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Futures Trading
BASIC THINGS 1) Basic Instructions
2) Discount Markets
HOW TO TRADE How To Trade
MARKET MECHANISMS 1) Basic
2) Advanced
MARKET TOOLS 1) Charts
2) Volume Profiles
3) Trading Indicators
THE SYSTEM 1) Trading System
2)Long-Term analysis
3)Short-Term analysis
3) Trading Analysis
MARKET TIMING 1) Candlestick Charts
2) Candles Patterns
3) Chart Patterns
4) Continuation Patt.
EMINI TRADING Emini Trading
E-Mini System
O/R System
Dow Futures
FOREX FX Basics
Forex systems
FX Introduction
COMMODITIES 1) Commodities
Commodity System
Oil Futures
MANAGEMENT (Risk, Mind & News) Risk Management
The Trader's Mindset
Market News
SIMULATOR Trading Simulator
FUTURES BROKERS 1)  What to look for
2) Futures Brokers
TRADING PLATFORMS Platforms Reviews
IMPORTANT Cycles
TimeFrames Analysis
"Super Tech Analysis"
ARTICLES Part 1
CONTACT, RESOURCES, ETC Contact/About Me
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CHARTS and QUOTES Charts and Quotes
 

Futures Trading Strategy. Your Business Strategy

Futures trading strategy is your Business master plan or business strategy, after all, you MUST take trading as a business because that IS what it is.

You should consider the following things when opening and account and starting your business.

  1. Capital: You must be adequately capitalized in order to achieve your goals, if you are going to trade 1 contract start with 10 000 $, you MUST also do all that is possible to preserve that capital (Use money management rules to control risk).
  2. Trade Location: Just as in any business where Location is extremely important , in trading it is the same, Location here means to do your homework and determine the levels of A supply and demand.
  3. Timing: In a real business where you buy and sell things you have to negotiate with Clients, Distributors, Management, Employees, etc. In trading WAITING for your levels of supply and demand found in the futures trading system ARE your negotiating and skills. Patience PAYS.
  4. Information: In a business you gather information from competitors and clients, you usually do a Strength, Weaknesses, Opportunities, Threats analysis (also called SWOT).

    When you are in futures trading you have got to know yourself and your strengths and opportunities (risk tolerance, length of time you have to watch the market, your system, your levels to do business, your max. daily loss, which type of market you prefer either Index or forex for example, etc).

    You have also got to know your threats and weakness (know your competitors, which in trading means, looking for evolving patters in a level to do business, for example if we are in a demand level, fear to buy is at is greatest. Know your weakness such as trading too many hours a day or holding positions for long period of times, impatience, etc).

  5. A futures trading Strategy will also involved complete Action Plan in terms of 3 things:
  6. A futures trading system. The system is your part 1 of the Action Plan, you must follow it, just like you follow a plan when you go on vacation or when you want to achieve something, so plan your trades and trade your plan, Yep !! the old trading cliché, found everywhere.
  7. Money management. Your futures trading strategy must also include the amount of money you are willing to lose applying your system. This includes. 1) the Stop loss per trade (your insurance) 2) your stop loss for the day. This too, I have found are the most important, since every trading day is different. Some people like to use weekly stop loss, that can also contribute but I have found that since every day is different setting a weekly stop loss is difficult. Click on the link for more info in money management, click here to explore more on this.
  8. Mindset. Your willingness to put up with the work that trading entails, your ability to see the positive things in life, and your ability to “shrug off” losses. This is very important and one of the fundamental aspects of trading. Trading psychology is called. I can extent and make an entire website on that, but that is not the main topic of the web, nonetheless click on this link to review the important aspects of Psychology.
  9. A futures trading strategy takes long to develop, but my friend take the time as you study the market to write it down, at the end you make yourself a HUGE favor.


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  • Reader's Testimonials

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