Futures, common sense trading. Futures trading instructions
For some reason, it so happens that people who do not have money want to earn a lot and as quickly as possible, despite the risk.
At the same time, when you already have a substantial amount in your hands, greater preference is given to options with minimal risk, albeit with less profitability.
Futures are just one of those options; trading futures is easier than other exchange-traded assets, and at the same time much more profitable than investing in deposits or bonds.
The main thing is to grasp the essence of the trading process itself, to understand the dynamics of price movements for the most popular futures.
Perhaps the fact is that it was written by employees of one of the brokerage companies , and therefore there is less theory in it than in standard textbooks for universities.
Summary:
We look at the market, charts - charts in the trading platform as the main tool for analyzing the futures market. Chart time frames, used terminology and concepts.
Charts - this chapter is more devoted to trend analysis and its properties. You will also become familiar with methods for determining trend direction.
Support and resistance levels – general concept, formation of a price channel, principles of constructing support and resistance levels.
Reversal patterns and continuation patterns are examples of chart patterns that can help in predicting the future direction of a trend using chart analysis .
Entering a trending market - determining the most successful entry points, taking into account the specifics of futures trading.
The goals are to determine the size of possible profit before opening an order. Planning the profitability of the transaction taking into account the market situation.
Indicators – an overview of the most effective indicators that can be applied to this type of trading.
Report on traders' commitments - we analyze market sentiment using a report or indicator of traders' open positions .
Let's put it all together - summing up the basic principles that should be followed when trading futures.