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12 Tricks that Smart Traders Use to Make Fortunes in the Futures Markets
By Bill McCready www.FuturesTradingSecrets.com
8/17/2007
http://www.FuturesTradingSecrets.com
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Legal Disclaimer
IMPORTANT NOTICE: Futures and Options trading have 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 in this training course. The past performance of any trading system or methodology is not necessarily indicative of future results. Day Trading Involves Risks and You Can Lose a Lot of Money. Hypothetical or simulated performance results do not represent actual trading. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. By viewing this page 1 acknowledge that I have read the above statements and am aware of the risks associated with trading. Venture Planning Associates Inc. acts as a marketing agent for this training program. It does not warrant or represent that the material is accurate or will increase trading profits for anyone purchasing or using this product. All charts and techniques are provided for training purposes only. CTFC rule 4.41 - hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
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If you are not using these types of leverage, why are you waiting? Get busy using at least three of these types of leverage right now to move toward your financial goals faster and with less stress on you. My proven leverage building approach begins with 5 Key Methods: 1. Find an experienced Mentor 2. Identify tools and skills used by experts 3. Incorporate checklists that advance the system 4. Connect with a Support Network 5. Develop a Mastermind Group Briefly lets look at how these five methods work together to build leverage. 1. An experienced Mentor teaches what he or she already knows how to do. A mentor has perspective from years of actually day trading, plus proficiency gained from developing an effective trading system. An experienced mentor has the patience to guide you in day trading without throwing you in too soon or micro-managing your trades. Take time to find the right match for your mentor. Take time to network with the experts at seminars and investors meetings to identify a potential mentor. Then make sure the mentor-mentee relationship is a two way street in which the mentor receives equal value in return for guiding you toward success. 2. You need a good quality computer and high speed Cable or DSL internet connection plus a large flat screen monitor. Higher resolution, larger monitors are easier on your eyes. They help you focus on charts and important market indicators. If you prefer a lap top computer to a desk top, a compromise is a docking station so you can enjoy the
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Those are the general business advantages and theres still greater advantages to trading stock indexes such as the eMini S&P, the Russell 2000, DAX, Hang Seng, Nikkei and Forex markets. No steep learning curve you do need to know yourself and how to handle emotions No worries about market direction profit short or long anytime No individual stock shocks a general market sentiment No interest charges you put up the margin first No restrictions on markets to trade No restrictions on time frames to trade No fears of inflation or recession you can weather both of these conditions and make money while others complain No big transaction fees - $5-$10 per contract NO BOSS - Total freedom to make all your own decisions!
The indexes smooth out all the news shocks except major world or national issues and allow you to trade the psychology of how the world feels about your current economic situation. As you probably know, 90% of all mutual funds never beat the indexes. So why not trade what works best? The indexes are the most liquid and easiest market to trade with the best leverage.
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The other thing about risk is that if you have a profitable money management system, that you believe in and TRUST, you will dramatically reduce your risk. (See Truth 5) Start small and build your faith and belief in your system. Trade larger until you feel uncomfortable with the risk. You have now discovered your intuitive risk tolerance. Back off a few contracts and concentrate on hitting singles and doubles (to use a baseball metaphor). The home runs will come, but dont swing for the fences every time. Consistency is the key to becoming very profitable.
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Click here for more information about the Futures Trading Secrets Support System
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http://www.FuturesTradingSecrets.com
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Try to only take Loaded Trades and never take more than three trades a day. Making money is short lived if you dont know how to manage what you make. So, we suggest that you take money out of the market, and off the table as soon as you can so that you are only playing with the markets money and not your own.
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DO NOT CHEAT. You can play all types of games on a SimBroker and all you are doing is cheating yourself. Practice as if REAL MONEY is on the line. Keep a meticulous trading log with the SimBroker from the very beginning. This will highlight your progress and definitely show your weaknesses. Your goal is to get to a 70% correct trading call ratio with at least a 2/1 win to loss ratio.
The SimBroker dings your account for commissions and slippage just like the real market. Forget cheat codes, there arent any. The SimBroker allows you to gain or lose based on your decisions by testing your trading skill in a real time simulation. Trading with SimBroker gives you a feel for trading and how well you perform under pressure. Thats where practice makes the difference. Keep practicing until you achieve the results that establish your trading plan.
