Learn to Trade Futures – Using Futures Trading Charts to Explode Your Profits!
There are many who want to learn to trade futures, but are turned off by its reputation of being a fast moving marketplace. While this is true the risk can be maintained with sound money management methods along with a system on trading futures properly. It isn’t easy by no means, but by applying the rules, creating a plan when you trade futures and following it helps reduce the risk that is involved with futures trading.
First, is to ensure that you adhere to a strict regime of money management. In other words, know where you are going to get out before you get in. Plan your trade and trade your plan is what is commonly said to newly futures trading students. How you can apply risk management is simply entering orders to tell your commodities broker that you want to exit the trade at a particular price. These are orders are commonly known as “stop-loss” orders.
Learn To Trade Futures Without Letting Emotions Lose You Money
One of the first lessons when you learn to trade futures is know when to exit the market. Don’t be a gambler. If your system requires you to exit, than without thought or hesitation you should exit. This is a good habit to get into as you remove emotions from your trading. When you can remove emotions, you enhance your chances for a better trade. A mistake that many traders make is that they second guess themselves. They realize that maybe the market came back and they would have made money, so if they would have stayed just a little longer they would have made money. Big mistake. Do not do this or you will always trade by emotions instead of your system.
A good method to exit the market if your position is losing money, is to use stop-loss orders. Basically this type of order allows you to predetermine a price in which you will exit this trade if the market moves up to this point. By limiting your losses, you can live to trade another day. This is very important. Now if you happen to make money on a trade, you should use what is called a trailing stop-loss order. Let’s assume that you are profiting from a trade to the tune of $1200 dollars. You can move your initial stop-loss order closer to the current price so that you can lock in those profits. This way, you can profit if the market continues higher and also make a profit if the market retraces.
Use Futures Trading Charts For Exit And Entry Prices 선물옵션
The most important trading tool when you learn to trade futures is the use of futures trading charts. Futures trading charts let you see prices move and allows you to analysis where stop-loss orders, profit targets and market entry points can be set and made. This allows you to create a trading plan before you actually enter the trade.
Another benefit to using commodity charts is to look for specific trading patterns to decipher when an opportunity actually exists. There are many profitable futures trading setups as far as chart formations and when a specific chart actually happens, you will be able to test and see for yourself if that particular pattern works for you.
Here are four futures trading setup formations that you can use to trade:
1. 1-2-3 bottoms – a bottoming formation that presets a market move higher once the formation is complete.
2. 1-2-3 tops – a topping formation that presets a market move lower once the formation is complete.
3. sideways breakout – price consolidation where the market trades within a tight range and then explodes in a specific direction.
3. continuation breakouts – a market that is in a trend, but makes a small pullback before continuing on that current trade.
4. gap setups – price gaps when not filled usually indicate a strong trending market in a particular direction. If you can enter either before or right after a price gap, you could make big profits as the market moves in one direction with a lot of strength.