Currency Futures Trading

For futures traders looking for a little extra, come to the DAY TRADING FUTURES WAR ROOM. The Trading War Room is where I will offer live analysis, live trade recommendations, a trading simulator absolutely FREE. I will not teach how to day trade futures, but I will share with you a perspective on trading that is no nonsense approach. My bet is when you see the value of the Day Trading Futures War Room, than this is where you will eventually want to TRADE.

The bottom line, I am a Registered Commodity Trading Advisor and I have placed thousands of trades over the last decade. I have a wealth of experience not only in analyzing futures markets, but also in the application of analysis techniques to the actual battle (trades). I not only understand the importance of good analysis, but the importance of being in the right frame of mind.

Just because day trading futures can make you money doesn’t necessarily mean that day trading futures is something you should undertake. In my opinion, you have to love the game of Day Trading Futures and be willing to commit the time and resources that are required. Day Trading Futures isn’t really something you should take on because you’ve heard it’s easy and the guy on the Internet has got the magic system that has a 70% accuracy rate. 

Now, if you have traded or are trading then you will understand that the daily frustrations of trading can get to you. Even if you are doing everything right, in the isolation of your trading environment, when things are not gong your way, who do you tell? How do you process that stress? This is when we are vulnerable to making bad decisions or wrong choices. This is the slippery slope of Day Trading Futures. This is one of the main driving forces behind the Day Trading Futures War Room. Trading n my opinion is very personal. We all have our own techniques on how we enter trades, manage positions and exit the market. A real futures day trader understands that it’s not so much the technique, but in the discipline, in which you execute, manage and exit the position.

So, if you are Day Trading Futures and are looking for an edge, or frustrated with your results then don’t hesitate. Schedule a Private Presentation, so that we can get acquainted and you get an introduction to the DAY TRADING FUTURES WAR ROOM.

If you are new to day trading futures, or are seriously considering day trading futures, simply schedule a Presentation on the Potential and Risk of Day Trading Futures and determine for yourself if day trading futures is right for you.

There is sginificant risk of financial loss when trading futures and you should carefully consider whether such an investment is right for you in light or your financial position. Trading futures is not suitable for everyone.

Day Trading Strategies encompass a multitude of sub categories in regard to day trading strategies such as, scalping; short-term trading and intra-day swing trades. All these sub categories of day trading strategies are based on the same fundamental idea, which is that all open trading positions will be closed by the end of the trading session. The actual particulars in regard to profit targets, risk parameters and time in the market vary significantly. Which intra-day strategy is best, or best for you? 

First let’s examine each day trading strategy, so that you can compare.

Scalping is referred to as an intra-day trading strategy that attempts to make money on small price changes and or the difference between the bids and offer. Traders who utilize this strategy will execute hundreds of trades a day trying to capitalize on split second changes in a futures price. Scalping techniques are often implemented by automated trading systems that utilize sophisticated mathematical calculations to enter, manage and exit positions very quickly. In my opinion, scalping the market in this manner is best left to those utilizing the automated trading systems that are utilizing algorithms to trade the futures market.

Short-Term Trading is an intra-day strategy that attempts to make money through larger price moves in the futures market. Once again, the actual particulars in regard to profit targets, risk parameters and time in the market can vary significantly from market to market when utilizing a short-term trading strategy. A short-term trader can also implement a multitude of trades within a trading session, but typically far less then a trader utilizing a scalping technique.

Intra-Day Swing Trades is an intra-day strategy that attempts to make money by capturing the meat of a move in the futures market. The particulars in regard to profit targets, risk parameters and time in the market will not only vary significantly from market to market, but will vary from day to day in the same market based on market conditions. This day trading strategy will trade the least amount of contracts on a daily basis, but can still offer a multitude of trades within a trading session.

Utilizing anyone of these day trading strategies is just one piece of the day trading process and each strategy has many trade triggers, money management techniques an exit strategies that can be applied to each day trading strategy. I will offer different day trading techniques with an assortment of trade triggers, money management ideas and exit strategies that can be utilized or modified, depending on a traders objectives, risk tolerance and timing restrictions. Once again, I do not guarantee or promise implied or otherwise that utilizing any day trading strategy will result in profits or limited losses.

