How to Day Trade Futures Using proven Methods
By Mohan Wolfe, DayTradersAction.com
What are the key ingredients to day trading success? What are the most vital pieces of the trading puzzle to discover in order to carve out a serious career as a futures day trader? With all the risk and uncertainty out there is it really possible to make a decent living in the trading business?
Greetings traders. I hope this meets you well in your on going education in the futures trading industry. My name is Mohan and I have been day trading the futures markets for just over 30 years now. I will do my best in this article to answer the above questions so that you will feel comfortable exploring the high speed, high risk and potential high profit world of futures trading.
The main question many traders will ask is: “What are the best day trading markets for futures?”
Well, the truth is there really is not a “ best” market necessarily because with solid knowledge of a specific futures contract you can many ANY market really lucrative. Deploying very specific knowledge and then “time in front of the screen” following that market to develop the skills necessary to trade successfully is the key!
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My favorite markets for consistency of flow, steady continuous volume, and regular daily intraday swing moves are the Crude Oil contract (CL) and the Mini Nasdaq (NQ).
I live in the USA and the active time periods for these contracts suits my schedule well. The best trading times I have found for these contracts are the really active periods between 9:00 am EST and 12:00 am EST.
Using the very specific tools that I will show you today in this article I find that I can carve out a regular almost daily paycheck from these markets. I prove what I am saying here in the live market practically every day in my “Day Traders Action Live Trading room”. In fact just recently we had an astounding 83 winning trading sessions in a row in our live room! I have never heard of any other trader, CTA or live trading room in my 30 years in the industry accomplish that with their specific methods. And rest assured if they had done that they would be announcing it and promoting that success like I have to let traders know that it is possible.
To give futures traders encouragement, support, training, instruction, precision indicators, and indeed daily live successful trading signals has been my goal in the industry for 18 years now. I love the work I do working with traders and plan on doing this for a long time into the future. If you get a chance stop in my trading room and take advantage of what we offer. In fact, we are the lowest cost trading room in the industry with the strongest trade results that I have ever seen in the trading room world.
Please don’t get me wrong. I don’t say that to brag or be conceited but to encourage traders that it is possible to use the markets to carve out a regular daily paycheck on most trading days. Futures trading is a very tough business. Always remember that futures trading is very risky and you should only be using risk capital which is defined as money you can afford to lose which by losing will not affect your lifestyle.
I love telling our traders who check out our services this important risk disclosure because this futures business will draw in a lot of people who should NOT be traders. Out of the thousands of traders I have trained over the years ( well over 50,000) a good portion of that group should not be trading the futures. Plain and simple many traders do not have enough money to trade futures and they do not want to develop the military like discipline it takes to become a serious futures trader.
The 3 Key Elements to Successful Futures Day Trading
Before I get started showing you some charts along with some precision indicators I have developed let me discuss the key ingredients to futures trading.
Those 3 key elements of day trading are:
- You must have a solid working knowledge of your trading platform and how to execute trades rapidly. You should also fully understand how to change orders, cancel/replace orders, flatten out your positions and apply automated brackets to be sure you always have a stop on your position with your broker. Be sure to have your phone on speed dial to your broker in case all this sacred internet technology stops working for some reason in the middle of one of your trades.
- You will need to trade with a proven, tested, highly accurate and well researched day trading system that has a long time track record of success. You can find one of these rare gems (like my Boomerang Day Trader system) or take the harder route of “trial and error” to develop your own. If you choose this route just be prepared for many years of work, frustration and losses in trying to develop such a system. Oddly, although this second key ingredient is so important, I have found over the last three decades of trading and assisting other traders that this vital element is so often overlooked.
- You will need above all a crystal clear working knowledge of how to develop and maintain a “Traders Mindset”. This means knowing and understanding fully how your brain will react to the trading business and its ups and downs during your career of this high risk business. What I find truly astonishing in my many years of working with traders is the often blatant disregard for this most vital third element of successful trading.
It’s almost as if traders would rather pretend that the “Traders Mindset” doesn’t exist at all and instead would rather just say to me “just show me how to be a winning trader Mohan without the psycho mumbo jumbo”. Some of you may be thinking this right now and indeed you are the ones who need it most.
Often I have seen that it will take a trader two or three blown out trading accounts to finally start waking up and realizing how important the Traders Mindset is in the entire process. The false assumption that a beginning or intermediate trader doesn’t need to train this aspect of their trading life can be the cause of devastating financial destruction.
Your brain does not like what trading does to it
The brain does not like what trading does to it. It does not like to experience the fear of unknown and the nervousness of perceived unlimited risk that can occur while trading and putting trades on.
