futures contracts Archives • Futures Day Trading Strategies

Posts Tagged Under: futures contracts

The 7 deadly sins of Stop-loss and Profit Taking placement

 

Many traders spend the majority of their time perfecting their entry-picking skills without realizing that choosing an entry is just one aspect of a good method. Setting Stop-Loss and Profit Taking orders are equally, and sometimes even more important, than knowing how to enter a trade. The following 7 points will help you understand why a professional and thought out Stop-Loss and Profit Taking strategy can make a huge difference in your trading and how it can potentially improve your current approach.

  1. Choose your stop before your choose your Profit Taking

Most traders set their stops and targets in the complete opposite way of how it should be done.

First, you should define the stop loss level and identify a price level where your trade idea is proven wrong. Do not pick a stop loss level based on the profit potential and the reward to risk ratio you want to achieve.

After you

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Scaling in, Money Management and Position Sizing-Deciding on the Number of Contracts

 

Today we want to address a trading mistake we see way too often – the “wrong” choice for the amount of contracts, which can lead to a number of trading problems. Most traders are not even aware that what they are doing is influencing their trading performance in a negative way.

After reading this article, you will see how the contract size influences your trading decisions in ways you haven’t considered before.

 

Why trading with 3 contracts is easier than using just one

Before we get started, we need to make a point. It is not so much about the exact amount of 3 contracts, but the general idea behind trading with multiple contracts vs. just 1*. Many retail traders, especially when starting out, are scared of losing money and then just buy or sell 1 contract to enter a position without knowing about the implications.

Although those traders believe that their choice is

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6 elements of professional risk and money management

 

Risk and money management is an underrated trading element because, it seems at first glance, that looking for yet another entry methodology will be more beneficial for a trader. Nevertheless, many professional traders do not necessarily see themselves as traders, but at as risk managers.

“At the end of the day, the most important thing is how good you are at risk control.” – Paul Tudor Jones

The 6 following elements can help traders not only make better trading decisions, but also improve their outlook on trading in general and adopt a professional risk and money management approach.

 

Money Management

All graphs and performance figures are for illustration only. There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.  The use of stop-loss may

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