Waddling Through Day Trading And Futures

by

FCFutures

Before we proceed, let us first clarify that day trading means the regular session during the day where most investment trades are conducted. Day trading usually ends at four PM, after which it is called the after-hours trading. Now, on to the discussion on futures.

The common denominator why people choose to invest in futures is the lure of money. However, day-trading futures is not a fool-proof business. There are risks involved and it would be wise to first find out what you\’re ready to face before you get into it. Statistics show that more and more people are becoming interested in investing into futures trading accounts because of the strong likelihood of collecting robust gains. One of the common mistakes in day futures trading is overshooting. When you make a financial plan, stick to it until the end and don\’t keep changing along the way. This will only cause confusion and result in you losing a lot more money in the end. Here are some tips traders should keep in mind every time they engage in day futures trading. The market is highly unpredictable and volatile. Just because you\’re trading futures and have some form of control over the outcome of your transaction, you can never be fully sure that you\’ll be banking a win. A lot of experts will give out forecasts about where the futures market is going, but none are extremely accurate. Trading is basically a gamble, so it\’s best not to put all your eggs in one basket. To be successful in day futures trading, you must first determine what your key goal is. Are you trading to generate profits, or are you doing it because it\’s exciting? Also, you must have a realistic aim, one that you can truly work with based on the resources you have. You must determine how much you\’re prepared to risk All traders seek to prevent huge losses on their futures accounts and not even the most seasoned of traders are spared when the tides turn against them. However, what separates professionals from the novices is that the former have greater emotional control when the heat turns up. It is inevitable that markets fall, because that\’s their nature. If you think you can\’t handle too much risk, then don\’t invest too grandly. Put out only what you can comfortably work with. What futures trading can guarantee is that at some point you win a lot and at some point you will lose. Thus, traders are expected to exercise an ample degree of patience and prudence when they make their financial decisions. That is, hope for the best and expect the worst. If you\’re not prepared to face a major downfall, then maybe futures trading is not for you. Remember, the market is unpredictable and no matter how much of an expert you say you are at it, there is no 100% fool-proof strategy to ensuring a win.

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FCFutures Past performance is not indicative of future results. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

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ArticleRich.com

By Nicholas Jarder

Amazing Forex System is an eBook about a forex trading strategy developed by Robert Borowski. To an experienced trader, there is really nothing amazing with the eBook nor the trading strategy contained therein. However, the trading strategy never-the-less is a proven technique and employs well-founded and logical reasoning.

The Amazing Forex System employs a popular trading strategy called ‘trading the news’ which I have often used myself in the past with a great deal of success. Basically, the strategy calls for placing two orders (a buy and a sell order) simultaneously just minutes before a highly anticipated, market moving news hit the wires. The news comes in the form of agency reports which by law are mandated to be released publicly and on a calendared basis. The news normally contains economic data and/or policy pronouncements that may greatly impact the currency market. Economic news reports of great significance often throw the market into a frenzied state. Interest rates, unemployment and export rates, or the central bank’s policy shifts, can drive the market crazy.

Since the release of such highly anticipated news is often followed by substantial price movements, there is nothing more for the trader to know except to pin down the exact date and the exact time the news is to be released to the media. Where ever the market goes, up or down, or however the major players react to the news will be of no consequence. With this strategy, the trader is sure to catch the trend and trade the opportunity for profit.

The Amazing Forex System may be too simplistic and rather straightforward to many sophisticated traders but it works! In fact I have seen an automated trading system that has incorporated a robot built with the same principles. Besides, as I have said earlier, I have used a similar trading strategy in the past with great success.

There is no perfect trading system. They all have flaws. Similarly, the Amazing Forex System has its own flaws. Here are some of them.

The market becomes highly volatile during important news events. During such times, the dealers widen their spread. This will definitely impact your bottom line.

Big market moves especially those triggered by news events are often accompanied by equally big whipsaw movements. Prices may soar in one direction for a while only to be whipsawed back to the other direction. This can turn your profit into losses if you are not fast enough to get out of the market while you are still ahead! Or, if you have not cancelled out your other entry order, it could be triggered by the whipsaw move leaving you locked up with losses. To avoid such situations, you need to place OCO (one cancels the other) orders.

The stop loss order in this strategy is set at 10 pips. In a very volatile market this is considered too tight! For all you know, the market may momentarily move against your position, trigger your stop, then return again to resume its move. In short, with the tight stops it employs, you can be unnecessarily taken out of the market despite trading in the right direction.

But even with these misgivings, I still think the Amazing Forex System is a workable trading system which can be a profitable after a few adjustments. With some more fine-tuning and a lot of actual hands-on testing of the Amazing Forex System may yet prove its value with consistent profitable trades!

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