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I trade the overbought and oversold condition on the ES emini contract, not the market noise. The market noise is the background noise and not a trend. I have found trading market noise is unprofitable and unforgiving. Trade the trend, not the noise. Related Article Tags: , ,
It garners more trading volume than any emini contract on the Chicago Mercantile Exchange, and has run away (in trading volume) from any other futures contract currently traded. It the pint sized version of the S and P contract that traders have flocked to in recent years. Better yet, it is specifically designed and priced for the individual trader. What's not to like? Related Article Tags: , ,
What are Index Futures?
Future contracts originate from commodity trading. A future contract is an obligation to buy/sell a certain quantity of commodity at a specific date for a specific price determined at the outset of the contract. Future contracts are frequently used for hedging risks and also for speculation. Related Article Tags: , , , , ,
With proper trading and diligence you can make a nice living trading ES Emini Contract, but that living does not come without a risk, and in order to make money you first have to understand the risk of trading a given number of contracts and weigh the potential profit. Related Article Tags: , ,
Before you begin trading in the futures market you had better know what you are doing before you take the plunge. One way to get an edge is to practice your trading in a trading simulator module before you risk your own money. Although the trades do not go to the exchange, in every other respect a trading simulator is as close to the real thing as it gets. And the best part is you can make mistakes without suffering the consequences. Related Article Tags: , , , ,
Having a stable computer system is crucial to your trading success. Imagine what would happen if your computer hangs in the middle of a trade. What happens if you suddenly get disconnected from the internet? Accidents do occur and these scenarios are very possible, I have encountered an internet disconnection while trading. Related Article Tags: , , , , , , ,
Fundamental analysis is a methodology for analysis of a company as a viable stock that you want to hold for long term. Fundamental analysis is more widespread in the world of investing since you are going to hold your companies for 10 to 20 years, you do not wish that your companies go bankrupt the next day. Related Article Tags: , , , , , , ,
The venerable stochastic indicator has been around since the 1950's, but it's popularity seems to grow with each passing year. Have a look at a true momentum indicator, the stochastic indicator and how I use this indicator day trading. Related Article Tags: , ,
I should state that I am a dedicated scalper. I never hold contracts overnight, and my average trade seldom lasts more than twenty minutes. I am looking to snatch small 2-3 point moves in the market and cash in on them. Generally speaking, I am unconcerned about the fundamentals of the market. Related Article Tags: , , , ,
My observation is that most day traders buy and sell with market orders. This strategy tells your broker or platform to buy when you execute an order as soon as you hit the enter button on your computer and buy immediately at whatever price the market is trading. I want to qualify this before getting too far down the road, I trade in a scalping style and run reasonably tight stops and try to let my winners run. Of course, who does not try to let their winners run? Many people, believe it or not, especially if they are to heavy on the number of contracts they are trading relative to their futures account balance, trade not to lose, as oppose to maximizing their profit potential. Related Article Tags: , , ,
There is not a lot of middle ground when comes to the trading of gaps; traders either swear by them or ignore them. Gaps are formed by a variety of factors, and come in two distinct flavors. Some gaps are formed by institutional traders, others are formed by retail and novice traders, and it is important to be able to identify each type of gap in order to trade it properly. Related Article Tags: , ,
Much of the success traders enjoy is in the self-discipline they employ, and the habits the develop. Good traders have specific parameters they work within and seldom deviate from their agenda, regardless of the circumstance. Related Article Tags: , , ,
Loss of your data feed is just one of the problems futures traders face throughout the course of the day. Since your computer is such an integral part of your living and income, you must plan for unexpected problems that may occur and use best practices when trading. Related Article Tags: , ,
Isn't It Time for a Better TRIN (Trading Index) Indicator? The Arms Index, also known as the TRIN (Trading Index), was developed by Richard Arms in 1967 and since then has become a well-known measure of market strength. At the time, the idea was revolutionary. By combining two non-price variables in a very simple formula, the result was a single number that indicated whether market internals were bullish or bearish. Related Article Tags: , , , , , ,
This particular topic is one that is sure to stir up some traders, and rightfully so. The question is a simple one, really, and I am asking whether you should stop trading when you hit a pre-set profit goal. When I am between $500-$1000 in profit I generally get overly conservative or stop trading. Related Article Tags: , , ,
There is a misconception that some individuals are born to trade successfully. I have not met this individual yet, as most traders master their profession through hard work, diligence and dogged determination. These are the qualities of a good trader. Related Article Tags: , ,
Originally published by Welles Wilder in 1978, the RSI is a gem when used properly. Not particularly good as a primary indicator, it shines in confirming entry trades and exit trades. Related Article Tags: , ,
The NYSE Ticks are data used illustrate the relationship between the aggregate number of rising stocks vs the number of falling stocks. This data, when filtered, can give you some of the best trading info from which to initiate buys and sells. Related Article Tags: , ,
I think the most important fact, yes I said fact, regarding pivots points is they are a prediction of future support and resistance levels. The key word in the previous sentence is "prediction" and traders should keep that in mind when trading pivot point systems. I have always been conflicted as to why pivot points (PP) become important throughout the course of the day. Most traders begin their day by plotting pivot points onto their chart. With so many people using similar formulas to plot PP it is little surprise that the market stops at the calculated support and resistance levels. Do the support levels and resistance levels occur because everyone is using a similar system or are they part of the natural function of the market? Related Article Tags: , ,
If there is a handier trading tool than the Commodity Channel Index I would be hard pressed to identify it. Many day traders have flocked to using this indicator for it's sheer versatility, if nothing else, and it's following grows yearly. The Commodity Channel Index (CCI) was introduced in 1980 by Donald Lambert as a way to chart cyclical turns in commodity prices. I don't trade commodities, so you are probably wondering why I would take an indicator and plug it into trading something like the financial indexes. Related Article Tags: , ,
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