Day Trading the Index Futures - How to Judge Good
Entries
QUESTION: If the SP futures fall through support and go
straight down for another two points, and I want to get short,
should I a.) enter immediately, b.) two points below support, or
c.)should I wait for a pullback and then try to get short?
You've got to be patient enough to wait for entries that have
two things: first - a high probability of immediate gain, and
second - a small potential for loss if the worst happens and your
hard stop gets hit. This principle applies to all entries, and
it's useful to think about it when you're trying to decide
whether to enter on a pullback or a continuation of a move.
Entering on a pullback offers less dollar risk than chasing
the market because you can place your hard stop on the other side
of support or resistance and risk only a point or two. (Of
course, this doesn't mean you're going to hang around and let the
market hit your hard stop if things go wrong.)
Entering on a pullback also gives you a better chance of
gaining a point or so in the first 30 to 60 seconds of the trade.
This is important, though very few people seem to be talking
about it, perhaps it's a well kept secret.
I rarely (almost never) chase the market. Here's why. Usually,
if you chase the market for your entry, you'll get filled about
the same time the crowd's emotion is exhausted. The market will
pull back and you'll have to get out immediately (if you're
smart). On the other hand, if you're stubborn and you don't get
out immediately, you'll have to suffer through the pullback and
*hope* that the trend continues before your stop is hit. If the
market gets close to your stop, you'll be tempted to move the
stop away just a little bit. Once you give in to the temptation,
you've got an expensive trading habit that may eventually take
you out of the business.
Whenever you find yourself *hoping* that the market will come
back and get you out of a bad position, you really have to head
for the exits *now*. Don't even think about the commission, or
all the time you spent waiting for the setup. just get out.
QUESTION: What if there is no pullback?
If the market breaks through support and keeps going down
without a pullback, you just have to be a pro and let it go. All
the lost opportunity in the world won't take your account balance
down, but chasing high-risk, low-probability entries will cost
you.
Mike Reed is author of TradeStalker's RBI Trader's Updates. He
has been trading the Market for 23 years. His support and
resistance numbers have been published on the internet since
1996. Mike's nightly support and resistance zones are specific
and incredibly accurate. He offers an unlimited free trial of his
nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com
Copyright 2005 Mike Reed
Sri Lanka Rupee, Stocks Drop After Currency Trading Band Removed Bloomberg The central bank narrowed the currency's trading band against the dollar on Feb. 3 and Feb. 6 and today, prior to announcing its removal. The monetary authority raised benchmark interest rates for the first time since 2007 on Feb.
India Eases Currency Trading Limits for Some Banks Wall Street Journal By SUDEEP JAIN MUMBAI -- India's central bank has asked banks to approach it individually for relaxing some foreign currency trading limits and has already eased restrictions for some banks, a top official said Monday. "Some limits, based on their ...
iFOREX Adds Oil to its list of Tradable Commodities MarketWatch (press release) ROAD TOWN, Tortola, Feb 09, 2012 (BUSINESS WIRE) -- Leading currency trading company, iFOREX, has recently expanded its services, giving all Forex trading accounts direct access to oil CFDs. Targeting an audience that has little or no experience with ...
This January Azerbaijan's exchange currency trading totaled $82.5 million Azerbaijan Business Center Baku, Fineko/abc.az. The Baku Interbank Stock Exchange (BBVB) has renewed statistics of its operations. BBVB reports that in January 2012 the nine participating banks concluded 28 deals in 36 trading sessions in e-trading system (BEST).
FOCUS: Technology Buoys Retail Currency Trading, Reshapes Old Models Wall Street Journal By Eva Szalay Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Retail foreign-exchange trading is emerging as one of the biggest growth areas in the currencies space, and some of the trading firms that facilitate these flows are building up a whole new ...
Morgan Stanley Currency-Trading Head Stephen Mettler Leaves Bank BusinessWeek By Michael J. Moore Jan. 26 (Bloomberg) -- Stephen Mettler, who oversaw Morgan Stanley's interest rates and foreign-exchange trading businesses, has left the bank. Mettler, who joined the firm in 1997, retired, according to an internal memo obtained by ...
Bank of England and ECB Hold Steady, Indonesia Cuts CNBC.com [CNBC] ----------------------- MULTI CURRENCIES VS THE DOLLAR Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. Learn more: The essential vocabulary for currency trading is on Key Currency ...
