Happy Friday, Daily Direction readers!
We’re nearing the end of another week, so it’s time to focus on a key part of my trading technique that can help you improve your futures trading skills.
One of the most common questions I get from students when I teach is, “How do I locate the best futures broker?”
First, the “best futures broker” is a subjective term. Different brokers offer different benefits. And depending on a lot of factors, any one of them could be the best one for you.
Not all brokers are made equal, though. Some brokerage services will be more effective than others in assisting you in achieving your trading objectives, depending on your trading approach.
Questions To Ask
A futures broker negotiates contracts for the selling of goods or securities at a defined price on a fixed date in the future. Futures brokers typically earn a basic salary as well as a commission based on transactions.
Now, the next question is, how does a futures broker make it simple to buy and sell contracts without being a producer or manufacturer?
When looking for a futures broker, you need to ask them a lot of questions:
Are You Regulated? If Yes, By Who?
Any investor who takes the opportunity to trade with an unregulated broker is taking a significant risk. When you choose a properly supervised broker, you are safe from abuse and theft, which is crucial in case something goes wrong. That definitely falls under our desire to minimize risk at all costs!
Do You Reside in the Same Country?
For this question, you have to take note if you have a broker outside of where you live. A broker that isn’t in your country of residence could deny you your rights as a trader, compared to a broker from your home nation that is obligated to follow the laws and regulations of your country.
Do You Have the Right Technology?
You’ve got to know if you can trade through them online or on your smartphone for convenience. Do they have an app you can download that can work for Windows, Mac, iOS, or Android? Having the right tech allows you to better utilize charts, graphs, and indicators.
Do You Have a Demo Account?
You need to know if you can practice trading before making a real account for yourself. You need to have an understanding of how their platform works.
And this is just a small portion of the list of questions you need to ask a broker. To see all of them, be sure to check out this in-depth article I wrote about picking the right broker!
Mindset Advantage: Execute
In the end, trading is about execution. A detached, matter-of-fact execution that takes into account market data. It’s those darn emotions that get in the way.
What if you were able to execute every trade like you were cleaning up after a great meal with friends or family?
Instead of each entry or exit being the heart-pounding, drama filled moment that it is (for many) – remove your emotions and treat it as though it just needs to be done.
Like taking out the trash, you don’t think about it. You don’t shed any tears over the 5 day old ravioli or hamburger buns that you’re throwing away. Why waste another second on that trade?
Good or bad. Simply execute. And free yourself to see the market from a different point of view.
Keep On Trading,
Stay tuned for my next edition of Josh’s Daily Direction.
And if you know someone who’d love to make this a part of their morning routine, send them over to https://joshsdailydirection.