As a trader, you will go through many phases of learning and experimentation. embroidery digitizing services Sometimes you will want to be a day or active trader; other times, you will
want to swing trade or position trade. Do not do this experimentation and manipulation in the same one account.
To be successful, you must document what you do. By keeping different types of trading in separate accounts, it becomes easier to monitor. If you want to
trade new markets with which you are not familiar, trade them in a separate account. They are simple to set up. Based on your original paperwork, many
commodities brokerages will give you a simple one-sheet authorization form. Filling out the form takes all of five minutes, but it makes a world of
difference to your trading.
Sweep Accounts/Interest-Bearing Accounts
If you have $10,000 or more in your trading account, you qualify to purchase a T-bill. Check out the current T-bill interest rates to find out if you will
earn anything holding on to one. A T-bill will cost you $35 to $50 to purchase, depending on that particular brokerages administrative fees. Every brokerage
varies, but you will be able to trade anywhere from 70% to 95% of the face value of the T-bill.
Another recommendation is to move your profits into a sweep account.www.doublex.com.hk/products.html As part of your trading discipline, it simply makes sense to learn to trade with the
money you started with. By trading in this fashion, you will be able to determine if the system you are using really works or if it's a fluke. I know many of
you will be saying, "What about compound interest and trading with your profits?" We'll get into the hard numbers in the next article. Just keep in mind that
a sweep account should be set up at the same time as your regular account.
Trading for Retirement
Do it cautiously!
If you can avoid using your 401(k) or individual retirement account (IRA) to trade futures and forex, then definitely do it. The average trader simply
doesn't have the intestinal fortitude to weather fluctuations in his retirement account, particularly when he is the one managing it. I suggest you put the
problem on someone else if at all possible by working with a CTA.
If you have an IRA or 401(k) that is valued at $100,000 plus, you can effectively hire a commodity trading adviser (CTA) with a track record that can help
you. If your IRA is new or you have had a bad experience with a CTA, there is a simple strategy anyone with a decent-sized retirement account can do. It's
called the 10% solution. You take 90% of your capital and put it into bonds or T-bills; the remaining 10% you put in an S&P futures contract, mini or large,
depending on what your account can handle with good risk management.
On a $100,000 account you would have $90,000 in a bond or T-bill earning a modest income. You would put the remaining $10,000 in a buy-and-hold strategy for
the S&P 500 mini contract or a Dow Jones contract.www.sem-link.com/doc/woven-label-an-product-labeling.wps Current YTD for the S&P 500 is 5.26%, and for the Dow Jones is 7.02%. A mini S&P 500 contract or a Dow
Jones mini contract has margins typically less than $5,000.