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Once these money management rules are in place your system can be set on autopilot. But, with your money management rules in place, you can ride out the ups and downs of every Futures trading system and succeed where many fail.

Surprisingly, many profitable speculators have success rates needle 30% and 50%. Futures traders are not successful being they predict prices well. They`re winning for their profitable trades far exceed their losses. The truth of the matter is all Futures systems win and lose.

Psychologically, this can make following a system difficult. Futures market professionals blow in success in this environment by controlling risk with money management rules. But, controlling risk goes at cross-purposes with our natural tendencies. Most Futures traders don`t want to manage risk, they want to be right. Despite the proven fact that money management is so important, when Futures traders first come to me, many of my clients focus their time looking for the perfect entry. It`s their search for the Holy Grail. They want a perfect Futures indicator.

Not only is this Futures indicator going to get them in right at the fenland of the trend, but it`s also going to tell them at the exact point at the top of the trend when to get out. Here`s the best part and pertaining to this indicator: apparently, it can guarantee success and it`s never, ever wrong.

Unfortunately, though I don`t like to disappoint my clients, I need to let them know the hard truth. It does not matter whether you are trading in the Futures or any other market, the simple fact is this; there is no perfect indicator. Instead, there are lovingly set money management rules that will place you in control. With this control, you`ll be able to follow the two red rules in your Futures trading – you`ll be able to let your profits run and cut your losses short.

Once these money management rules are in place your system can be set on autopilot. You won`t need to worry…

"Should I be holding this stock?"

OR

"Shouldn`t I be holding that type of stock?"

This uncertainty is what people are confronted with when they don`t have their rules set for the Futures market. The end result is that small losses end up in effect big losses.

To make matters worse, a few of these big losses strung together can have a detrimental effect on your Futures trading capital. Unfortunately, it`s much more difficult to trade to gain back money you have lost then it is to trade with profits that you ere then have in hand. If things go to the for real extreme, you run the risk of wiping out your entire Futures trading float, as many traders do when they first get started. But, with your money management rules in place, you can ride out the ups and downs of every Futures trading system and succeed where many fail.

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