One of the most significant matters that any futures trader must remember to be
able to achieve success in futures trading, are proven trading strategies and
suggestions. Particularly, these are about cutting research time as well as the
uniformity, organization and researching in becoming the futures contract
trading specialist.

What futures contract trading strategies do not work?

Overpriced and over-complex futures contract trading strategies that include
complex formulas and multiple lagging indexes are generally not conducive to
successful futures trading. Many traders believe that futures trading should be
complicated and want to use complex trading strategies. Traders associate
complication in other fields to the futures trading market.

In the world of trading futures contracts, simple is better.

Success in futures trading is a result of thinking and handling one's emotions
efficiently. It is common for traders to have a problem restraining their
emotions as they interact with the futures marketplace, this is the principal
reason most traders fail to generate income in the futures market. Aspiring
traders do not understand that keeping their futures trading simple, will keep
them calm and collected while they trade. The brain will not enjoy chances as
it's, and a trading process that is complex is only going to add more questions
for the brain resulting in the trader second guessing their trading choices.
This indecisiveness can start a cascade of trading errors resulting in a blown
out account and frequently results in mental trading vs. trading on what they
see.

What futures contract strategies do work?

We're referring to strategies that are constructed around straightforward cost
dynamics and chart reading abilities; when discussing futures strategies that
work and lead to an objective mindset. A futures contract trading strategy is
constructed around cost activity. This is skill and the craft of identifying
special cost patterns. This is a lot easier said then done, as I've seen many on
the web claim without really understanding what it really is to use cost
activity.

Here are suggestions and some futures trading strategies that do work.

Futures Trading Strategies to Consider:

Futures Position Trading - Choosing a position - long or short - on a futures
contract is among the most often employed strategies. Going long entails
purchasing a futures contract until the cost reaches the goal to hold and
selling it in future for a gain.

Futures Gross Profit Trading - Trading futures contract on margin is advisable
however, extreme caution should be used in all trading activities. Normally a
percent of the contract value, as determined by the exchange, is paid as cost
variations and gross profit sum are corrected to that gross profit.

Disperse Futures Trading - This common strategy entails a trader purchasing and
selling future contracts for the exact same commodity. The strategy's primary
aim will be to make the most of the difference in the futures and cash
marketplace. Spreads may also be used for distinct commodities.

Suggestions to efficiently use futures contract for hedging:

- As expiry date strategies, difference between the costs in cash market and
futures market decline and thus hedging skill additionally decreases.

- In case of contracts for physical resolution - delivery of the underlying
asset, it is best to hold the position until adulthood.

- One must include added warning in case of hedging a place further to expiry
contracts than the expiry date in longest time.

- While taking out of a place, one must examine the effect on gross profit.

**March 2014**

Here we will look at 3 forex trading strategies anyone can use immediately. The
trading strategies are straightforward to comprehend, easy to use and will
continue to work resulting in potential huge gains in the long-term.

Let us look at these forex strategies and why they work...

Many dealers make the mistake of believing that the harder they work and the
more complex they make their trading strategy, the more likely it will work
however… there's no correlation between working hard and complication to make
forex trading a success. Trading currencies is only judged in your market timing
and the success of your trading signals.

An easy strategy will have fewer components to break in the savage world of
forex trading than a complex one and keeping it simple is best.

**#1 Strategy – Breakout Trading On Long Term**

The important tendencies start from the new market highs or lows.

It is among the easiest and best methods for trading, purchasing break outs on
the chart to fresh highs and selling fresh lows. Most dealers would like to wait
for the pullback but can’t do it, because they believe they've lost a bit of the
move. In moves that are powerful, this is not likely to happen and they can be
left observing the move pile up thousands of dollars and their not in.

If you focus on long term breakouts that are valid and time your entries with a
number of momentum indexes, you can potentially earn a fortune. The secret to
this forex trading strategy is just to use amounts that the marketplace
considers significant.

**#2 Strategy - The 4 Week Rule**

This is among the most straightforward most lucrative, forex trading strategies
trading legend Richard Donchian discovered and formulated for you.

This system is completely mechanical, based upon the breakout doctrine and
consists of only one rule:

Purchase a brand new four week calendar high, sell a fresh 4 week calendar and
keep a standing in the marketplace at all times.

That is it!

Straightforward? Yes, but it works - backtest it and see.

It is also possible to add filters to smooth the equity curve which are
discussed in our other posts.

This system has been used for over 20 years as part of our forex trading
strategy and many great dealers have been lovers, like Richard Dennis.

**#3 Strategy - Trading Purchased Oversold**

Short-term currency trading strategy for forex swing trading.

Swing trading only plans to take advantage of purchased oversold scenarios
within the leading tendency and you can do this with simple trend lines. All
costs get pushed too much up or down, because of anxiety and greed, you just
need to trade into these amounts that were drawn-out.

Once you've identified areas of opposition or support, the ultimate time tool is
used by checking unpredictability with the Bollinger group after which - the
move to be confirmed by the stochastic.

You then try to find the next one and afterwards, consider banking your profits.

Swing trading is interesting, you do not have to hold moves for long and the
strategy can be learned in just a few days. Traders must continue to maintain
trading discipline and should always demo trade for several weeks or months
until the skill has been mastered.

