Futures traders use stop losses to minimize financial risk and prevent unexpected catastrophe. A stop loss is like an insurance policy. As the name implies, its purpose is to stop losses. A powerful money management tool, stop losses allow the savvy futures trader to manage his losses, to keep them small and contained. Properly applied stop losses can mean the difference between success and failure for futures traders.

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Commodities are the raw materials of our world, the natural resources we use to build the things we need and use. Throughout human history, man has exploited our world’s natural resources to improve the quality of human life. Futures traders trade principally in commodities (and in currencies, though that’s not the topic of today’s post). Futures markets allow commercial users to mitigate the risk of fluctuating commodity prices and provide a means for futures traders and investors to profit from those price risks. If you’re going to trade in commodities, you should know a little about them both practically and historically.Our global economy is built on three basic types of commodities, the principal players in the futures market: (more…)

Commodities, like the market, are cyclical in nature, rising and falling according to the current business cycle. Like other market vehicles, commodities are influenced by economic forces. However, unlike other market vehicles, futures traders can trade commodities profitably even in bad times.

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Playing the commodity market is viewed as (and can be) a risky game. Many investors consider commodities the market’s riskiest asset. The truth is that commodities are no riskier than stocks. Certainly there is risk, as there is in any investment. But the risk is no greater in the commodity markets than it is in any other market.

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Futures contracts are written for a specific, finite time period which means they must be rolled over on a regular basis to remain viable. Some contracts, such as crude oil, expire and need to be rolled monthly. Others, such as cotton or gold, expire and can be rolled only on certain specific months of the year. Expiration dates are specified in the contract and will vary with the asset being traded. Before you buy a contract, you should know what the expiration date is and what your rollover options are. Rollover dates are standardized for contracts of different asset classes and are set by each exchange. It’s important to know and track the specific expiration dates and requirements of futures contracts you purchase so that you don’t miss those all important rollover dates.

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Moving averages are one of the oldest trading tools. Futures traders use moving averages to reveal the underlying trend behind short-term price variations. Moving averages are a valuable indicator that can be used with other indicators to trigger buy signals. (more…)

Trading is a skill learned by observation, study, practice and a combination of mental control, money management and simple signal generation.  The Futures Trading Secrets Course shows you how to combine three simple signals into a high probability trade setup.  Adding a logical element of a prinicpal target and the application of proper money management (which includes, stops, exits, position sizing and targets) is the key to trading success. 

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“Your actions affect your attitude and your attitude drives your actions. It can indeed be powerful to get your actions and your attitude working consistently in the same direction.”

As we enter a new year, I find these words from the Daily Motivator of particular import to my life as a futures trader. More than anything else, your daily attitude affects your ability to perform successfully as a futures trader. If you stay positively focused, you will be able to assess your position will confidence and pull the trigger at the precise moment to ensure maximum profitability. Allow negativity or self-doubt to eat away at your confidence and you will fail.

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No, we’re not talking Chinese here. We’re talking about the NASDAQ 100 e-minis, also called noodles. E-minis were introduced with the rise of electronic trading and are now traded on the NASDAQ 100, S&P 500, Dow Jones, bond, currency and other markets. In our Futures Trading Secrets course, we recommend that our students trade the e-minis. Why? (more…)