At first Spread Trading seems to be more complicated compared with outright futures trading because you are simultaneously buying and selling two different contacts in the same market (calendar or intra-market spreads) or different but related markets (inter-market spreads). It seems that holding a long and short position at the same time confuses some traders. As soon as they understand they are trading the “difference” (the spread) between the two contracts, it gets much easier.

Also, you shouldn’t focus much on the two outrights of the spread (so called “legs”) and rather focus on the spread itself, because that is what you are trading. While trading a spread, you do not really care about the legs involved as long as the “difference” moves in the right direction. As soon as a beginning spread trader understands the basics, he will note that spread trading has many advantages.

There are probably many different factors involved in becoming a good trader or spread trader, but I personally think discipline makes all the difference.

When I look at my trading journal, I can see that my trade selection is good. Nothing to complain about there. But from time to time I can see some notes like “I exited the trade because I thought the market will not go higher” or “I did not exit the trade fast enough."

Do you find the same notes in your trading journal? I am sure we all can find them. We have to find out our weakness when we trade, and we have to find a work-around or a way to get rid of it. This is probably the most difficult part of trading.