Insiders Guid To Trading Futures

By Author: Barbara Cohen
Total Articles: 2
Comment this article

Insiders Guide to Trading Futures

Today, you will learn one of the amazing trading styles you'll need as you start to find out about how to trade Futures Contracts -- "futures pivots".

Just how did I learn about futures pivots? It took me years of live trading, talking to traders who -- let's just say -- would know. And I lost big time finding out.

There is an old adage in the trading game ... if you have not lost money, you cannot name yourself a trader. As I see it I am certainely qualified to be called a "trader."

In addition shows I have learned the hard way what doesn't work ... and what does. If I refer to becoming a "12-minute trader," that refers to the total amount of time I spend in the futures market daily, as that's what I need to be profitable.

Does this kind of trading seem like it will work for you? Let's take a deeper look into "futures" ...

Just what are Futures Pivots, and How Do They Affect Trading?

We'll discuss that in a minute. To begin, we need to be especially aware of the environs where we are utilizing them.

To comprehend the importance of pivots ...
... trading, you must first understand that the futures market is very controlled. I might even venture to say that the futures market is completely controlled. If it were not a controlled environment for trading, so many shares and so many contracts could not trade every day so successfully.

You say you don't buy it that the futures market is controlled? Allow me to prove to you with an example of a controlled market.

Near the end of May 2009, Treasury Secretary Tim Geithner visited with Chinese government officials. In this meeting, the Chinese provided Geithner an intimidation, with the meeting likely being something like this.

the Chinese told him they have invested heavily in the U.S. stock market and in U.S. Treasury bonds. The Chinese are able to In What way does it help you become a 12-minute Trader? The belief is that the market is controlled. The market "insiders" realize where they are moving the market, and just how fast they will move it to get there.

There are true trading rules they abide by, one of which is pivots.

Here's the idea to becoming a 12-minute trader: know the unwritten laws.

Trade when they trade ... go long when they go long ... sell when they go short. Become a shadow in the market. Follow the markets' rules.

Pivots are support and resistance price levels that institutional traders use on a daily to control how high or how low the market will appreciate/depreciate on any given day.

There are actually 17 pivots -- nine inter-day (happening over more than 1 day), and eight intraday (happening in just one day).

The futures market hedge fund managers monitor the futures pivots, and the stock market managers use the stock market pivots. To be a successful 12-minute trader, you need pivots displayed on your chart to advise you where the market may go and where the market may just stop, as if on a dime.

Want to learn more about trading strategies and what you must have for software to be a 12-minute trader? Participate in a Monday night Webinar sponsored by http://www.shadowtraders.com and see how effective Pivots can be in trading.

About the Author

Barbara Cohen is an guru in the area of E-Mini Futures Education. She is the CIO of Shadowtraders. Shadowtraders offers education to individual investors to help them to to learn to trade the Futures Market . For more information, join a free webinar on Monday nights that Barbara Cohen and her associates deliver. Find her her at her website http://www.shadowtraders.com