Futures Market 101 ( How to trade Futures?)

Futures Market 101 is provided free to help futures traders with a summary of some of the more important futures trading basics concepts of futures trading. If you'd like to learn more about trading on the futures market, fill out the form below to download 'Opportunity and Risk'.

First Steps in Trading Futures Market Basics

  1. Patience for a real clear situation.
  2. Trends and sound fundamentals are almost perfect market tone.
  3. Calculate risk reward: at least a 1 to 3 ratio.
  4. Place stops beyond some technical barrier, a hard to reach spot.
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Follow These Technical Indicators

  1. ADX: Average Directional Movement Index.
  2. RSI: Relative Strength Index.
  3. Moving Averages.
  4. Stochastics.
  5. Key Reversals.

Pitfalls to Watch For in Futures Market

  1. Risk control, poor money management, and too many correlated trades.
  2. Make Rational Bets.
  3. Don't Wish, Don't Hope. Diagnose the process of trading.
  4. Cut losses. Ride winners. Close positions you are not comfortable with.
  5. Don't over trade.
  6. Expect the unexpected or the extreme. Don't be too tied to the past.
  7. Use different strategies so you don't have all your orders going in at one point.
  8. Buy on break outs: New Highs! New Lows!
  9. If there is a major trend, your approach should assure that you get in that trend (sooner or later) depending on how the market reacts to news.
  10. Decrease your trading volume when you trade poorly.
  11. Increase your trading volume when you trade well.

To get the intermediate information 'Opportunity and Risk', please fill out the form at the top.


*Note: Some futures options trade based on different futures contract months and should always be considered in your trading. Don't hesitate to call for help with any of these strategies or explanations. Remember, the key is still going to be picking the general market direction correct. Therefore, you must analyze and study each market situation with several different trading scenarios and determine which one best suits your risk parameters.

The art of trading these strategies is deciding when, where, which markets, and what ranges to use. If you are an inexperienced trader use these strategies through the broker assisted program.

The material contained in 'Futures Market 101' is of opinion only and does not guarantee any profit. These are risky markets and only risk capital should be used. Past results are not necessarily indicative of future results.

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