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http://profitabletradingtips.com/trading-investing/futures-trading-strategyFutures Trading Strategy There are a large number of profitable day trading strategies and strategies for longer time frames for trading futures. Any futures trading strategy can take advantage of fundamental market factors or technical analysis of price trends. Following trends, trading within set ranges, scalping, trading the news, and using a contrarian approach each is a viable futures trading strategy. To a large degree the strategy that a trader adopts will depend upon market conditions and his or her individual skill set. Trends in Futures Markets Markets go up and markets go down. Trend following in day trading or longer time frames assumes that what is going up will continue to go up for the immediate future and that which is doing down will continue to go down for the immediate future. In each case traders use technical analysis in order to assure themselves that the trend will continue for the term of their trade. This method works for both short and long term trends. Traders commonly use tools such as moving averages, channel breakouts, current price, and Japanese candlesticks in order to assure themselves that the trend will continue for a set period of time. Home on the Range Many times a commodity, stock, or currency pair will trade within a range. Range trading in day trading and longer intervals is a commonly futures trading strategy. Traders seek to buy at the bottom of the cycle and sell at the top. This strategy works over the long term as the economy moves between boom and recession. Range trading can also be a good futures trading strategy with a given day. When range trading the trader identifies a trading range and uses it until the stock, commodity, or currency future in question breaks out of the range. Scalping Profits When using scalping as a futures trading strategy one looks to profit from the difference between bid and ask prices. Even in a sideways market traders can profit from scalping in day trading or in longer time frames. In order to succeed at scalping a futures trader must pay close attention to the market, closely follow market fundamentals, and be skillful at technical analysis. Bah Humbug! Futures markets like all markets sometimes get carried away. The twin demons of fear and greed drive prices above or below what fundamentals dictate. Eventually the market will correct. A viable futures trading strategy is to be a contrarian. A contrarian approach to day trading and longer time intervals assumes that the market will eventually correct and that contrarian will be there to collect his or her profits. In using a contrarian approach it is important to understand the fundamentals of the equity on which you are trading futures contracts and technical analysis which will allow you to see when market sentiment is about to turn. For more, visit www.ProfitableTradingTips.com
Citation preview
There are a large number of profitable day trading strategies
and strategies for longer time frames for trading futures.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Any futures trading strategy can take advantage of fundamental
market factors or technical analysis of price
trends. http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Following trends, trading within set ranges, scalping, trading the
news, and using a contrarian approach each is a viable futures trading strategy.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
To a large degree the strategy that a trader adopts will depend upon market conditions and his
or her individual skill set.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Trends in Futures Markets
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Markets go up and markets go down.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Trend following in day trading or longer time frames assumes that what is going up will continue to
go up for the immediate future and that which is doing down
will continue to go down for the immediate future.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
In each case traders use technical analysis in order to
assure themselves that the trend will continue for the term
of their trade.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
This method works for both short and long term trends.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Traders commonly use tools such as moving averages,
channel breakouts, current price, and Japanese
candlesticks in order to assure themselves that the trend will
continue for a set period of time.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Home on the Rangehttp://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Many times a commodity, stock, or currency pair will trade within
a range.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Range trading in day trading and longer intervals is a
commonly futures trading strategy.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Traders seek to buy at the bottom of the cycle and sell at
the top. http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
This strategy works over the long term as the economy moves between boom and
recession. http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Range trading can also be a good futures trading strategy
with a given day.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
When range trading the trader identifies a trading range and
uses it until the stock, commodity, or currency future
in question breaks out of the range.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Scalping Profitshttp://
profitabletradingtips.com/trading-investing/futures-trading-strategy
When using scalping as a futures trading strategy one
looks to profit from the difference between bid and ask
prices.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Even in a sideways market traders can profit from
scalping in day trading or in longer time frames. In order to succeed at scalping a futures trader must pay
close attention to the market, closely follow market fundamentals, and be skillful at technical analysis.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Bah Humbug!http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
Futures markets like all markets sometimes get carried away.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
The twin demons of fear and greed drive prices above or
below what fundamentals dictate.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
Eventually the market will correct. A viable futures trading
strategy is to be a contrarian.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
A contrarian approach to day trading
and longer time intervals assumes that the market will
eventually correct and that contrarian will be there to collect his or her profits. http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
. In using a contrarian approach it is important to understand the fundamentals of the equity on which you are trading futures
contracts and technical analysis which will allow you to see when
market sentiment is about to turn.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
To EachHis or Her Own
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
In using any given futures trading strategy a trader is wise
to know and acknowledge his or her strengths and weaknesses.
http://profitabletradingtips.com/trading-investing/futures-trading-strategy
If the market is appropriate for trend trading and that is your
long suit go for it.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy
If, on the other hand you are better at scalping than trend
trading, wait for a market that is appropriate for your skill set
and temperament.http://
profitabletradingtips.com/trading-investing/futures-trading-strategy