Learning To Make a Trading Decision

By: Chris on 2013-06-29

Futures Trading Tips

Trading the futures market involves making choices. These trading decisions or choices can occur either quickly or upon careful consideration. Both a new trader and advanced trader may sometimes have a hard time understanding this. Your gut may be telling you to go short then suddenly you find yourself looking and placing a long trade. Some may look at this as a negative characteristic, but it’s important to understand that the market is in a constantly revolving state. This means that what you may have believed to be setting up can no longer be valid in seconds.

Remember The Futures Market Sends Signals Constantly

On any given day there may be hundreds or thousands of visual clues given by the chart you’re viewing. You may be looking at taking a short trade where as shortly before everything was screaming long. Its important to be aware of all information made available when you see it, but to not stress about those you’ve missed. Looking for weak support areas that once stood out as solid or even the velocity that price approached potential support levels.

Is There a Name For This Trading Style?

There may be many names for this, but I like how Chris at Emini Room « Futures Trading once put it. Chris said ““tape recognition” , “gaining a pulse for the market”, or anything else you want to call it, but don’t call it a misuse of energy.”(Chris – Emini Room) He puts a focus on doing little things such as actually calling out loud what he notices. This way it stays fresh and becomes easier to remember down the line. I think with all of this said it is also important to stress that as valuable as this information can be don’t get overwhelmed with emotions. Remain in tune and interested with the futures market, but don’t forget that fluctuations can be both insightful and confusing. Don’t get caught up in relying on silly over done or random price movement.

About Stocks and Stocks

Stocks and Stocks has been helping traders trade for more than 4 years now. What we bring to the table is an unbiased point of view on individual stocks and the stock market.

It is our hope that you are truly able to gain some value from this approach to trading education. To best take advantage of this site it is important to truly understand concepts and not fall into the trap as most traders. This trap being moving on from strategy to strategy before you master it. Don't become a aware of many things and a master of none!

stock exchange building If you have any questions please feel free to contact me at chris@stocksandstocks.com.

Interested in futures? Join the
E-mini Futures Trading Room

© Copyright StocksandStocks.com - U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

StocksandStocks (referred to hereafter as "Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.