On October 19, 1987, the Dow suffered the biggest one-day percentage drop in its 111-year history (see our previous post). Known as Black Monday, that day saw the Dow plummet 508 points, causing economic panic around the world. While a recurrence is seen as slim by market analysts, they do admit to its remote possibility, and some are concerned about disturbing parallels in today’s market. History is a strict task-master and the shrewd futures trader will learn her lessons.
Archives for 2007
Black Monday Anniversary Carries Lesson For Futures Traders
October 20, 2007 By
Twenty years ago the Dow plummeted 508 points, an unbelievable 22.6%. It was the biggest one-day percentage drop in the Dow’s 111-year history causing bedlam on Wall Street and economic panic around the world. Black Monday. October 19, 1987.
“You could feel, taste and touch the emotion,” confided veteran floor broker Ted Weisberg, in an interview with the Los Angeles Times. “That day clearly was different from any other day any of us had ever experienced.”
Futures Traders Use Risk-Reward Ratio To Profit
October 19, 2007 By
Understanding the risk/reward ratio and incorporating it into your futures trading tactics is essential if you want to succeed as a futures trader. Learning to use the risk/reward ratio can help you minimize your risks and maximize your trading profits.
Hone Mind, Body To Achieve Futures Trading Success
October 16, 2007 By
Just as a craftsman keeps his tools sharp, clean and well organized, so must a futures trader keep his “tools” in peak operating condition. A futures trader’s ultimate tools are his mind and his body. Yes, we use systems, triggers, indicators, charts and other tools and tactics — all important. But without the human trigger they are useless. If you do not take care of your physical and mental self and keep yourself in peak trading condition, you will not be able to maintain the level of concentration, stamina, quick reflexes and clear thinking necessary to succeed as a futures trader.
