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Thursday, May 10, 2012

Best Futures Trading Tips

Every futures trader's goal is to achieve the best futures trading possible. This is because futures trading is very fast paced, with high risk and stake involved. Most of them use a futures broker and the trading platform provided by the brokerage to execute trades. A good brokerage offers invaluable research reports and free educational products.
What Is Futures Trading

This type trading involves the exchange of an asset in accordance to a standardized contract at an agreed price today but with a delivery date sometime in the future. The price of the asset may change between the contract date and the delivery date. With the contract price already been agreed upon, the change will result in a profit or a loss when it is settled on or before the expiration date.
Always Close Futures Contracts Before Expiration

Delivery of the asset almost never occurs as futures contracts are always closed out before the delivery date. Futures trading involves forecasting the future direction of prices of the underlying assets.

The buyer is hoping the price goes up and the seller is hoping the price goes down. Traders attempt to figure out the direction of future price movements by studying the markets using technical analysis and fundamental analysis.
Choose The Best Futures Broker That Is Suitable For Your Needs

A trader should conduct a detailed research on brokers, and trading platforms before deciding on a broker. What worked for one trader may not be the best for another. Every broker is different; some may offer full services and charge a higher commission. Discount brokers charge lower commissions and offer lesser services. The trader must understand what is needed in a broker.
Determine Your Style Of Trading

The trader needs to find his or her style of trading, for example, are trades based more on technical analysis or fundamental analysis. A broker that specializes in the same type of trading style can offer relevant market information.

If trades tend to be closed out quickly, within the same day or even hour, the trading platform must suit this type of trading.

Futures trading is always evolving with the changing market conditions. A supportive broker that provides the educational and research resources is like your research partner in your trading career.

At the end of the day, futures trading is a thinking man's game. Besides all these tips, each trader must decide how to achieve their best futures trading themselves for achieving the greatest profits possible.

8 comments:

  1. These tips are so effective. Futures Trading would be more easier with your new tips.

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  3. I am going to share with you one very simple strategy based on a strong and easily noticeable candlestick pattern. They call it "Lucky Spike". Everyone can learn it, use it and make money with it. There are traders who make a living trading just this pattern. Just check out this ebook I am giving you for free:==> http://www.forexmystery.com?hgd4h84gdh

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  4. I am going to share with you one very simple strategy based on a strong and easily noticeable candlestick pattern. They call it "Lucky Spike". Everyone can learn it, use it and make money with it. There are traders who make a living trading just this pattern. Just check out this ebook I am giving you for free:==> http://www.forexmystery.com?hgd4h84gdh

    ReplyDelete
  5. I am going to share with you one very simple strategy based on a strong and easily noticeable candlestick pattern. They call it "Lucky Spike". Everyone can learn it, use it and make money with it. There are traders who make a living trading just this pattern. Just check out this ebook I am giving you for free:==> http://www.forexmystery.com?hgd4h84gdh

    ReplyDelete
  6. Let me explain the basic principle how most Forex systems work. They are tuned up to work in a specific market condition. They often make money in a trending market, but loose money in a choppy market. It is not a problem as long as the market is trending and the system is making more money than it loses. Such a system can be profitable for several months and you would be happy with it. BUT...

    PREPARE FOR THE WORST...

    Market change over time. A well designed system starts with trend analysis to stay away from potentially losing trades. There are two problems of how a Forex system recognizes the trend.

    PROBLEM: FALSE "STRONG TREND" INDICATION.

    The system responds only to immediate price action. An explosive price movement that is usually the result of news release is tempting people to jump in and make a profit. It looks like a "strong trend", but what usually happens next is a hard fall.

    To avoid falling into this trap, check for the SOLUTION to find a REAL trend:

    ==> http://www.forextrendy.com?nsjjd92834

    SECOND PROBLEM: TREND RELIABILITY

    Most systems use various indicators to determine the trend. Actually, there is nothing bad about using indicators. One Simply Moving Average can do the job. The problem comes with the question: "Is the market trending NOW?" Whether the market is trending or not trending is not like black and white. The correct question is: "How well the market is trending?"

    And here we have something called TREND RELIABILITY.

    Trends exist and they can be traded up and down for a profit. You have to focus only on the most reliable market trends. "Forex Trendy" is a software solution to find the BEST trending currency pairs, time frames and compute the trend reliability for each Forex chart:

    ==> http://www.forextrendy.com?nsjjd92834

    ReplyDelete
  7. "Which Forex pair and time frame is best to trade" is the frequently asked question and I want do give you the DEFINITE ANSWER.

    Are you expecting that I am going to say something like EUR/USD on 5-minute time frame or GBP/USD on daily...? No, it is not so simple, but SIMPLE ENOUGH we can figure it out!

    The "PROBLEM" is that markets change over time. If GBP/USD was a well trending currency pair a few years ago, today it is another one.

    I actually want to let you know about a SPECIAL TOOL that I use to find the BEST TRENDING PAIRS among all the Forex pairs.

    ==> http://www.forextrendy.com?hfsdtb63546

    The software scans 34 Forex pairs on all time frames from minute to monthly. This way you pick the best trending pair and time frame at the current time.

    The system is running on our powerful computers, so you have nothing to download and install. Just join in and start using it within a FEW MINUTES! Get it on the link below:

    ==> http://www.forextrendy.com?hfsdtb63546

    ReplyDelete