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The Ideal Managed Futures Investor

investor managed futures alternative investmentAfter reading through some futures trading articles, you may be saying, “this looks exciting, but is managed futures right for me”? Well, the answer could be an exciting “yes” or resounding “no”, it all depends on you.

Despite the claims of some money managers, there’s not one investment that’s good for everyone.  The fact is, investors have different preferences, goals and risk tolerances, so what’s good for one may be bad for another. With managed futures, this concept couldn’t be more true. As you’d expect, not every investor is right for managed futures. Like other alternative investments, the strategy either aligns with your goals or not!

To assist our readers, we’ve outlined the typical characteristics of a managed futures investor, This will help you understand more about managed futures, allowing you to determine if commodities are right for you!

To get started, let’s take a look at some of top qualities you must possess as a futures investor.

Top Qualities of a Managed Futures Investor

1.  High Net Worth: Typically, those who invest in managed futures have a net worth of 1M+.  If you want to get into a managed futures investment, you must  have 100K or more to invest. The general rule is, you never want to invest more than 20-30% of your net worth. The last thing you want to do is invest the majority of your liquidity in managed futures. If you do, it could be quite a bumpy ride.

2.  Moderate to High Risk Tolerance:  Since managed futures investments can be volatile, it takes a risk tolerant investor to succeed.  If you can’t handle seeing your account go up and down, managed futures may not be right for you.  If it moves up and down a little, it’s not a big deal. As long as the account swings are below 10%, there’s really no reason for alarm.

3.  Understands Basic Futures Trading:  To be a sharp managed futures investor, you must grasp the concept of commodity trading. If you pay little attention to your account statements, you’re missing education and increasing risk.  Be smart, follow live prices in the futures market for a few days! If you understand the trader’s strategy, it can protect you from tons of problems in the future.

4.  Must Possess Diligence and Realism:  You’ve probably heard about the returns in other alternative investments, such as forex and private placement, and are expecting the same with managed futures. Well, though you can achieve annual yields of 300%+, the fact is, you should always look for consistency.  Chasing high yields can lead to short term success, but in the long term, steady traders always come out on top.

5. Long Term Investment Goals: If you think you’d like to invest in managed futures, it’s best to have long term investment goals. Though some may invest for a year and withdraw, it’s most effective to let your funds compound.  For example, in just a period of 10 years, a 100K account could turn into over 10M. The key to achieving this is simple, locating a good futures trader.

If you have some of the qualities we’ve listed above, managed futures could be a good investment for you.  On the other hand, if you don’t possess these characteristics, managed futures may not be the right choice for you.

Though managed futures can produce great yields, like most alternative investments, it’s best for those with a higher risk tolerance. In short, if you have the money and interest, go for it! If not, revisit managed futures when you do. The fact is, saving your money for the right time is far better than losing it in the beginning…

InsideTrade LLC StaffPhone:

(949) 444-2111


  • mr finance said:

    good article, where would i start if i wanted to find a good futures trader? i was looking for something like 50% or more per year. Is that possible? Can anyone give me some pointers?

  • Managed Futures Trading, the History | InsideTrade LLC said:

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    [...] summarize, managed futures investments are great, but only for the savvy investor with large investment goals. If you are an investor with [...]

  • MF Specialist said:

    Are you still seeking? I represent one of the top traders in the industry! His lead program netted over 110% last year! His flagship program has returned over 300% since inception (2001), and beat the stock market 75-fold!

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  • Aron G said:

    Anyone a futures investor? Can you share experiences with other members?? B)

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