Profitable Future Trade

Profitable Future TradeBy

www.ProfitableTradingTips.com

http://www.profitabletradingtips.com/

How does one go about setting up a profitable future trade?

http://profitabletradingtips.com/trading-investing/profitable-future-trade




What factors go into the timing of a profitable future trade?





Both fundamental and technical analysis are important when trading futures on stocks,

commodities, or currencies.


http://profitabletradingtips.com/trading-investing/technical-analysis




Traders learn the fundamentals that ultimately drive equity prices.





This gives them a clear idea of the range within which it ought to

trade.





It also gives the trader a good idea of just how long a trend will last

and, oftentimes, how abrupt a correction might be.





A profitable future trade requires an intelligent set up, careful

attention to market pricing patterns, skillful execution, and close follow up in order to gain

maximum profits from the trade.





Analysis of Fundamentals





The eventual price of a stock is determined by the return it gives

investors and the degree of security it offers.





However, along the way to a given price the market speculates on

fundamentals such as cash flow, rate of growth, and issues such as

takeover bids.





Commodities such as corn, wheat, and soybeans are priced according

to supply and demand.





When there is a drought in the American Great Plains or torrential

rains in Brazil, there is the likelihood of a reduced harvest and

higher prices.





Serious commodity futures traders keep track of where the rain is or

isn’t, market demand, and government support payments, all

of which drive prices of agricultural commodities.





Commodities such as gold are hedges against inflation.





As the American dollar falls in value the price of gold rises.





Gold bugs hoard gold.





Gold futures traders watch market fundamentals in search of a

profitable future trade.





FollowingTechnical

Signalshttp://

profitabletradingtips.com/trading-investing/profitable-future-trade




There are a number of profitable day trading strategies

that can result in a profitable futures trade.


http://profitabletradingtips.com/trading-investing/profitable-day-trading-strategies




Based on the skill set that the trader has and his or her

experience he or she can follow technical trading signals like

Japanese candlesticks in order to assess market sentiment and

forecast market reversals.





These signals work for trading futures on stocks, currencies, and

commodities.





Technical signals can result in a profitable future trade because

market price patterns repeat themselves.





This was discovered by rice traders in ancient Japan.





When price patterns seem confusing the Candlestick trader or other technical trader often sees a

pattern amid the market static.





Signals such as the Doji, Shooting Star, and Hammer signal can

predict market turnarounds when fundamentals are confusing.





These and similar signals can often lead to a very profitable future

trade simply based upon an assessment of market sentiment.





Picking Which Futures to Trade





Futures traders fall into two categories.





Companies that mine gold, buy things from foreign companies, or

seek to hedge risk in their business typically limit their options trading

to the field in which they do business.





However, speculators can choose which stock, currency, or

commodity is most volatile and seek a profitable future trade.





It is still important to know the fundamentals and to do technical

analysis but the opportunity for profit goes up with increased

volatility.





Profitable Future Trade

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