risk management Archives • Page 2 of 2 • Futures Day Trading Strategies

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Day Trading Factors and Rules You Must Know

 

The 5 Day Trading Factors Not Many Mention

Competitive. We believe that good traders are competitive in nature because it is a zero sum game. You want to grab your share of the market, and you want to win. You are reading this article because you want to know what it takes to become better in your field of trading. There is an assertion that good traders are geeks or math wizards, but that cannot be further from the truth. Most successful traders are highly industrious and meticulous people who take the time to learn the charts and sacrifice capital in real time screen trading in order to fully understand the dynamics of live market conditions.

Realization. You accept that some trades will go against you because there might be factors involved that are beyond your analysis. You also accept that if or when some trades go against you, it is not

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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

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Candlestick Charting – Entries, Exits and Risk Management

 

There are two widely used types of charts by futures markets participants – candlestick charts and bar charts. Candlestick charts were developed by a number of participants in Japanese rice markets in the 17th century. The form of candlestick charting and analysis that is used today took form around 1755 when a rice trader named Munehisa Honma recorded rules for rice trading, based on his observations of candlestick charts. The rules are known as the Sakata Rules and form the basis for most modern candlestick chart analysis.

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A candle contains a body and up to two shadows, each above and below the body. The body is bounded by the opening and closing price for the day (or time period used) and the shadows represent any trading above or below the opening and

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Black Swan is part of Trading. Why Traders Should Always Treat the “Unexpected” as Part of Trading.

 

Last week the National Bank of Switzerland (SNB) announced that it will remove its peg to the Euro currency. As a result of this decision, the Swiss Franc currency soared 30%, and wiped out many retail traders, brokerages, and even sophisticated traders from various hedge funds. The focus of bloggers, journalists, and many news outlets has quickly turned to the impact of the SNB’s decision on many institutions who have relevance to the Swiss Franc, but little emphasis has been placed on the topic of leverage or the concentration of positions which has been one of the primary causes of trading losses during this unprecedented news event.

Currency Futures Swiss Frank Chart

Currency Futures Swiss Frank Chart

 

“Black Swan” events or “Fat Tails” are nearly

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