trade needs to have a beginning, a middle and an objective. The first rule of trading is to keep your risk/reward ratio at 3:1 or higher. The second rule is to determine at the onset how much risk capital you will dedicate to the position or at which point will you exit because you are wrong the market or the timing of your entry. Take the small losses. If it turns out you were right the market, re-enter at a more advantageous price and time. Many traders place an order that I call, “cancel if close”. Stops are placed and when the market gets close to filling that stop, they pull the stop because they really do not want to take the loss. Absolutely wrong. Part of trading is taking losses. Those losses are part of money management. Leaving your with sufficient funds to continue on to the next trade.
Series 3 Licensed
Senior Market Strategist
Laura began her career in the financial industry in 1981. In 1985 Laura and some former colleagues developed and organized a new IB division at Index Futures Group. With a partner, she named the division (Brokers Resource Corp.), developed the client base and supervised a staff that serviced guaranteed and non-guaranteed IBs located across the country. She developed the in-house procedures manual and conducted on-site compliance audits. I was also one of the original co-founders of the National IB Association (NIBA) and hosted the very first NIBA conference in Chicago.
After Index Futures Group sold their IB division Laura stayed on to manage the new accounts department as vice president of operations and then became their director of compliance. In 1996, as part of ED&F Man, Laura decided to venture into a new role in the commodity industry by putting her AP license to work by developing a client base as a commodities broker. Laura joined RJO Futures in 2011 where she enjoys being a senior commodities broker assisting clients with their trading decisions, the execution of their trades and specializing in automated trading for newsletter and hotline subscribers.