Question
How to trade s&p futures?
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5th Nov 2009 by JonB
As you can imagine, there is no single answer to this question. One rule of trading is to never say a certain method of trading doesn't work. There are just too many variables.
There are probably as many trading methods are there are different traders out there. The important thing to remember when devising a trading system or plan is that you DO have to have an edge. Traders often refer to their edge and what they mean by edge is simply what makes them better than everyone else.
You have to keep in mind that trading futures is zero-sum, that means that every dollar in profit that you net has to come out of another traders pocket. And "edge" implies that over time, you can continue to take money from other traders. So an edge really is just a statistical advantage.
Trading futures is about gaining that edge. Most people (myself included) use some from of technical analysis. Some use fundamental analysis, I've even heard of some that use phases of the moon (which sounds far fetched until you learn about Elliot Wave Theory and Fibonacci numbers, which are heavily relied upon in trading).
Whatever you choose, it is widely agreed that the most important attribute a trader has is his or her discipline. Trading successfully involves the conquering of emotions. Emotions that have a perfect place in every day life have no place in trading. Being disciplined enough to execute your strategy no matter what happened during the last trade, what the people on TV think, or what your mama said, is paramount.
As you can imagine, there is no single answer to this question. One rule of trading is to never say a certain method of trading doesn't work. There are just too many variables.
There are probably as many trading methods are there are different traders out there. The important thing to remember when devising a trading system or plan is that you DO have to have an edge. Traders often refer to their edge and what they mean by edge is simply what makes them better than everyone else.
You have to keep in mind that trading futures is zero-sum, that means that every dollar in profit that you net has to come out of another traders pocket. And "edge" implies that over time, you can continue to take money from other traders. So an edge really is just a statistical advantage.
Trading futures is about gaining that edge. Most people (myself included) use some from of technical analysis. Some use fundamental analysis, I've even heard of some that use phases of the moon (which sounds far fetched until you learn about Elliot Wave Theory and Fibonacci numbers, which are heavily relied upon in trading).
Whatever you choose, it is widely agreed that the most important attribute a trader has is his or her discipline. Trading successfully involves the conquering of emotions. Emotions that have a perfect place in every day life have no place in trading. Being disciplined enough to execute your strategy no matter what happened during the last trade, what the people on TV think, or what your mama said, is paramount.
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4th Nov 2009 In Investing
1 Answers | 174 Views
Subjects: s&p futures,