How can I practice futures trading in a realistic environment?

Anyone who has risked his hard-earned money in the markets knows that trading is a game of mental stability, not necessarily intelligence, or even skill. Most traders enjoy massive success in a paper trading account but fail to convert their experience into profitable live trading.

Accordingly, paper trading for long periods of time (months or years) isn’t as helpful as many assume it to be.

In my opinion, traders are better served opening a small account to trade ultra-low margined futures such as mini grain futures, e-micro metals, or e-micro currencies. Doing so gives traders all the benefits of paper trading with at least some indication about how emotions play a part in decision making. Naturally, it isn’t nearly as stressful to trade a product that makes or loses $1.25 per tick as it is one that is worth $12.50, but doing so will give you a taste of what’s in store — an emotional roller-coaster.

Read more about paper trading the commodity markets...

Futures and Options Trading Booksby Carley Garner

What People are Saying about Our Commodity Trading Books

Choosing a Futures Broker and Brokerage Service

Full-Service or Online Trading?

The decision to trade online or through a full-service commodity broker will undoubtedly make a large impact on your bottom line.

Learn More

A Fair Commission Rate vs. Low Commission

To look at commission rates objectively, we must understand the background of the futures industry and how brokerages accept risk for fees.

Learn More

Choosing a Commodity Brokerage Firm

Deciding on a commodity brokerage firm is a significant decision and shouldn’t be taken lightly. Not all traders and brokers are compatible.

Learn More

Choosing a Futures and Options Broker

Most traders in search of a futures broker are concerned primarily with trading platforms, commission, and quality guidance.

Learn More

The Truth about Futures Commission

The goal of futures trading should be to MAKE money, not SAVE it! Discount commodity brokers cut corners that cost their clients time & money.

Learn More

Commodities via Futures or ETFs?

A key difference to trading commodity futures over ETFs is leverage, but there is more to discuss, such as taxes, market hours, and efficiency.

Learn More