Futures Trading|Optimus Futures - Commodities and Futures Education Articles

How to take Advantage of Falling Markets and Manage Risk to get into Better Trades

One of the most important aspects of trading is managing the risk on your positions. If the market doesn’t go anywhere when you are in a position, you cannot gain from it. So depending on volatility, you really have no control over your gains. You can, however, manage your losses to some degree with good risk management techniques.

Industry professionals always talk about how they buy into strength. While this may be great in a bull market, it is a recipe for disaster in today’s uncertain markets. Instead, simply do the opposite of what you feel when entering a trade. So buy when the markets are falling and sell when it is rising. This principle, while simple in theory, is really hard to execute and even harder to master. Please note

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How Lack of Trading Discipline is Killing Your Performance

How would your trading account look like if you hadn’t taken all those trades you knew you shouldn’t be in in the first place? Traders are often much closer to finding their market edge and trading profitably than they think. The missing piece is not a lack of knowledge about what to do, but the inability to follow a disciplined approach and do what they know they should be doing.

The good news is that developing discipline is usually much easier than developing a better market edge. This article will show you exactly what is needed to take your trading to the next level.

Knowing what to do and doing it

In trading, like in most other professions, it comes down to

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Is algo trading affecting discretionary trading profitability?

Will the Algo-firms and the billion Dollar High-Frequency Trading (HFT) models soon take over the financial markets and make human traders obsolete? If you are a trader, you have probably asked yourself this question before. HFT and computer based trading is the new, omnipresent “threat” which traders believe is turning trading into an uneven competition. But, is it true? How is HFT really impacting the financial markets and is there still room for human traders, trading discretionary trading strategies?

 

Computers are a natural evolution

First, it is important to understand that computers and HFT is a natural evolution of how market participants interact. Back in the days, there were no real-time charts and people had to trade based on the outdated information they got from the newspaper. The people who had access

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How Self Directed Traders can benefit from Automated Trading Concepts

The three elements you should incorporate into your trading strategy today.

The general belief is that discretionary / self-directed trading, where the trader makes all trading decisions, can outperform algorithmic/automated trading, where the decision making is based on coding a trading concept into a program. Regardless of whether there exists a “super trader” who can overcome today’s ultra-fast computations of quantitative trading systems, charting and price analysis and is able to execute just as rapidly and accurately, here are three elements from automated trading that you  should incorporate into your own trading strategy:

  1. Automated trading incorporates position sizing by computing capital and margin to equity ratios quickly and automatically. Discretionary traders may let human emotion determine how many contracts to trade. For example, if the trader is losing money, he or

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Does intuition and gut feeling play a role in trading?

Does intuition and gut feeling really exist in trading?

Whenever you hear traders talk, they use the words intuition or gut feeling to express their thoughts and to justify their decisions which are often not based on sound trading principles or trading rules, but on something different, something they ‘felt’ about what is going to happen next; or so they claim. However, it is very important to distinguish between real intuition and what traders mistake as intuition.

Trading Intuition

Intuition and impatience

The most commonly made mistake is that traders use intuition to justify trades where they prematurely entered the market and broke their trading rules. They will then say that they had a feeling that price was about to take off and that they

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