Day Trading Commodity Futures

Carley Garner

The concept of day trading has drawn new speculators into the highly leveraged commodity markets by the droves. However, while there are obvious advantages to the strategy there are also opportunity costs. The purpose of this essay is to prepare traders for the realities involved in day trading and to steer them clear of the common pitfalls.

By definition, day trading is the practice of entering and exiting a position within the confines of a single trading session. Although this seems to offer a relatively narrow number of approaches, there is no limit in the variety of day trading strategies. For instance, some day traders scalp the market for a tick or two in attempted profit while others are trading ...