There is significant risk of financial loss when trading futures and trading futures is not suitable for everyone. Therefore, you should carefully consider whether such an investment is right for you in light of your financial position.

Why would any sane human being consider day trading the most aggressive markets in the world? The reasons are not as far reaching as you might think.

In my opinion, the reason people Day Trade Futures are based in two simple facts.

The first fact has to do with the capital requirement that is necessary for day trading futures which can can be between $2,000 and $10,000 U.S dollars. In my opinion, compared to other alternative money making opportunities, this amount is relatively small. Now, a trader with $2,000 dollars compared to a trader with $10,000 dollars will be more limited in regard to strategies and markets, but having more money doesn’t guarantee that a day trader will be any more successful then the trader with the smaller account.  

The second fact has to do with the opportunity a day trader has in day trading futures. A day trader has the potential to make money every single day. It doesn’t matter if it’s raining or the sun is shining, it doesn’t matter if the markets are rising or falling.  An astute trader can at least put himself or herself in position to potentially make money everyday. What else can anyone looking to make money ask for?

Now, that doesn’t mean that all day traders will make money. The reality is if day traders can and do lose money everyday. Why people lose money encompasses a broad scope of reasons, which in my opinion has to do more with a persons mental makeup then the strategies they implement, or the size of their account. But never the less, day traders can and do lose money. So don’t think for one moment that trading futures utilizing any trading strategy is free from financial risk. The bottom line is a simple one. There is significant risk of financial loss when trading futures and you should carefully consider whether trading futures is right for you in light of your financial condition. 

So, how can you determine if day trading futures is right for you? Schedule a PRIVATE PRESENTATION and discover why people from all over the world trade the most aggressive markets in the world. Don’t hesitate act now and schedule a PRIVATE PRESENTION, so that you can determine for yourself if the potential of day trading futures is worth the risk.

I always write about the fact that day trading futures isn’t for the meek, or garden-variety-investor, but for those who have the intestinal fortitude to day trade the most aggressive markets in the world. Now, when do you think you need a strong stomach? Is it when a futures trader is winning every trade? Do you think it’s the first trade of the day a futures trader places? Or is when the last six trades a futures trader has placed went 0 for 6?

If you selected the last answer then you are right. The heat tends to build up in your body when your losing not winning and that’s when things seems a little less clear. This is when a futures trader relies on their training so to speak. These futures traders understand that losing is part of the game and as long as they are doing that right (losing) then that should assist them until the tide turns.

Think of it like a combat soldier, not every shot is going to hit it’s target and is some battles you are going to be pinned down by the enemy. You could retreat from the battlefield, which is perfectly ok. You could also return fire, reassess the battlefield and reposition yourself trying to get a better shot at the enemy. Mind you, in trying to reposition yourself you are probably going to be taking fire from the enemy and this is probably when you need to call on your intestinal fortitude.

So, think of day trading futures the same way. It’s when the market seems to have a futures’ trader pinned down that they are required to call upon their guts. Now, that doesn’t mean these traders abandon their discipline or training. If a futures trader is going to engage the market when that trader seems to be pinned down by the market, a disciplined trader will continue to use their stops (if that is part of their strategy), take the trade that they are trained to take and monitor the flow of the battle. Remember, in my opinion I think trading is a game of adjustments and making adjustments in the heat of battle is part of the day trading game.

This is what I am referring to when I say a futures day trader needs the intestinal fortitude to day trade futures. It doesn’t matter if you are a discount trader calling your own shots, or a retail client that is utilizing the expertise of a futures broker, the point is at some point you will probably have a stomach check. Remember “Day Trading Futures “isn’t for the meek or garden-variety-investor, but for those who “Dare to Trade,”

There is significant risk of financial loss when trading futures and options. You should carefully consider whether such an investment is right for you in light of your financial condition.

In an article I wrote yesterday, “Currency Futures Trading Having a Battle Plan”, I wrote about the importance of thinking ahead and trying to anticipate where the market might be or how it might look technically at some point in the future. To reiterate why I think this is important is because as a trader, it is my technical opinion that you want to be in front of an idea not behind it. Think about for a moment.

If you are trading and watching the market move around and you see something that technically might be setting up the way you would like, what do you do? You might start to zero in on the market by assessing different time frames or looking at your trade triggers, but if you’re an intra-day trader a lot of times by the time you start to focus in the set-up it is gone. So, then what do you do? Do you chase the move, or maybe you get a little frustrated and begin to get a little tilted. What happens to your trading then?

