How to Day Trade Futures

Day Trading For Dummies - Market Environment - Learning To Adjust
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Hey Future Traders,

I decided to create this quick day trading for dummies lesson. I've actually received great feedback about this series of videos that I create for day trading noobs. Hey let's face it we're all there at one time. I truly wish I had found someone that was able to teach me these things when I first started.

But enough about that, here I am, ready to show you all some of these tiny things that might not matter to most big bad traders but certainly matter to the beginners. So, the topic we are covering today is market environment. This topic often not that explored and that's because of the fact that the day trading industry as a whole sells you on the principle that indicators are what helps you trade well.

Keep in mind that this is the furthest thing from the truth. So, don't fall victim to that huge bunch of bulls#$%. If you are looking to becoming a pro and exiting the day trading for dummies status then the first thing you'll need to learn is about the market environment.

You have to be able to tell when exactly we are running well and when we aren't. It all comes down to basics to be quite honest with you.

So, let's begin by looking at a perfect trend. After all its best as a beginner to start as a trend trader. Predicting market tops and bottoms takes a great amount of skill and a heck of a lot of guts. I personally don't even bother with it when I can do so well trading with the trend.

A perfect trend is continuously making higher highs or lower lows until it ends. If you look at the chart above you'll see exactly what I mean by perfect trend. And as you'll notice in the above example a market that is moving well will be making these trends up and down.

Now take for example a market that isn't making these higher highs and lower lows. It's not a textbook trending market. If there are areas of support and resistance above and below then chances are we are actually in a range. And that's exactly what happened in the market we traded today.

The extremely good traders are able to see this as it's happening and then adjust to the market and take profit at the strong areas as opposed to their typical targets. As you progress in learning this you'll also be able to identify this and change targets.

Let me finish off with a really quick example of building skills. Remember when you first started driving and you really could only drive on the back roads. As you've gotten better and better you've never really realized that you used to only be able to drive on desolate roads and now you're driving on the freeway. it's no different then learning to trade. You adjusted to driving on faster roads and once you get off the highway you go back to trading on small roads. Think of the adjustments you make when you're on just the standard road versus the freeway.

The second skill that you need to be able to build up is becoming a consistent trader. Consistency takes time to develop. One of the main ways that you build it is by practicing on a sim account like the one I'm trading in the video above. Keep watching my videos and I'll soon show the actual profits that I have on the final week of the challenge.

I'll see you next time in the day trading for dummies series.