Futures Trading Tips

Different Types of Trading Days 6.02.2015

June 1st, 2015 Filed under Commodity Trading, Day Trading, Future Trading News, Futures Trading, Trading Guide | Comment (0)

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5. Futures Economic Reports for Tuesday June 2, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Voted #1 futures trading blog!

Hello Traders,

The first trading day of June 2015 was a wild ride in many markets….almost as if the markets were quite confused on the direction for the month and traded very choppy with “unexplained, fast moves” both ways. I saw this in stock index futures, metals, currencies and even the grain sector…

As traders we need to learn how to adapt quickly, sense what type of trading day is developing in front of us and trade accordingly.

I wrote the following a while back and shared it before but worth sharing again as refresher:

In my opinion there are 3 main types of trading days.

1. The most common day are two sided trading action with swings up and down – this type of trading day is most suitable for using support and resistance levels along with overbought/oversold indicators.

2. Strong trending days, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using ADX, MACD crossovers and pretty much looking for pullbacks to jump on the trend.

3. Slow and/or choppy trading days – this type of trading day is best suited for taking small profits from the market by looking at volume spikes, using stochastics as possible entry signals and usually wait for a pullback before jumping in.

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Futures Trading Advice for Beginners Infographics

April 28th, 2014 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Future Trading Platform, Futures Broker, Futures Trading, Options Trading, Trading Guide | Comment (0)

Do you often find yourself overwhelmed by the game of numbers that dictates the nerves of the markets? Are you often perplexed by the amusing gains and losses that investors count their wealth by? Here is an interesting way to understand commodities and trading, for all those who are inquisitive about the art of investment. In case you think commodities can be your ticket to extra earnings, the infographic presents some hard facts that you ought to rote before you fall in the temptation of trading. That said, once you have the basics by your side and the facts by your fingers, trading in commodities can be another asset class to consider.

The infographic that Cannon presents, is a graphic insight into how investing in commodities through futures should be done. It also establishes certain general tips one can follow when trading futures. The infographic uses basic examples from day to day life to explain difficult concepts of trading, a matter that generally requires expert intervention or hours of discussion so as to understand thoroughly. The basic features of futures trading have also be highlighted in the simplest possible manner, through this infographic made by Cannon Trading.

Futures Trading Infographics
This Infographic created by:: Cannon Trading

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Futures Trading Article by Jim Wyckoff & Levels 4.09.2014

April 8th, 2014 Filed under Future Trading News, Futures Trading | Comment (0)

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Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Voted #1 futures trading blog!

Knowing What You Don’t Know in Trading Marketsby Jim Wyckoff www.jimwyckoff.com

The headline of this educational feature may be a bit confusing, but I will explain what I mean shortly. First, I want to reiterate that trading futures, stock and FOREX markets is not an easy undertaking. It disgusts me that there are a few unsavory people in our industry that portray trading as an easy, get-rich-quick scheme, or as some endeavor for which there are “secrets” to be learned from those who hold “trading secrets.”Folks, the plain truth is that there are no trading secrets and no easy paths to quick success in trading markets. Beware of anyone who tries to tell (or sell) you such.One of the biggest obstacles to success in trading markets is a lack of knowledge and understanding of the process of trading. The “process of trading” includes understanding financial leverage, market behavior and trader psychology. Understanding the process of trading can be achieved with perseverance and a willingness to continue to learn.It’s not coincidental that trading markets is similar to most other human endeavors: Hard work and experience are required to achieve notable success. A person who enjoys classic automobiles would not attempt to tear down and successfully rebuild an engine without having some previous experience, or without having learned about the workings of an automobile engine-including knowing about the tools involved in the operation.I have written numerous times that learning about different trading tools, different markets and different trading strategies provides a solid foundation on the road to trading success.Ironically, I believe a major advantage of being an experienced trader is knowing what you don’t know about markets and trading. Yes, you heard that right: Knowing what you don’t know.

