Day Trading Futures: Risks & Benefits

New to futures trading, or considering trying out day trading as a new strategy? If so, you probably already know that there are both risks and benefits to day trading futures, which we will share more about with you in this article.

Understanding Day Trading

As implied by its name, day traders do not hold onto trades overnight. This can be one pull factor if you wish to get a good night’s sleep, without constantly getting up to check on your trades. Although all positions must be closed by the end of the day, day trades can still vary in duration. A trade can be as short as a few minutes and last up to hours. Day traders require lots of discipline, knowledge, and experience in order to trade successfully – the good news is that this is something you will slowly start to gain as you keep trading. 

Benefits of Day Trading Futures

More often than not, futures open at a significantly different price than what they closed at the day before. This volatility means that the possibility of high profits and losses are equally on the cards. Because day traders can make up to a few trades every day, as opposed to just one a week, you will find that very soon, you will start to gain the knowledge and experience you require to make well-informed trading decisions.

Risks of Day Trading Futures

As with any other trading strategy, day trading futures comes with its own set of risks. It requires enormous discipline to become a successful day trader and resist the temptation to overtrade. Another risk of day trading you have to take note of is the large commissions that can be incurred. At the end of the day, you should aim for a 25 to 50% profit margin in order to break even. As a result, many day traders find that they are unable to turn a profit.

Day Trading – Yes or No?

Although there are risks to day trading futures, it can be a rewarding game as long as you have the discipline and determination to see it through. Be willing to develop a plan and stick to it – over time, you will find your efforts starting to pay off.

Come to Bold Analysis, LLC for 24/7 Support

Require support and resources to start day trading futures? Come to Bold Analysis, LLC, today. Our range of services includes beginner traders support, alert room notifications, 1 on 1 coaching, digital mentorships, and more. Signing up for our services is quick and easy – all you need to do is contact us if you have any queries and an experienced consultant will be in touch as soon as possible. All members can also benefit from 24/7 admin support as well as access to a chat forum where you can share insights with other traders. Our aim is to build a strong and independent community of traders, and we welcome you to be a part of that!