Futures Trading - 3 Secret Tools

Futures Trading - 3 Secret Tools Pro traders for higher profit

Here we will present three commercial tools for increasing profits all futures traders can use.

These tools tend not to be used by many traders, but heavily used by savvy pro traders to improve the profit potential and should consider in your futures trading.

Check for yourself and they will add a new dimension to your futures trading that can increase your profits from trafficking.

1st Study on the pulse of the market

The "open range technique is the ultimate device for filtering the futures traders and is very efficient, as it allows traders to take the pulse of the market before entering it every day.

Say you buy a signal from the previous days close, course could blindly buy in the open, or you can use this filter.

Here's how it works:

1st Get the open range and wait.

2nd If prices are above the opening range goes long with a target market

3rd If they are not a place for a day over 3 ticks higher at the opening range.

Here and check the pulse and strength of the market.

If prices move up your board, if prices decline from the opening band kept out of the loss of trade.

If your futures trading method is still telling you to be a long, try again the next day. If your short course, it's the same in reverse.

Sounds simple? It is, but very effective.

In our experience can reduce the loss of trades amounting to 20% using this tool and it is an excellent method for filtering your trading signals.

2nd How to never miss a big step

Richard Donchian four weeks is the rule stated below may seem simple, but it is very effective in catching big moves in futures trading.

We all know that most of the major strokes each year in the futures markets are held from market highs.

Most traders still want to buy dips to support and manage to fight for big moves. This simple tool will however make sure not to miss a big move.

Here's how it works.

Let's assume that is seen crude oil and spot buying opportunity. Instead of buying the dip, wait 4 weeks for a new high, then take a long position.

You should only use this rule only in a strong bull or bear markets do not move markets.

If you have a strong bull market, buy a new four week highs and vice versa, if you have a strong bear market sell four new downs Sunday.

Its simple and very effective tool - try it yourself and see.

3rd Intra commodity spreads

Again, another simple trading idea, which will give you to reduce risk and staying power.

All you do is trading two different months in the same goods

Your goal is to buy in the month are expected to rise up and sell it for another month to give you some protection from risk.

Normally, a month before you moved the most, so you buy and sell back month. This is known as a bull spread reversed action in a bear market is a bear spread.

For example, in the summer months are the strengths of unleaded gasoline, so if your bullish buy and sell back month as a weaker protection.

Spread works particularly well in these futures markets:

Copper, energy, soybeans, wheat, coffee, sugar, cotton and all kinds of meat expected bellies.

When used within commodity spreads in futures trading, you need to take into account the general market trend and strength of the spread. Spread is a risk control vehicles and a way to stay in power is a great tool for traders with small trading accounts.

All of these are simple tools, but do not be deceived by its simplicity. If used correctly they can all improve your futures trading and give you a greater profit potential.