How to Invest
Investing in Managed Futures
Before you invest, it's most important to define your goals and objectives. Assess your current portfolio's asset allocation and determine what your overall objective is and what role managed futures instruments would play.
The first step in investing is finding a qualified Introducing Broker (IB). A qualified IB is a registered broker with the National Futures Association (NFA). Much like a stockbroker when buying stocks and mutual funds, IB's are brokers who assist you in buying managed futures.
When choosing an IB, the most important qualification to look for are:
- - Company history, experience and specialty
- - NFA Status
- - Your account representatives Industry knowledge and experience
- - Understanding of Modern Portfolio Theory (MPT)
- - Looking out for your best interest. This is the most import trait.
Managed futures are powerful instruments and can be used in numerous ways to achieve your objective. It's always best to speak with a qualified managed futures specialist.