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The futures market can confuse many investors, given that they come with so many different terms and strategies at present. Even though it will be possible for you to make substantial profits in future markets, you must comprehend exactly how these markets work and how it will be possible to generate revenues consistently. In this article, we have explained the various strategies that can be used in future marketing.
The best way to learn futures trading is to read the best futures trading books (University books) and practice trading on a demo or small live account. The next step is to watch free YouTube futures trading courses.
Learn futures trading by reading the best futures trading books
First, read an excellent book like “Schwager on Futures: Technical Analysis.” The first goal for any new trader is to learn and practice technical analysis. One of the mistakes new traders make is that they first read brochures, tiny eBooks, and internet sites before reading good trading books. Evan, if you trade forex or futures – the first book you should read is Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance) by John Murphy. Here, you can read about the future and get big pictures of technical analysis. This is a book by the USA University, and all the famous traders from the last 20 years have learned from this book when they were in college. This is the best-selling and the most popular book.
After reading books, start to watch YouTube videos from various traders.
In the next step, one of the best ways to learn futures trading is to watch YouTube videos and collect strategies and tips from futures traders. All those ideas are written on paper. Do not believe everyone. Just keep writing ideas.
Many webinars (1 hour, 2 hours, 3 hours) are listed on the YouTube platform. Search them using the YouTube search option based on duration. You can find many excellent videos and learn interesting facts.
Let us give you a few examples from YouTube where you can learn futures trading:
Watch the free futures trading course videos from Clay:
Futures trading course 2:
Futures trading course 3:
Futures trading course 4:
Do not skip steps in this process. It is essential because if you do not read books, some “trading gurus” can sell you a simple basic strategy with a “90%” winning ratio when, in reality, the strategy has a 50% winning ratio. You can resolve straightforward bad tips and great tips if you are well-read and know basic patterns, terms, and rules from great trading books.
Time to testing
After you collect indicators, expert advisors, trading strategies, and ideas from videos and books, you are ready to open a demo account and test each strategy.
I like to make an expert advisor EA and then test each strategy. The learn, improve, and adapt process is crucial. After you test everything, you are ready for live account trading. In the beginning, trade with the smallest number of lots, risking less than 1% if you can, because you will need time to learn futures trading.
How Is It Possible For You To Be Successful and Learn Futures Trading?
In a futures market, the speculators and hedgers assemble to predict whether the cost of any commodity, specific market index or currency will rise or fall in the upcoming days.
Similar to any other market, there are risks associated with futures trading. However, it will be possible for you to generate short-term and long-term profits because of the substantial amounts of volatility available in these markets.
1. Commodities
Commodities are physical products whose value can be figured out mainly by demand and supply forces. They include energy, grains, and valuable metals. Commodities trade in a centralized market where speculators and investors predict whether the price will rise or fall within a specific period of time.
A straddle is one particular strategy that can be used while trading commodities. It is possible to build a straddle simply by holding the identical number of calls (where you will be speculating that the price is going to increase) as well as puts (where you are going to speculate that prices are going to fall) with the identical expiration date as well as the strike price. Here, the fundamental idea is that you think that the prices will stay volatile in the upcoming days, either moving down or up.
Another strategy is to purchase a call option. Generally speaking, calls can be purchased once you believe the underlying asset’s cost will appreciate in the upcoming days.
On the other hand, you can also buy a put option if you believe that the underlying asset’s cost will fall in the forthcoming days.
2. Currencies
Like commodities, while trading currencies, you speculate that any specific currency’s price will fall or rise soon. Scalping is going to be one strategy that is typically used for trading currencies. The scalpers will try to make short-term profits from any incremental change in a currency’s value. Again and again, performing this implies that your profit will add up over time, thus providing you with significant revenues once you append all the small profits you have generated together.
Generally speaking, your time frame can be as short as 1 minute or even last several days. In fact, a scalping strategy requires stringent discipline to consistently make small, short-term profits while avoiding any significant deficit.
My analysis and opinion are that scalping strategies should be avoided. Long-term trades have a better winning ratio and smaller drawdowns, and new traders are a better option.
Conclusion:
It can be somewhat challenging to get started with futures trading. However, you can learn futures trading by starting paper trading, which can be done by imitating trades on your own (or using a market simulator) until you think you are all set to start trading. It can be rightly asserted that trading in different future markets can be highly lucrative in the long run.
The most important thing is the first step: reading great books and learning basic patterns. After that, it is up to you how you will adapt, learn, and improve each strategy.
He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