What do I mean by this? I mean that there are certain elements of futures trading about which I do not “know,” and never will.

I don’t “know” what markets are going to do in the future. Some may ask, “How can you be in this business and not know what markets are going to do? How can you be a successful trader and not know where market prices are going?” My answer is that market analysis and trading (at least the way I see it) is not a business of bold predictions, but one of exploring market probabilities based upon market knowledge, price history, human behavior and trading experience. The fact that I “know that I don’t know” exactly what a market will do gives me a trading edge. Why? Because I will exercise more caution and think about and plan for what could happen if a trade turns against me. I know that some trades will indeed turn against me and that I need to have the capital to trade another day, so I won’t “put all my eggs in one basket.”

I prudently place protective buy and sell stops on trades because I do not “know” what the markets will do. I would rather absorb a small trading loss and be termed “wrong” about that trade, as opposed to risking trading with no protective stops and seeing a small loser turn into a big loser–all in the “hope” the market will turn around so I can be proven “right.”

(Do you see what I mean when I discuss human behavior? Most of us don’t like to be “wrong,” and will make decisions so that we are not wrong. In trading, sometimes the decisions traders make to avoid being “wrong” are not prudent decisions for those wanting to be successful traders in the long run.)

One sure fire clue I get that a trader does not have much trading and market experience (and needs more!) is when the trader tells me he or she “knows” a market is going to do something. What can be even worse is when a trader thinks he or she “knows” what the market is going to do, and then makes a trade that turns out to be a winner. That type of psychological reinforcement of a flawed trading characteristic only sets up the trader for a bigger disappointment at some point in the future-likely sooner rather than later.

Traders absolutely must respect the markets. Only the markets are 100% right. Traders who think they “know” exactly what a market will do are not showing the markets respect.

That’s it for now. Next time, we’ll examine another important issue on your road to trading success.

Jim Wyckoff is the proprietor of the analytical, educational and trading advisory service, “Jim Wyckoff on the Markets.” He has a website at www.jimwyckoff.com and his email address is jim@jimwyckoff.com

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How Do I Get Started Trading Futures?

June 22nd, 2013 Filed under Commodity Brokers, Commodity Trading, Future Trading Platform, Futures Broker, Futures Trading, Trading Guide | Comments Off on How Do I Get Started Trading Futures?

So you’ve come this far. You’ve evaluated different vehicles of investment, and you have decided to expand your portfolio to include commodity futures. Now what? You are going to need a few tools at your disposal: a knowledgeable commodity broker that is quick on their feet, a reliable, efficient platform that will get you the information you require and executes your trades on a timely basis, and perhaps most importantly a plan.

Let’s begin with the most important requirement: because futures are so highly, there’s no doubt it can be a very risky asset class and you should only be trading with “risk capital”, or money that you can stand to lose and won’t affect your lifestyle if you do. Once you’ve accumulated your risk capital and you’ve come to terms with the nature of trading futures, you can take matters a step further by doing research on what kind of trader you want to be.

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Entering into Futures Trading

June 19th, 2013 Filed under Commodity Brokers, Commodity Trading, Futures Broker, Futures Trading, Trading Guide | Comments Off on Entering into Futures Trading

Futures trading can be a rewarding investment for those with an in-depth understanding of a particular commodity. In essence, you will be buying or selling a commodity based on its future selling price. For example, if you can buy a futures contract at a low rate and sell it for a higher price, it’s possible to gain a significant profit in the transaction. But before wading into this highly speculative market, there are some things you will need to do and know about trading futures markets.

First, you will need to enter an agreement and create an account with a commodities broker. These brokers are licensed professionals who are allowed to trade in commodities on the trading floor of an exchange. Accordingly, they manage and mediate futures trading between buyers and sellers as well as keep track of the prices of futures contracts. Because of their knowledge of the market, they can help you make sound investments and recommend an investment strategy that suits your profile.

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