Charts don’t lie. Charts provide a visual display of the numbers that drive futures trading. Charting allows traders to effectively track and analyze price trends. Technical analysis of these price trends provides the solid basis on which traders base their buy/sell decisions.
What Trends Tell Futures Traders
May 28, 2014 By
The trend is a futures traders friend, you just have to know how to read it. Charting is an invaluable tool that helps traders identify trends. Trends tell you which way the market is headed: up, down or sideways.
Uptrend. An uptrending market is one that is steadily growing. There may be down ticks, but the general trend is upward. To identify an uptrending market, look for higher highs and higher lows. As the market runs up, each high should generally be higher than the previously set high. When the market pulls back, each low should be a bit higher than the previously noted low. When this occurs, we say the market is uptrending. Trading volume usually increases in an uptrending market. Use tight stop losses to protect your profits.
Important Definitions for Futures Traders
May 28, 2014 By
I thought that I would define a few terms that are used in the futures trading industry just as a quick refresher course. Here are some that I think are important to know and to understand when it comes to margin.
Initial Margin, an initial margin is paid by both buyer and seller. It represents the loss on that futures contract, as determined by historical price changes, that is not likely to be exceeded on a usual day’s trading. A futures account is reviewed against the market on a daily basis. If the margin drops below the margin maintenance requirement established by the exchange listing the futures or the brokerage service, a margin call will be issued to bring the account back up to the required level.
Trading Analysis Survey
May 11, 2014 By
Please take our short trading analysis survey. Those who complete the survey will receive a 20 minute consultation and a 8 page questionnaire. This is $150 value.