We presented 3 easy to follow forex trading strategies which are easy to follow.
Profitability is possible however; they can make way for long term trading
success.

By making the preceding part of your forex strategy you can move forward toward
successful forex trading.

February 2014

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**Importance and Significance of Fibonacci Ratios**

**
**
We shall base our discussion on Fibonacci Ratios on Nature. Believe it or not,
anything that follows nature would follow Fibonacci ratios. Let us look into the
history of Fibonacci numbers first.

**
**
Leonardo Fibonacci, a mathematician from Italy studied nature and came up with
the following that is popularly known as the Fibonacci series.

0,1,1,2,3,5,8,13,21,34,55,89,144…… infinite.

It is simple. Add the current number with the previous one to get the next in the above series.

**
**
A few natural examples are:

1. Breeding pattern of rabbits. A pair produces 2 pairs, then 3 pairs, then 5 pairs and so on.

2. A piano octave consists of 1 black key, having 2 white keys at its base. Then 2 black keys, having 3 white keys at its base. Then 3 black keys, having 5 white keys at its base.

3. In certain plants, the growth in leaves/stems in according to above series.

**
**
Let us take a random pair from the above series: 21+34=55. Applying simple
mathematical division on the above (not going into details here); a few ratios
are derived.

0.382

0.50

0.618

0.786

1.271

1.618

2.618

**
**
The above ratios are commonly known as Golden Fibonacci ratios and an amazing
fact is that the above results are the same when applied on to any pair of the
above series.

**
**
Out of the above, 0.618 has got vital importance as seen in nature.

1. Height divided by base of a pyramid equals 0.618

2. Circumference of moon divided by circumference of earth is 0.618

3. Ratio of frequency of Key A and Key c of a piano is 0.618. Music composed using key A and key C is very soothing to hear.

There are many more examples scientifically proven and documented. These amazing fact leads to implementing Fibonacci ratios on Charts.

**
**
Fibonacci ratios are used by chartists to determine optimum entry and exit
points, vital from a traders’ perspective. Indirectly, a proper use of Fibonacci
ratios determines potential future supports and resistances.

**
**
To elaborate further, the 0.382, 0.50. 0.618 and 0.786 are levels of
retracements (entry) or pullback. They help us find a high potential entry point
(buying or selling). While the 1.271 and 1.618 are levels of extension
(targets). Below chart explains.

**
**
The above is a EUR/USD daily chart view. The fall between May 08, 2014 and May
26, 2014 consists of the downswing. Placing Fibonacci retracement ratios on this
boundary helps determine a potential entry point at 0.618 levels around
1.3850/60.

**
**
Placing Fibonacci extension ratios on the same downswing boundary, helps
determine extension exit points (red color) at 1.3500 and lower respectively

**
**
Above chart shows a historic upswing of USDJPY between Oct 2011 and May 2013
with upswing, potential buy entry at 77.50/78.00 (the Fibonacci 0.786
retracement level) and a potential exit at 97.90/95(the Fibonacci 1.618
extension level.

**Conclusion:**

**
**
Applying Fibonacci ratios on the potentially active upswings or downswings can
make a huge difference in earning potential of a trade. This combined with
knowledge of support-resistance and trends can help Trade with Confidence.

Happy Trading!!

By Harsh Japee

**January 2014**

One of the most powerful tools available to traders or investors in the stock market is the STOP LOSS. Most short term traders use a stop loss to protect their position from change of an existing position in market direction. When a trade is entered at a price point e.g. $10.50 long - it is advisable for that trader to place a stop loss at a safe price under the initial entry price. There are two important things to consider here, the first being the potential risk reward ratio for the trade. The second thing to take into account is a safe distance to be certain that the trade won’t record a temporary pullback, taking a trader out of the position, too soon.

There is however another way to manage your risk with a stop loss position, what if we started to manage our profits and more importantly lock in our profits as price moves in the direction of the trade. For some this may seem like a daunting task and they may ask when do I move my stop, how do I know where to put it? These are both very relevant and quite crucial points in your trade management. Although this is where the true profits are made and it is what separates the continually successful traders from the ones who are still struggling to consistently profit with their trading.

You see, the traders who don't effectively manage their positions by utilizing a trailing stop loss will struggle over the long term with success, due to never being able to maximize their profits on their winning trades.

In order to effectively manage your position you first need a strategy just like you had one too enter the initial trade, you need one to manage it and ultimately exit the trade. To develop your strategy you first need to take a step back and have a look at how price reacts to certain indicators in both upward and downward trends. You are looking to utilize an indicator that when plotted on the chart the current price will not come near it until the direction of the trend changes. You can then comfortably create a trailing stop loss position under the plotted indicator which will keep you on the trade for as long as it is moving in the direction of the initial trade. When price moves through the indicator your trailing stop loss position will be activated exiting you from a potentially profitable trade and identifying possible options to in turn, trade in the opposite direction.

In regards to how often one would move their trailing stop loss would be dependent on a number of factors including traders time availability as well as time period of charts; being that you would want to adjust stop loss position more frequently on smaller time frame charts than larger. It is also a popular strategy to have your trailing stop loss automated, though we would still recommend monitoring progress for performance and peace of mind.

December 2013