This is a provoking start, but it has an avoidable reason. Most beginners in these markets, and some are lifelong beginners, don’t have a clue about money management. Derivative markets offer a high leverage often coupled with tight spreads. Essentially everything is in place to become rich. You just need to discipline yourself to the right bet size and then there is of course a system necessary.
Generally there are two kinds of trading, cyclical and anticyclical, and both have their merits. But, for day trading one sound strategy is to combine both.
Often there are very short lived oscillations surrounding a longer intraday movement with noise . Going against the very short term oscillation gives you a good entry price, but you are still on the right side for the longer move. Additionally, this method allows for making the spread, at least on entering the trade and while exiting if it goes right and stopping is not necessary.
This sounds good and it is useful in noisy future markets where every move gets exaggerated for minutes only to be reversed soon after. Especially stock indices have often the right “mix” of a noise-component, a high frequency oscillation, laid on top of a larger directional movement. It is also interesting for Forex, albeit the price driving mechanisms are somewhat different there.
So far, so good, but for now this is only easygoing theory. To make it real, more is necessary. Here is someone with a reasonable system, who is also offering to give you realtime advice and mentoring in a live trading room.
Seeing what other futures traders are doing and asking questions may exactly be the additional help that can make the difference.