Here is an excerpt of a Currency Futures Trading report I wrote for Tuesday September 15, 2009.

“If a currency trader wants to play the short-side of the Canadian Dollar then the 5-day moving average (.9259) might be a good jumping off point and with any significant pop through this average could be utilized as a technical cue to step out of the short. I would like to point that between the two areas of concentrated volume (.9232 & .9280) there might not be that much resistance to an upward move, therefore it’s possible that the Canadian Dollar spikes through the 5-day moving average to the bottom of the top level of concentrated volume (.9280). Therefore, in this technical structure a trader could place one trade close to the 5-day moving average with a tight just above the average and if the market spiked a currency trader could reset closer to .9280.” {see chart below)

You can see that the first part of this report illustrates how a currency trader might play the potential movement of the Canadian Dollar, or maybe what a currency trader might look for in the technical structure of the Canadian Dollar. Now compare that with the actual action today (review chart above). You can see that the first potential scenario and the second potential scenario look an awful lot like the action we seen in the Canadian Dollar today.

So, what does this mean? First I would like to clarify that “Past Performance is not Indicative of Future Results and by no means am I implying that by implementing a trading ideas will result in profits or limited losses. My point is to illustrate to you, that by thinking ahead on what the market may look like at some point in the future will assist you in being in front of the action rather then behind it.

Discover the Potential of Short-Term Trading Strategies in the Currency Futures Market.

When you step into the currency futures market are you executing from an offensive plan of attack or are you trading based on the current price action? Think of you yourself as a combat soldier for a moment. Are you entering the battle zone with an idea of where the enemy is and how you might engage the enemy, or do feel like you’re being ambushed by the enemy?

If you feel the market is ambushing you, than maybe you’re not thinking ahead. Remember, for me trading is about trying to anticipate where the market might be and how I might engage the market at some point in the future. Think again like a combat soldier. You get intelligence from superiors on where you think the enemy is or will be, and then as a leader of your unit you create a plan on how you want to engage the enemy.

Currency Futures Trading is similar in my opinion and this why. As a currency trader you want to anticipate the market and create contingencies on potential market movement. Here is an example of a report I wrote for Monday September 14, 2009, which could be considered intelligence and should not be construed as a way to engage the enemy (trade triggers).

“If a currency trader want to be short the Japanese Yen then a break below the 24-bar moving average (blue) on the 60-minute chart could trigger a short position. In this scenario a currency trader is looking for the Japanese Yen to pull back to the 5-day moving average (1.0940). If the Japanese Yen were to run back through the 24-bar moving average by x amount ticks, then this could be a cue to abandon the short position.”

Remember, if you are thinking like a combat soldier, then this briefing (currency technical report) on the potential enemy whereabouts is in my opinion very valuable. Let’s take a look at the battlefield (see 60-minute chart below).

This chart shows a break below the 24-bar moving average (blue), which was a battle scenario I created the day before. How a currency trader enters the market based on the intelligence comes down to personal preference. Now, let’s take a closer look at the Japanese Yen by assessing the 5-minute chart (below).

Again, you can see where the price went through the 24-bar moving average and how it held below the average on a retest of the average hours later. Also notice that the 5-day moving average is still well below the price of the Japanese Yen. Thought the closing price of 1.1003 today and a projected opening price around the same price as the close would put the 5-day moving average somewhere near 1.0963, which is very close proximity to the low of Monday’s Action (1.0979).

To get tomorrow’s intelligence report, simply request the Free Currency Futures Trading Report. If you want live analysis, simply request to join me in the Trading War Room.

Thanks again and I look forward to your comments, suggestions and or questions.

Pleas Rate this Article, “Currency Futures Having a Battle Plan.”

Before a currency trader places an order to enter the market, where did that currency trader get their trading idea? Was it from chart analysis, news, statistical analysis or a gut feel? And once a currency trader enters the market how does that currency trader assess the data on whether to hold, fold or draw? Is the currency trader utilizing a money stop and letting the market determine their fate? Or is the currency trader watching the screen not knowing exactly how to determine if they like or dislike their current position? And doesn’t it seem that when things don’t work out, that in the confines of currency trader’s isolated environment things tend to be magnified?

