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.
- 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).
- 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.
- 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.
- 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).
- A futures trading Strategy will also involved complete Action Plan in terms of 3 things:
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.
Click here to go back from futures trading strategy to futures trading system
Click here to go back from futures trading strategy to emini trading
Essential Tools For Traders
Praveen from Miami, Florida.
First I must congratulate you on a very successful and useful site. It is practical and really helps to trade with confidence. Excellent work. Trust me when I say this...
I have gone through thousands of sites before I came across your work and indeed it is commendable. I have one question for you. After drawing support and resistance lines on the 30 and 5 minute chart, do you then focus on a 2 minute chart and take your trades based on candlestick patterns?
Robby from Indonesia.
WOW, very very good materials. I've been studying market profile and supply and demand for about 2 years now. So far, I found the materials in your website to be very generous.
Jose, Las Palmas, Gran Canaria, España.
Hello, i only want to say you thank you for all this free information, for me that I'm a begginer all this information is pure gold.
Thank you very much.