What is the difference between the traders that succeed and those that do not? There is no one answer, but there are a number of elements that work against us as traders. Some of them are:

1. Capital: Under capitalization or external pressure to make money. In this do or die situation traders will often feel that the market must produce ‘regular’ and ‘consistent’ profits for them or they’ll be put into a financial bind. This introduces trade psychology issues and sets a trader up for failure.

2. Emotions: Failure to learn to control emotion when faced with losses, gains, luck and indecision, which leads to poor decision making.

3. Seeking the Golden System: Failure to stick to one system. Most traders typically take a few losses and then they start trying to change things, tweak things, and then ultimately find something else. They jump from one system to the next without ever really learning the system’s rules and methodology. They think they can find a no-fail trading system right away, before they give the system a real trial. The problem with this is there are no “no-fail” trade systems and unless you truly learn the system you’ll never find success.

4. Timing: Market timing is a factor you must master to become a successful trader. This is where the majority of traders fall by the wayside.

I’m focusing on Futures as this is where I spend most of my time trading. You may have heard some of this before, but this time it will sink in. Go ahead, tell yourself. This time I will apply what I hear and learn. Ok, now that you are ready to absorb, I’m ready to teach.

Now, how many of these have wreaked havoc in your trading? Personally, I’m probably guilty of making all of these mistakes at one point or another. So, let’s focus on how to avoid these and come up with a plan and strategy to help you develop into a successful Futures Day Trader.

First and foremost, pick a market that you like or are familiar with. Keep in mind it should be one that suits your trade style. You need to make sure you have enough capital to trade that market as well. For example, if you have a $5,000 account you don’t want to start trading the ES or Oil since they are beyond 2% risk per trade on that size of an account. The NQ or Dow has smaller risk per point, so you and your account can handle a few losses without putting you on that emotional roller coaster.

You will need to test this tradeplan yourself, but some of the work can be eliminated if you choose to go with something you know works for others. It’s best to backtest the plan for at least 6 months. This will give you anticipated results, so you know what to expect when you start to trade. It is important to know, how many wins and losses in a row your market usually gives you, so that you can be prepared mentally and emotionally to trade it.

Now that you have picked a market, you create a plan. If you don’t want to create a plan from scratch, there are several resources through NetPicks to help you. You can request one from our traders/coaches, ask for additional help from a coach, or follow along in the Trade Rooms to develop your own plan based on what is traded in the room.

Next, learn how to manage your trades on the platform you will be trading live. This way you can make certain tweaks, such as perfecting your trailing stop. Remember, trade your plan, and don’t deviate from it. If you can execute 25 trades in a row with no errors then you are ready to trade live.

Notice I said 25 trades with no errors, I didn’t say 25 trades without losses. You will have losses. They are a part of trading. Expect them and get used to them. This will build your confidence, strengthen your emotions and show you that the system you have works. You can see from these 3 steps, I have covered all of the issues above.

Finally, it is time to trade the plan in the live market. This will give you the feel of the market. You’ll see how fast it moves and how it responds to news.

Now, you will make mistakes, but don’t let them stop you. Journal after each trade and then look at your results and emotions as you were trading. Learn from each one. Did you skip a trade because you did not feel good about it or that you expected the market to go the other way?If you find yourself making too many mistakes, then stop trading and reevaluate what you are doing wrong and why. Talk to a coach or mentor. You can skip a trade if it falls into the parameters of a filter in your trade plan, but if it doesn’t you know moving forward that is an issue you’ll need to work on. Everyone has been where you are now and the coaches at NetPicks are here to help make you successful.

In a nutshell, what are the keys to becoming a successful Futures Day Trader or really any Day Trader? Take these steps to heart and you will be a better trader!

1. Keep your risk low and don’t use too much margin. This will keep you in the game. You’ll be able to take the next trade after a few losses to come back positive or at least close to it.

2. Have a plan, backtest the market and then practice till you have it down cold.

3. Test the system and know the win percentage. Prove to yourself that it works before risking a dime.

4. Use that plan and backtest data to help get your emotions and psyche under control. If you know what to expect from your testing, the actual trading will be easy and much less emotional.

5. Finally, share your success and lessons with others. Give back to others, success breeds success!

Founded in 1996, just as online trading and day trading emerged, NetPicks, LLC has consistently been the gold standard in Forex trading systems.

Based in Irving, Texas, the professionals at NetPicks bring a wealth of international currency trading experience. We believe that Forex and Futures trading hold nearly limitless opportunities for those who can intelligently sort through the data. At NetPicks, our first priority is providing meaningful analyses to our subscribers-fast, accurate, dynamic information that can translate to short sell successes and long term wealth management.

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