These are just some of the reasons I create trading ideas from visualizing potential market movement. So, that when these scenarios actually play out then I feel less like a chicken with my head cut off and more like a sniper with a good vantage point. Now, think of yourself as a sniper, the currency report as the intelligence, at the actual trade trigger or triggers your weapon.

Here is an example of a partial currency report I wrote on Wednesday September 2, 2009 for Thursday September 3, 2009.

“The CD 60-minute chart shows that the Canadian Dollar is holding below the 24-bar moving average (blue), which might be a rather weak area of technical resistance in tonight’s session. The reason is because the more significant area tonight is the 5-day moving average (.9085). Remember, this is the area where I speculate if the Canadian Dollar bears are going to make a push it might be from this area. Therefore, if a currency trader wanted to get short then a short near the 5-day moving average (.9085) might be a good jumping off point. If the Canadian Dollar ran x amount of ticks above the 5-day moving average then this might be a cue to step out of a short position. Another way to play the downside would be to wait and see if the CD held below the 5-day moving average and then short the Canadian Dollar if it broke back through the 24-bar moving average on the 60-minute chart. In both scenarios a currency trader is looking for the bottom (.8987) of this market to fall out.

I would like to make a strategic point in regard to the potential short position.  What often appears obvious isn’t always that obvious. Now, the double bottom low I pointed on the daily chart might in fact turn out to be a trap door. Remember, a trap door only works if you think that something is solid and decide to walk over it. Well, think of the same idea in regard to the support at and around the 13-week moving average (.8994). If the Canadian Dollar pops from here tonight and runs, then traders might think that the low around .8987 is a strong technical support area. Though look closely at the 60-minute chart and notice the area above .9121. There is not much concentrated volume above that area, which might make a run seem technically stronger then it is. The reason there might not be any real concentration of open contracts in that area. With this technical insight we can create an idea for a possible long play.

If the Canadian runs x amount of ticks past the 24-bar moving average on the 60-minute chart, then this could trigger a long position. A currency trader could utilize the same average as a tool to help manage the long from. In this scenario a currency trader is looking for a pop not only above the 5-day moving average, but also above the high of .9121. A currency trader could also wait and see if the Canadian Dollar can get pass the 5-day moving average before entering a long position. In this scenario a currency trader could utilize a break back below the 5-day average or 24-bar moving average on the 60-minute chart as a cue to step out.”

Now, let’s take a look at the 60-minute chart that was posted with last night’s Technical Recap, Update and Outlook for Thursday September 3, 2009.

You can clearly see that the Canadian Dollar was trading at the 24-bar moving average (blue), which I had considered a rather weak area of technical resistance. And if you follow the report you should be able to get the feel for what I was trying to see in regard to how traders might flow through the technical structure of the Canadian Dollar.

Now, let’s move forward and look at the 60-minute chart as it is at about 12:35pm Pacific Time on Thursday September 3, 2009 (see chart below).

We can now see that the actual flow of the Canadian Dollar almost played out exactly to last night’s technical assessment. Again, “Past Performance is not Indicative of Futures Results.” With that being said, can you see how visualizing potential market movement may give a currency trader the emotional edge or confidence to execute a trade, like a trading sniper rather then a chicken with it’s head cut off?

Read my Free Daily Technical Recaps, Updates and Outlooks or join me in the Trading War Room to get live analysis.

Please rate this article, “Currency Futures Trading  Currency Futures Trading begins with an Idea.”

When assessing charts of a currency market I like to visualize the currency chart as it may look at some point in the future and not what it looks like at the time I’m looking at the chart. I also like to think of the strategic ideas behind potential market moves and how those moves may impact short and long traders, which in my opinion is much different then trying to evaluate the microeconomics or the fundamentals behind a currency move. Remember, in trading commodities for every winner there is a loser and in that simple concept is the beauty of trading currency futures.

To get a first hand look at how I evaluate the currency futures market, simply join me in the trading war room and or get my “Free Daily Technical Recap, Updates and Outlooks,” which were created specifically for the short-term trader.

If you are new to currency futures trading or commodities in general and would like to learn more about the risks as well as the potential then schedule a free webinar presentation that will help you determine for yourself if currency futures trading is worth the risk.