Skip to Main Content
The Complete Guide to Futures Trading: What You Need to Know about the Risks and Rewards
book

The Complete Guide to Futures Trading: What You Need to Know about the Risks and Rewards

by Lind-Waldock
June 2006
Beginner content levelBeginner
312 pages
7h 38m
English
Wiley
Content preview from The Complete Guide to Futures Trading: What You Need to Know about the Risks and Rewards

CHAPTER 3

Trading with a Broker as a Partner

Are you ready to jump in and start trading? Buy-and-hold, the foundation of stock trading for generations, may not work as well in today's marketplace. Stocks have proven to be vulnerable to tremendous price swings—both up and down. In this environment futures and options on futures can be attractive alternatives for those investors who are seeking speculative opportunities in both bullish and bearish market scenarios as well as for those who are simply trying to protect current exposure via a hedge.

However, you still have a few decisions to make, starting with an honest assessment of your ability and confidence to trade and the amount of help you need to pursue your trading program.

WHAT A BROKER CAN OFFER

Depending on your trading knowledge and experience, one of the most important decisions you might make is what type of brokerage relationship to have. Brokerage firms offer a variety of arrangements, from self-directed where traders make all the decisions independently to professionally managed accounts where traders have no involvement in the trading decision other than providing the money and selecting the money manager.

Many traders prefer a broker-assisted program, which is a hybrid of self-directed and managed accounts offering key aspects of both service levels. Broker-assisted programs can benefit a wide spectrum of traders, whether they are novices seeking guidance at almost every level or seasoned veterans looking for an ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

The Trend Following Bible: How Professional Traders Compound Wealth and Manage Risk

The Trend Following Bible: How Professional Traders Compound Wealth and Manage Risk

Andrew Abraham, David Druz

Publisher Resources

ISBN: 9780470055595Purchase book