When confronted with these things the normal reaction of the brain is a “fight or flight” response. This is what practically all new traders that I have worked with experience. The reaction in the live markets is seen by jumping out of winning trades too quickly or worst of all holding losing trades too long hoping for a reversal of the loss.
Multiply this by hundreds of trades with losses and you have a formula for trading psychosis if not treated quickly and professionally could result in devastating losses. All professional athletes have personal trainers that coach them in their goals, focus and on how to improve their game. Usually this is trained in incremental, consistent improvements.Over time such incremental gains can often become substantial victories.
This is exactly the same in trading but we have to get over this idea that “I don’t need mental training to trade the markets….just a good system. Just show me that”. I cannot tell you how many times I have heard that from traders over the years.
Well, in truth if you have been in the trading industry a while odds are you are getting bombarded with trading ideas, charts, indicators, systems and much more. And along with that many advertisements with false, unproven claims of how to become a successful trader sent by so called trading advisors who don’t even trade themselves.
Trying to assemble all of these unproven ideas into a “winning system” is a waste of time and going to cost you years of trial and error. If I can speed that process up for you it could be worth potentially hundreds of thousands of dollars.
Today I am going to show you in simple terms what really works in futures day trading”.
First of all I would like to establish a bit of credibility which in this futures industry is extremely important in deciding whose ideas or method you are going to use.
Below is a picture of me giving a live two day seminar to over 320 traders who flew in from around the globe to learn my trading methods. In attendance were over a dozen floor traders from Chicago and about 20 futures brokers. The rest were traders ranging from large contract size pros to intermediate level traders along with new traders who were just starting out in the business. They had all heard of my successful trading services and went to great expense and effort to attend the webinars I did.
During the 2 day seminar we also had an excellent presentation from the brilliant Mark Douglas who is one of the original and best “Traders Mindset” coaching experts. You can learn more about his important books such as “The Disciplined Trader” and “Trading in the Zone” by doing a search on Amazon.com. I suggest to traders that these two books should be required reading in order to advance your career and be successful.
So I hope that based on the above information I have established some credibility in your mind so that when I show you the following indicators and charts you will trust me enough to watch the short video that I have presented here on this important trading approach I use.
“Volume and Price are the two real elements of day trading futures”
It is well known by experienced traders that the Volume will generally lead the price movement of the market you are trading. So, it only stands to reason that IF you could detect a shift in volume with extreme accuracy you could potentially detect when the price is going to change in advance of the move.
Please read carefully again what I just said above. It is one of the most important aspects of understanding how to trade on the right side of the market.
What we are really attempting to do in futures day trading is to “read into the future” of the price over a very short period of time. In other words in a humorous sense we are trying to become a Junior Nostradamis literally every day and indeed moment to moment while we are trading.
To accomplish this I have developed two very specific indicators I call VOLMO (Volume Momentum) and PRIMO (Price Momentum). These are very inexpensive indicators in line with my long time policy of NOT gouging traders for any of the services or indicators that I offer. We also have our long time (10 years on the market) highly successful proven software which is used by thousands of traders known as Boomerang Day Trader.
You can acquire the individual VOLMO and PRIMO indicators and/or Boomerang separately or together. Either way you will see greatly increased clarity in your futures day trading.
Here is a chart showing VOLMO -Volume Moving average- on a plain chart. After you study this chart please watch the short video here I have presented which shows VOLMO and PRIMO on a Boomerang Day Trader chart.
I have written notes on this chart showing where the Volume Momentum line shifts color (bias) and how that is followed by a reversal of price. We then see a histogram color change showing additional momentum strength in the subsequent price movement in that direction.
Now please take a little bit of time and watch this brief video below which shows how to correlate the Volume momentum shift with the Price momentum shift on my Boomerang Day Trader chart. Note how Boomerang Day Trader gives you exact, crystal clear entries on the trades.
Watch This Short Video on Volume and Price Momentum
THE SPECIAL OFFER
- For more information on the VOLMO and PRIMO indicators which are only $195, click here.
- Purchase Boomerang Day Trader here and make up to 90% winning trade signals guaranteed. Boomerang Day Trader is only $1195 and we guarantee up to 90% winning trade signals coming from the software following our exact, proven method.
- Boomerang comes with our regular bi weekly training classes so you are always kept up to date on the markets and how to trade them with Boomerang.
- Best of all, be sure to join our “Day Traders Action Live Trading Room” for just $39 to get started. Earn as you Learn with us in the room at an extremely low monthly subscription price. We normally make 2-5 times the monthly subscription cost EVERY DAY in the room.
Please feel free to email me with any questions you may have on futures trading at: Mohan@daytradersaction.comJoin My Live Trading Room Here!