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The more you practice with SimBroker, the more confidence you develop to trade probabilities and accept losses as normal. That gets you ready to implement the Expectancy Formula for your trading plan.
Take the time to really understand what this formula is telling you. If you practice and get to a positive expectancy and you can actually execute the trades, then you have an absolute winner of a system Many systems we have seen promoted actually have a negative expectancy. If they advocate a 2 point loss and a 1 point gain, you can calculate it yourself. You actually need to win over 67% of the time just to break even!
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Use a maximum of five indicators of different types. Choose one from each of the first four following possibilities. The last category is only for overall daily analysis and is not much help. Trend Indicators MACDs, ADX, Moving Average Systems Volatility Indicators Bollinger Bands, Envelopes, Keltner Channels Momentum Indicators MACDs, MACDs Histogram, Stochastic, Relative Strength, Williams%R, CCI, RSI Cycles Fibonacci Retracements, Fibonacci Time Cycles, Pesavento Patterns Market Strength Indicators for volume or open interest Money Flow, Volume, On Basis Volume, Advance Decline, TRIN, TICK, and TIKI
How do I make indicators work in my trading? I use three simple indicators for a setup. Signal 1 is early and a warning, Signal 2 is a non lagging indicator (not listed here) and Signal 3 is a confirmation of the direction of the indicated. The fourth indicator is simple logic. The example charts on the next page show you an overly complex chart and a chart used in my system. (Shameless Self Promotion)
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For more information and charts of our system, visit this link now.
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Here, "S" represents the support levels, "R" the resistance levels and, "P" the pivot point. High, low and close are represented by the "H", "L" and "C" respectively. Support and Resistance levels are price targets, the points where we stay out of trades if not currently in the market. Many traders play these levels but its tough to predict and low on our probability list for making money. If you have a successful trade with a profit, get out when approaching a significant Support or Resistance level. Sit out the volatility and wait until the market decides which way to move. There are also minor Support and Resistance levels and turning points to be aware of daily. The market simply goes up or down and then retraces to the most recent high or low as a test.
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Going into the market without a solid system is unquestionably a reason to be fearful, and trying too many systems leads to Paralysis of Analysis. Find a system takes the fear out of trading with solid education and simulated experience and then stick with it. Using SimBroker, you know what it feels like to win and to lose. You also learn to respond to changes effectively and what happens when you allow fear to overcome reason.
Belief in a trading system begins with total understanding of what you are trying to accomplish and your motivation. Then you need to believe in each separate part of the system and personal practice to lock it in. Fear is overcome with familiarity, and confidence comes from recovery from unknown and unpracticed bad trades, as well as good ones.
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Your trading education should be geared to trading, first in simulation and then on the live market. Any other course of action is totally worthless if you never use the knowledge and practice to actually trade. One thing that no one can do is pull the trigger for you. I can tell you one thing with absolute certainty, when you conquer fear, greed, perfectionism and procrastination you will pull the trigger with confidence!
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If the winning percentage is less than 50% yet still makes money, then the question is, can you psyche yourself up to trade it and live with all the losses in order to follow the system? Market wizards like Van K. Tharp, Mark Douglas, Bill Williams and Bent Steenbarger say that you trade your beliefs about the market. You must know your risk tolerance, your ability to take a trade where the future is unknown, and how you react psychologically to wins and losses. How do you acquire a solid trading system and make it your own? You start with a goal that leads you to the results you desire. Then you find a superior system that teaches the basics while allowing practice opportunities in a simulated market environment. Before you actually trade in the market, you develop a plan to achieve your goals that honestly considers risks, rewards and processes to achieve your goal. Once you use the system in the real market, you experience what it means to execute the plan, closely monitor the results and make incremental changes as needed. The final step is to check your emotions to see if you can actually trade the signals and play the probabilities for gains (rather than losses). If you cant trade by your system, you will never achieve your goals. Thats a guarantee!
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Keep your conscious mind occupied so your subconscious can control the action.
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You can sign up for a free trading lesson here and receive access to a live video of August 2, 2007 market trades:
8/17/2007
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The charts are simple, the system is easy to use, and you can learn it quickly.
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