RELATED ARTICLESISO 4217 in Forex
Trading
ISO 4217 is an international standard describing three
letter codes to define the names of currencies established
by the International Organization for Standardization
(ISO).The first two letters of the code are the two letters
of ISO 3166-1 alpha-2 country codes (which are similar to
those used for national top-level domains on the internet)
and the third is usually the initial of the currency
itself.
Forex Signal, Forex
Signals Advice
There are lot's of Forex signals providers out there. New
Forex traders might be thinking of looking for a reliable
Forex signals provider.
The Yin and the Yang of
Markets
I am reading a fantastic book on trading, first published
in 1924, by Richard D. Wyckoff, titled "How I Trade and
Invest in Stocks & Bonds".
Sending Signals for
Trading in Forex
Forex signals are sent by a forex firm to their subscribers
in order to buy and sell currencies. These signals are
called entry and exit signals for the forex dealers.
FOREX 101: Make Money
with Currency Trading
For those unfamiliar with the term, FOREX (FOReign EXchange
market), refers to an international exchange market where
currencies are bought and sold. The Foreign Exchange Market
that we see today began in the 1970's, when free exchange
rates and floating currencies were introduced.
New Opportunities with
Forex Trading
The simplest definition of currency trading is the practice
of exchanging one country's currency for another country's
currency. Basically, currency trading involves four main
variables: currencies, exchange rate, time, and interest
rate.
Getting a Forex Trading
Education
Many Americans are interested in getting involved in forex
trading. Before doing this, you should get a forex trading
education.
Crisis of Confidence in
the EU
The European Union (EU) constitution was dealt a double
blow, first by a French "no" vote on 29-May and then by a
follow on "no" from the Netherlands on 01-Jun. To add
insult to injury, one low level Italian diplomat quickly
called for a referendum in Italy to decide if a return to
the lira was warranted.
How To Choose Wisely A
FOREX Broker
Most traders use a FOREX broker to handle their
transactions. What exactly are brokers? Strictly speaking,
brokers are individuals or companies that buy and sell
orders according the investor's decisions.
Don't Deny
Reality
If you want to be a successful trader, you must make sure
you do not deny reality in any phase of your trading. You
cannot deny losses, price direction, mistakes you make,
being undercapitalized, or a whole host of things you would
rather not think about.
E-currency Exchange
Trading
If you are reading this article you are probably one of the
many people who have spent countless hours searching for
unique ways to make money on the internet. Very few people
have gone on to succeed and most have failed miserably time
and time again.
How Do Other Countries
Devalue Their Currencies?
Countries devalue their currencies only when they have no
other way to correct past economic mistakes - whether their
own or mistakes committed by their predecessors. The ills of
a devaluation are still at least equal to its advantages.
Online Futures Trading -
Advantages and Disadvantages
What Is Online Futures Trading?A futures contract is an
agreement to buy or sell a commodity at a date in the
future. Everything about a futures contract is standardized
except its price.
Intrenet Marketing VS
Forex Currency Trading
Have you noticed that when someone's trying to sell you
something - such as a system for making money - they always
make it look far easier than it is? Let's look at two
Internet businesses, almost as diametrically opposed as
it's possible to be - Internet Marketing and Forex Currency
Trading. You've probably heard the old Internet adage -
build a better website and they will come.
Option Arbitrage in the
Forex Market
What is arbitrage? Arbitrage is the simultaneous buying and
selling of identical financial instruments taking advantage
of price discrepancies between different brokers,
exchanges, clearing firms, etc. and thus locking in a
profit.
Chinas New Currency
Regime
The base unit for the renminbi is the yuan, which is how
the Chinese currency is most commonly referred to. The
official ISO abbreviation for the yuan is CNY, but it is
also commonly abbreviated in the forex industry as RMB.
6 Critical Factors For
Successful Trading
Success in any profession can be broken down into a number
of critical factors. Trading is no different.
What is Forex
Trading?
Forex, or Foreign Exchange, is the simultaneous exchange of
one country's currency for that of another. The way it works
is an investor who wishes to purchase or sell one currency
for another with the hope of making a profit when the value
of the currencies change in favor of the investor.
Money Management, Part
1
There are some common mistakes I've seen traders make in
the area of money management. First, let's understand what
money management is all about.
Forex Broker
A broker is any person or firm that charges a fee in
exchange for executing trades for a trader. A Forex broker
does not charge a commission for placing a buy or a sell
order the way a real estate broker would charge a
percentage fee of the total price of a sale.
MORE RESOURCES updated Thu. February / 09 / 2012
