Top 50 Reasons Why Futures Traders Lose Money
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Started by metmike - Aug. 31, 2026, 1:42 a.m.


https://www.zaner.com/3.0/education/ondemand/50rwftlm.html

A list of the fifty most common reasons why most futures traders   lose money.  

We surveyed more than a thousand experienced futures brokers and asked what,   in their experience, caused most futures traders to lose money. These account   executives represent the trading experience of more than 20,000 futures traders.   In addition, most of these Account Executives (AEs) have also traded or are   currently trading for themselves. Their answers are not summarized because   different traders make (and lose) money for different reasons. Perhaps you may   recognize some of your strengths and weaknesses. Yet, many of the reasons given   are very similar from broker to broker and client to client. The repetitions   stand to demonstrate that, alas, many futures traders lose money for many of the   same reasons. Perhaps these statements from experienced brokers can make a   contribution to you, who make this sometimes fickle, often intricate, always   interesting marketplace of futures trading possible. Here is what they said:

Lack of discipline is a major shortcoming.  

Many traders overtrade their accounts.    

Futures traders tend to do inadequate research.    


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By metmike - Aug. 31, 2026, 1:51 a.m.
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AI Overview

 Buying options in commodity futures is often considered a losing game because time decay works directly against the buyer while statistical probabilities favor the seller. [1, 2]Why Buying Options Fails
  • Time Decay (Theta): Options have a limited lifespan. Every day that passes erodes the option's time value, meaning the underlying commodity price must move significantly and quickly just to overcome this internal depreciation. [1, 2, 3]
  • Sideways Markets Lose: If the commodity price moves sideways or consolidates, a buyer still loses money even if they guessed the eventual direction correctly, because expiration crept closer. [1, 2]
  • The Math is Against You: A large majority of out-of-the-money options expire completely worthless. Industry statistics and brokerage data suggest that option buyers turn a profit only about 30% to 35% of the time. [1, 2]
  • Volatility and Pricing Distortion: Option prices are governed by complex mathematical formulas (the "Greeks"). An increase in the underlying asset's price does not guarantee an increase in the option's value if implied volatility drops or market volume is low

By metmike - Aug. 31, 2026, 1:52 a.m.
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Customer Advisory: Understand Risks and Markets before Reacting to Internet Hype

           

The Commodity Futures Trading Commission advises the public to thoroughly research and fully understand how commodity futures markets, physical markets, and securities markets differ—as well as the risks associated with speculative trading—before acting on tips or other information communicated via social media.

https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/CustomerAdvisory_SocialMedia_Metals.html

By metmike - Aug. 31, 2026, 1:57 a.m.
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Volatility is no longer the exception.

              https://www.jpmorgan.com/markets/insights/volatility-is-no-longer-the-exception                                                                                                                             

Geopolitical shocks, commodity swings, retail flows, and rapid reversals are changing how markets move. Explore how institutional traders are managing volatility as an ongoing condition—using data, technology, and judgment to respond faster and think further ahead.

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The Certainty of Uncertainty: How institutional traders have adapted to the new normal of increased market volatility

                               

August 28, 2026

Key takeaways

                     

  • Volatility, now considered a defining feature of today’s markets, is forcing investors to rethink how they manage risk, build resilience, and target opportunities.                                                           
  • Geopolitical fragmentation, commodity disruption, and retail participation are making market moves faster, sharper, and harder to read.                                                          
  • Technology is helping traders process information and respond more efficiently to changing market conditions, while advances in execution tools, data, and analytics are reshaping how risk is monitored and managed.                                                  
By metmike - Aug. 31, 2026, 1:58 a.m.
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Fourteen large commodity trading disasters: What happened and what can we learn?

https://www.sciencedirect.com/science/article/abs/pii/S2405851321000544

By metmike - Sept. 2, 2026, 5:57 p.m.
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                Re: Re: Spy Options            

                         By metmike - Sept. 2, 2026, 5:43 p.m.            

This below is for everybody, especially me because metmike is the only person that I can control!!!

Trading Without Ego

     https://www.elitetrader.com/et/threads/trading-without-ego.291191/

Because trading is an uncertain game of probabilities filled with uncertain vagaries, an overly inflated ego or a fragile ego can easily get smashed. Defending the ego uses up unnecessary energy, distorts perception, and sooner or later, will destroy the trading

Another way to get some distance between yourself and your trading is to look at it from different perspectives. This is also true in your relationships with other people. In most interactions with another person there are three different and separate perceptual positions.

The self position is looking through your own eyes, hearing what you hear, feeling your own feelings, holding your own beliefs, and making your own interpretations. Most of us live our lives in this position. This is the position that gives you passion. It's where the juice is. From this position we have access to some information, but not all of it.

The observer position is that of a neutral observer, a fair witness. This is a dissociated position. Here you watch yourself and the other person. Here you are in the role of a spectator as you listen to yourself and the other person. As an observer you'll have a third party's commentary. This gives you an impartial view, but if you stay here too long, you could end up playing the role of the cold fish.

The other position gives you the other person's point of view. Here you look at things through the eyes of the other, hold the other's feelings, walk and stand in the other's shoes. This position gives you the ability to identify with and through another person. Here you see the world through another person's eyes and get a sense of what they're feeling. If you live too much in this position, you could be in danger of living in the doormat position.

By going to the observer position, you can gain perspective and neutrality. Some successful traders move to the observer position when they put on a trade. If you're getting too involved in a trade, move to the observer position and look at it from that perspective. At the end of a given trade or at the end of a trading day, take a look at your trading from the fair witness position.

You can also look at your trading through the eyes of another person, for example, a trading buddy, a trading coach, or a trader you admire. What would this person say? What would they think? What, if any, advice would they give you?

--Ruth Barrons Roosevelt, J.D.

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metmike: Turns out that applying this to other realms in our lives makes us better human beings who respect and understand others that are different than us (especially in politics)!              

1 way that I have always tried to accomplish this is to ask this question constantly: "If I wasn't long/short XX contracts right now, would I put the position on right here and right now?" If the answer is yes, then it's good. If not, then it's time to adjust......trailing stop or just cover if the market has already done the expected knee jerk reaction to the change in the weather forecast which was the main reason to put the trade on.

Has the weather changed to more/less favorable since putting the trade on or stayed the same?

 But that's just me as a weather trader.