Are there other reasons why managed futures accounts are generally more profitable?
The growing complexity of the markets is one factor but by no means the only factor. As in most areas of investment, trading experience and trading skills are ultimately major determinants of trading success. Profitable futures trading requires the discipline and temperament to respond to market realities if and when they conflict with market expectations. It requires a keen knowledge of when and how to liquidate positions. It requires the development and implementation of carefully considered trading strategies, a trading plan, and a trading system. Effective account diversification demands an insightful understanding of how various markets react with and to one another. Otherwise, attempts to diversify could prove illusory. Even institutional and corporate portfolio managers who may have experience in futures, such as for hedging applications, generally choose to use professional advisors to manage their futures trading investments. For most individual investors, the advantages can b
