Futures market: I was an idiot when I first started trading futures. Like most new traders who eventually lose all their money, I started off as a day trader. I was sitting in front of the quote terminal for 5 hours a day trying to make a handle on S&P500 futures contract. I was even waking up at 3 AM to check the London open. I loved the action and the speed of trading on a short time frame, but it was very stressful.
Not only was it stressful but it wasn't profitable. I lost more money than I made and at one point I was just happy to break even in futures market. I remember reading the several series of books and reading about Richard Dennis, the guy who created the turtle traders. The turtle traders were a group that Richard Dennis put together after a bet with his trading partner. Richard Dennis thought that any person can learn how to trade if they acquired the appropriate guidelines. He placed an advertising in the newspaper, and he tutored people from virtually all walks of life how to be a trader. Many of the people he taught became millionaires, and some are even running their firms.
The futures market was one of the core principles that Richard Dennis taught his turtle traders is hot to trade the trend. His philosophy was that price action is the only thing that matters in trading, it is the only thing that is true. Technical indicators aren't real and predicting where the market will go doesn't work. Trend traders only ride the market like a wave. If the marketing is up, they are taking long positions; if the market is down, they take short positions. This sound rather dull but it is psychologically hard to apply when trading.
It 's hard to see a trade go against you and knowing that you have to stay in it. The turtle trading system can easily be applied to Forex because the currency market has some of the longest trends of any market. There are trends that last several years. If you can jump onto just one trade, you can make a ton of money. With this trading system, you will get a lot of false starts, and you will often get kicked out of trades because they will turn on you, but it only takes one significant trend per year to make you the bulk of your money.
This is the same system that John Dunn uses. He is famous for taking a small investment and turning it into a 300 million dollar fund. His system is always on the market and is always trading. When it gets onto a trend, it stays with it until it ends. There are years when his systems don't make any money and years where it makes a killing. As said, it is psychologically hard to trade like this but for those who can, they will see themselves earning more money, while having to spend less time slaving in front of a computer all day.
Trading is dull. When you're earning profits, you're thinking about how incredible futures market trading is and the way to broaden your trading to realize enormous success. When you're losing, you frequently consider abandoning trading entirely. After some training, it is possible to manage both psychological and emotional extremes. You'll likely in no way command them entirely, however at least don't allow enjoyment as well as lose hope lead you to make unnecessary alterations in your strategy.
Because precise trading can be boring, do not rely on trading as your main pleasure in life. Regrettably, the thrilling elements of trading, for example, simple analysis as well as trade choices, are disadvantageous. Actual trading is repeated and quite boring. Therefore, if you rely on trading for the absolute pleasure, the quest for fun will most likely cause you to be a loser. If you can afford it, fine. If not, seek your entertainment elsewhere.
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