Futures Blog by Bill McCready

Futures Traders Must Understand Risks In Commodity Trading

Futures — Tue, 01 Jul 2008 03:05:42 +0000

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. (more…)

Futures Traders Need To Watch Rollover Dates

Futures — Fri, 23 May 2008 18:49:13 +0000

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. (more…)

How Futures Traders Use Moving Averages

Futures — Thu, 01 May 2008 02:25:14 +0000

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 Signals for 03/25/08

Futures — Wed, 26 Mar 2008 05:55:52 +0000

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. (more…)

Positive Attitude in 2008 Will Reap Rewards for Futures Traders

Futures — Thu, 07 Feb 2008 06:35:14 +0000

“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. (more…)

Futures Traders Make Money on Noodles

Futures — Tue, 08 Jan 2008 21:39:20 +0000

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…)

Futures Traders Must Learn the Art of Pulling the Trigger

Futures — Sun, 30 Dec 2007 04:03:30 +0000

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. (more…)

Keys to Becoming a Successful Futures Trader

Futures — Sat, 29 Dec 2007 23:25:42 +0000

There are a number of qualities that define a successful futures trader — the keys to success.

Discipline. Discipline is the primary key to successful futures trading. You must have the discipline to learn your system, study it daily and tweak it to perfection. You must have the discipline to keep a trading log that records your trades, as well as the market conditions, thought processes and external influences that affected each trade. Without such a log, you are doomed to repeat your mistakes, rather than learning from them. You must have the discipline to do your homework, to study and keep up with the market, to keep your system current.
Patience. You must be patient if your trading system is to be effective. By trading too soon, you negate the value of your trading system. You must exercise patience and give your system time to work.
Loss. Loss is part of the trading game. You must be able to take losses in stride and get right back in the game. When your system dictates that a loss be taken, you must have the discipline to follow your system, take the loss quickly, minimize the damage and move on.
Perseverance. There are no overnight success stories in futures trading. Success is a matter of building experience, working and perfecting your system, minimizing losses, and capitalizing on small gains. Success, particularly at the beginning, is more often a series of small steps than giant leaps.
Confidence. Above all, a futures trader must have confidence in himself. You must have confidence in your system and your ability to work your system — to pull the trigger. Futures trading is a game of risk. You can’t be afraid to act. You must have confidence in your ability to read your system and act. Those who hesitate are doomed to lose in the futures trading game.
Flexibility. The market and market forces are ever-changing. You must have the flexibility to change with the times, to make changes to your system so it remains viable and in tune with current market conditions.

Four Key Elements of Futures Trading Success

Futures — Sat, 15 Dec 2007 23:27:05 +0000

There are four key elements to achieving success as a futures trader:

Self-confidence
Discipline
Ability to handle loss
Profitable trading system

Self-confidence. If you aren’t confident that you can become a successful futures trader, you might as well pack it in now and save yourself a lot of grief. Successful futures traders are bold, aggressive and self-assured. They do not lose faith in themselves when they lose. They have the courage and self-confidence to keep trading. Futures traders are risk takers. We are the Mario Andrettis of Wall Street. (more…)

Moving Averages Give Futures Traders The “Big Picture”

Futures — Sat, 15 Dec 2007 21:08:04 +0000

“Back up and look at the big picture.” That’s good advice for futures traders. Moving averages help us sort through sometimes chaotic price variations to see what is really happening in the market. Moving averages allow us to see the forest through the trees. By stripping away price volatility by removing both unusually high and low price variations from consideration, moving averages show us the actual underlying trend. (more…)