How to make the Futures Trading a Cake walk?

One has the options of trading in the futures segment as well as “options” segment apart from the Cash segment. Different people have different preferences for trading segment but there are many people who have futures trading as their favorite. “Futures” Trading is easy to learn and one can make good profits by trading in the Futures segment. If one is new to the Futures market, he can take help of the expert analysts, who provide Stock Future Tips to trade effectively in the Futures market.

One has to acquire sufficient knowledge about the Futures market, before starting trade in Futures segment. Also one should have a good strategy to make profits in the futures segment. There are many strategies available on the internet, from which traders can learn these strategies and start earning good profits.

In this article we are going to discuss about a strategy which utilize simple moving averages as well as exponential moving averages to find the current trend. The current trend is identified using this strategy and buy order is placed in case of uptrend. Similarly a sell order is placed in case of a down trend.

In this particular strategy, the 5 EMA and 10 EMA are used. Along with these EMAs, a simple moving average of 50 SMA is also used. The 50 SMA is used to determine the overall trend. The overall trend can be uptrend or downtrend. In case the overall trend as indicated by the 50 SMA is uptrend, only buy positions will be opened. Similarly if the overall trend is downtrend, only sell orders will be placed.

The buy and sell orders will be placed, based on the crossovers of 2 EMAs. When the 5 EMA and 10 EMA cross each other the trend reversal will be evident and buy as well as sell calls can be placed.

A good benefit can be attained by utilizing this particular strategy. There are chances of false signals but the loss in the case of these false signals will be small. Money management is the key to success in this strategy. There can be a large number of false signals, especially in the case of sideways market. It is said that in general, 70 percent of time, the market is non-trending. The market is in trend only for remaining 30 % of time. Hence it is critical to tackle these false signals. 

It is a general advice for all traders that stop loss should always be used while trading. The principles of risk management and wealth management are very important for futures trading. To trade effectively in the futures market, one can act on the Stock Future Tips from expert analysts.