http://profitabletradingtips.com/trading-investing/future-trading-charts
Future Trading Charts
Both day traders and those trading on a longer timeline commonly use future trading charts to guide their purchases and sales of futures contracts. Whether one trades stock futures on, commodity futures, or Forex futures, the use of future trading charts provides an overview that is essential. No matter which day trading strategy one chooses to employ, future trading charts make technical analysis of price patterns possible. By accessing market sentiment, traders are often able to gain higher profits and limit losses in both quiet and volatile markets.
Lighting a Candle in the Darkness
The Christian Bible tells that it is better to light a candle than to curse the darkness. Another great world culture, Japan, gave us candlestick trading, a means of providing light to those trading in confused markets. Japanese candlesticks, the trading kind, are rectangles superimposed on an equity price chart. The top and bottom of the rectangle tell us the opening and closing prices of the day. When the market opens low and closes higher the rectangle, called the candle, is white. When the market closes down the candle is black. The entire range of trading for the day is demonstrated by lines extending above and below the candle. These are the shadows of the candle. The point of using the old Japanese candlestick method or modern but similar technical trading methods is that market price patterns repeat themselves. There are any number of potentially profitable day trading strategies in which traders use future trading charts based on candlesticks or candlestick principles.
Keeping Track as Well as Predicting the Future
There are two valid uses of future trading charts. The first is to have a clear idea of what you are doing when trading futures. Traders keep abreast of fundamentals that drive prices and of market sentiment of the moment. Following prices without future trading charts is trading in a vacuum. Following prices with future trading charts is trading in context and commonly more profitable and less prone to error. The other valid reason to use future trading charts is to audit one’s trading results. Smart traders keep track of how they do. This is not just a matter of reviewing trades when losses occur. It has to do with always seeking to improve performance. Traders audit results and they audit process. Results tell us if we succeeded or failed. Auditing process helps traders improve their game, make more money on subsequent trades, and learn ways to hedge trading risk and limit both the frequency and amount of losses.
Facts, Not Attitude Lead to Profits
Often times a contrarian approach to day trading futures is viewed as a negative view of life in general. This is not really true. A smart trader uses future trading charts to follow the market, assess market sentiment, and compares what he sees in price patterns to market fundame
2. Both day traders and those trading
on a longer timeline commonly use
future trading charts to guide their
purchases and sales of futures
contracts.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
3. Whether one trades stock futures on,
commodity futures, or Forex futures,
the use of future trading charts
provides an overview that is
essential.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
4. No matter which day trading strategy
one chooses to employ, future
trading charts make technical
analysis of price patterns possible.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
5. By accessing market sentiment,
traders are often able to gain higher
profits and limit losses in both quiet
and volatile markets.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
6. Lighting a Candle in
the Darkness
http://profitabletradingtips.com/trading-investing/future-trading-
charts
7. The Christian Bible tells that it is
better to light a candle than to curse
the darkness.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
8. Another great world culture, Japan,
gave us candlestick trading, a means
of providing light to those trading in
confused markets.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
9. Japanese candlesticks, the trading
kind, are rectangles superimposed
on an equity price chart.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
10. The top and bottom of the rectangle
tell us the opening and closing prices
of the day.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
11. When the market opens low and
closes higher the rectangle, called
the candle, is white.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
12. When the market closes down the
candle is black.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
13. The entire range of trading for the
day is demonstrated by lines
extending above and below the
candle.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
14. These are the shadows of the
candle.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
15. The point of using the old Japanese
candlestick method or modern but
similar technical trading methods is
that market price patterns repeat
themselves.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
16. There are any number of potentially
profitable day trading strategies in
which traders use future trading
charts based on candlesticks or
candlestick principles.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
17. Keeping Track as
Well as Predicting
the Future
http://profitabletradingtips.com/trading-investing/future-trading-
charts
18. There are two valid uses of future
trading charts.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
19. The first is to have a clear idea of
what you are doing when trading
futures.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
20. Traders keep abreast of
fundamentals that drive prices and of
market sentiment of the moment.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
21. Following prices without future
trading charts is trading in a vacuum.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
22. Following prices with future trading
charts is trading in context and
commonly more profitable and less
prone to error.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
23. The other valid reason to use future
trading charts is to audit one’s trading
results.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
24. Smart traders keep track of how they
do.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
25. This is not just a matter of reviewing
trades when losses occur. It has to
do with always seeking to improve
performance.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
26. Traders audit results and they audit
process. Results tell us if we
succeeded or failed.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
27. Auditing process helps traders
improve their game, make more
money on subsequent trades, and
learn ways to hedge trading risk and
limit both the frequency and amount
of losses.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
28. Facts, Not Attitude
Lead to Profits
http://profitabletradingtips.com/trading-investing/future-trading-
charts
29. Often times a contrarian approach to
day trading futures is viewed as a
negative view of life in general.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
30. This is not really true.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
31. A smart trader uses future trading
charts to follow the market, assess
market sentiment, and compare what
he sees in price patterns to market
fundamentals.
http://profitabletradingtips.com/trading-investing/future-trading-
charts
32. When market pricing does not jive
with what the fundamentals ought to
dictate, a smart trader often takes a
contrarian view of the current market
and places his or her trades
accordingly.
http://profitabletradingtips.com/trading-investing/future-trading-
charts