Trading Futures With Common Sense
Trading futures is not a science and how could it be.
It is a misnomer, a mismatch of trading ideologies and methodologies that can or cannot be used to explain how the market works.
Trading futures is a lot about common sense and this article will talk a little more on the computing aspect of the trading market, which is perhaps one of the more important things you need to educate yourself about.
Much of what I know of trading futures is based on experience and looking at how the market has been behaving for a long time now.
One thing you need to understand is that traders who have been doing this for a long time are often faced with the difficult task that they must design their own systems at the end of the day for them to make sense of the market.
The trend in the market is towards more conservative traders, and this is because this is normally the way trading in the futures is done.
Risky and more aggressive trading often has very little place in the market at all.
The first thing you need to do is to be able to identify the markets that can be traded in and this can be something that is quite difficult to master.
Some might just give you a blanket term of liquidity when talking about the market of choice for future traders, but just how do you spot a liquid market.
Well, liquid markets are one with the most volume and open interest, and we would suggest looking at some minimum requirements before you enter the market.
Some might suggest that you need to see something like 5,000 contracts being done on a daily basis before you consider entering the market.
This is a good way to set standards on the markets that you approach, because a high volume means that prices are fluctuating enough for you to enter the market and do speculation of your own.
Also, look at the historical volatility of the market, and this is one of the more important things as well.
Markets with a high range wide swinging trends seem to be preferred over the narrower and quieter markets, so what you need to do is know where the substantial profits are most available.
Also, the general advice from all the traders that have been at the futures market for some time now is that you need to avoid trading in new markets that seem to have a gravity of its own.
These markets seem to be the one that are unable to perform that well in the basis that they excite traders into making homogeneous deals.
So these are some of the aspects you might want to look out for when you are trading futures, and if you have new problems or any questions you can research more of my advanced techniques or drop me a line.
Cheers and good luck with your trading and hope you make something out of it.
It is a misnomer, a mismatch of trading ideologies and methodologies that can or cannot be used to explain how the market works.
Trading futures is a lot about common sense and this article will talk a little more on the computing aspect of the trading market, which is perhaps one of the more important things you need to educate yourself about.
Much of what I know of trading futures is based on experience and looking at how the market has been behaving for a long time now.
One thing you need to understand is that traders who have been doing this for a long time are often faced with the difficult task that they must design their own systems at the end of the day for them to make sense of the market.
The trend in the market is towards more conservative traders, and this is because this is normally the way trading in the futures is done.
Risky and more aggressive trading often has very little place in the market at all.
The first thing you need to do is to be able to identify the markets that can be traded in and this can be something that is quite difficult to master.
Some might just give you a blanket term of liquidity when talking about the market of choice for future traders, but just how do you spot a liquid market.
Well, liquid markets are one with the most volume and open interest, and we would suggest looking at some minimum requirements before you enter the market.
Some might suggest that you need to see something like 5,000 contracts being done on a daily basis before you consider entering the market.
This is a good way to set standards on the markets that you approach, because a high volume means that prices are fluctuating enough for you to enter the market and do speculation of your own.
Also, look at the historical volatility of the market, and this is one of the more important things as well.
Markets with a high range wide swinging trends seem to be preferred over the narrower and quieter markets, so what you need to do is know where the substantial profits are most available.
Also, the general advice from all the traders that have been at the futures market for some time now is that you need to avoid trading in new markets that seem to have a gravity of its own.
These markets seem to be the one that are unable to perform that well in the basis that they excite traders into making homogeneous deals.
So these are some of the aspects you might want to look out for when you are trading futures, and if you have new problems or any questions you can research more of my advanced techniques or drop me a line.
Cheers and good luck with your trading and hope you make something out of it.
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