A very popular trading technique is divergence trading.  A divergence is where a futures contract may have a higher price on a second peak, but the indicator may show a lower price.  This described as a Classic Divergence.  We will discuss Hidden Divergences in another post.

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This market seems very top heavy right now with a nice divergence at the top.  We have discussed divergences before and they do not always show direct reversals of the market.  However, there is a better than and 80% probability that you will get a reversal, so it is always wise to play the odds.

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How to Use Pivot Points with Support and Resistance

We have attempted to give you a background in trading.  Overall I learned to trade from Dr. Alexander Elder’s Book and Workbook, “Trading for a Living” back in 1996.  I actually failed the tests in the workbooks several times before I got it right.  I still think that that book is a classic and in a class all by itself. 

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Futures trading is a risky business. The untrained, unwary, unknowledgeable, undisciplined or sometimes plain unlucky can lose a fortune — and in an agonizingly short time. In fact, the SEC requires futures trading websites to post a disclaimer concerning the potential risks involved in trading commodity futures. You’ll find a full disclosure statement on my Futures Trading Secrets website.

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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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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…)

There is an art to pulling the trigger that futures traders must learn if they are to achieve success. Setting up and learning your system, studying and knowing the market, reviewing your charts and watching your indicators — all these important elements of futures trading come together in that critical moment when you pull the trigger.

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