Basic Futures Trading Strategies | Targets Trading Pro

Learning About Basic Futures Trading Strategies

If you are just getting started in futures trading, it’s helpful to have some of the basic strategy down before diving into more complex and involved strategies for trading. We have some information about the process and basic trading strategies to get you started below.

Just in Case: What Is Futures Trading?

Futures trading is when a business gives you permission to buy and sell stocks during a point in time you both agree upon. This allows companies to better control the exchange of their stocks, and you will have an easier time tracking patterns. The system is there to help businesses while also simplifying the investment process.

Normally, you can buy and sell your investments whenever you want to. However, doing it this way makes stock trading and buying more complicated since you need to constantly track the market. However, if you go with a futures trade, then you won’t have to worry about drops and rises in the stock until it’s your time to buy or sell.

Due to this, you can agree to buy a stock during a certain time, but you could then look into selling it at another point in time. Since it forces you to work within set periods of time, you don’t need to worry about stocks as much. Instead, you can focus on getting the best deals or sales during your allotted time.

Why You Need Strategies to Succeed

Even though futures trading simplifies the process, you’ll still need a strategy going into it. After all, if you don’t create a trading strategy, you won’t know when you should buy or sell stocks. This could then cause you to make less money and even potentially lose some if you aren’t careful.

Creating a strategy will involve sitting down, looking at stocks and paying attention to the market. You’ll need to still study the market, but you can focus on a specific period of time instead of daily changes. Make sure you look at the market so you can make purchases during the low points and sell stocks during the high points.

Keep in mind that futures trading restricts when you can sell stocks, so you need to consider your position and look into getting involved at the right times. Look into the trends for different stocks so you can sign a contract at a time that will help you make money during a high demand.

Going Short or Going Long

You will hear the terms going short and long when it comes to stocks, so you may wonder what they mean. Going short means that you plan to sell or buy stocks within a short period of time to see how the price moves. However, going long means you plan to hold onto your stocks for a long time before selling them in the future.

Since these approaches exist, you should figure out if you plan to go short or long when you get involved in futures trading. Going short works well if you plan to minimize your risk of losing money, but you won’t make as much. On the other hand, going long allows you to potentially make more money, but you could also lose more of it.

This comes down to how much money you want to work with and how comfortable you feel with stocks. If it’s your first time, you may want to go short, but if you’re confident in your stocks and your knowledge, then going long could have some rewards. Just remember the risks involved before you decide on the strategy you prefer.

Important Points With Futures Trading

You must remember some other important points aside from watching the stocks and deciding on going short or long as you get involved with futures trading. You’ll also need to look into the contract that you sign. Decide if you agree with the terms and if you feel like they’ll work for your situation. If not, then you shouldn’t sign it.

You can also receive support by talking with stock experts or joining our trading community. Get their opinions on stocks and current trends so you won’t need to research the market as much on your own. Keep in mind that some of these people have been working with stocks and futures for years, so they may have some excellent advice for you.

If futures trading sounds appealing to you, try taking on the futures market with Targets Trading Pro to supplement your strategy with algorithmic analysis. Make sure you research the various strategies involved with futures contracts so you can find the most effective one for you, and contact us today for more info about TTP!

Risk Disclosure

The risk of loss in trading futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. In considering whether to trade or to authorize someone else to trade for you, you should be aware of the following:

If you purchase or sell a futures contract, you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. Thus, trading of futures may not be suitable for everyone and may involve the risk of losing part of your money, all of your money, or even more than all of your money.

The placement of contingent orders by you or by your broker, such as a “stop loss” or “stop limit” order will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.the high degree of leverage that is often obtainable in futures trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains.

Futures prices can be highly volatile and unpredictable. Price movements of futures contracts can be influenced by political, economic and many other factors which are outside of a trading system’s or your broker’s control. No assurance is given that a customer will not incur substantial losses. Futures trading is highly leveraged. The low margin deposits normally required in futures trading permit an extremely high degree of leverage. Accordingly, a relatively small price movement in a futures contract may result in immediate and substantial loss to an investor. Like other leveraged investments, futures transactions may result in losses in excess of the amount of money invested.

Our trading systems are dependent to a significant degree on the proper functioning of the computer systems used to generate trading signals. Accordingly, systems failures, whether due to third party failures upon which such systems are dependent or the failure of the broker’s hardware or software, could disrupt trading or make trading impossible until such failure is remedied. Any such failure, and consequential inability to trade (even for a short time), could, in certain market conditions, cause a client’s account to experience significant trading losses or to miss opportunities for profitable trading.

The trading systems offered here are highly technical. The profitability of trading under these systems depends on, among other things, the occurrence of significant price trends which are sustained movements, up or down, in futures prices. Such trends may not develop; there have been periods in the past without price trends. No assurance can be given that these methods will be successful in the future, or that investment results will be similar to those achieved or illustrated in the past. Although every attempt is made to ensure the accuracy of illustrated results of our trading system, we cannot guarantee such, due to inaccuracies and fluctuations in data or errors in calculation. There are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. Another one of the limitations of hypothetical trading is that such trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading.

Prior to buying or selling a futures contract, an investor will need a broker, and you must meet suitability requirements in order to trade these specific instruments. By accepting this disclaimer you are acknowledging the risks involved in trading the futures markets and are also acknowledging that you, the subscriber, and not trb futures llc, are solely responsible for any losses, financial or otherwise, as a result of using our trading systems. Trb futures llc shall under no circumstances be liable for any lost profits, lost opportunities, misstatements, or errors contained within these pages. You also agree that trb futures llc will not be held liable for data accuracy, server problems, or any special or consequential damages that result from the use of, or the inability to use, any or all of the materials published on our website. You agree to hold trb futures llc harmless for any act resulting directly or indirectly from this site, its data, content, materials, associated pages and documents. You agree to defend, indemnify and hold us and our affiliates harmless from any and all claims, liabilities, costs and expenses arising in any way from your use of any services provided by trb futures llc. Trb futures llc provides the information, services and products on this website “as is” without warranties of any kind. In no event shall trb futures llc, its managers, agents and employees be liable for any loss or injury, direct or indirect, incidental, consequential, special or exemplary damages, or any damages whatsoever arising from the use or performance of this website or from any information, services or products provided through this website.

Hypothetical Performance Disclosure

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