Futures Trading — The Basics of Futures Markets

Today’s day trading lesson is all about a quickie. A real, real quickie that will allow me to better explain to you all about the basics of futures markets.

This day, the market had been flying high all day long. And then it came to an exhaustion area.

So here is how my quick trade went.

There is a reversal pattern here (on the purple line) with two contracts, and I immediately have my stop line about one tick away. This is right around lunchtime, it is a real big time for a slowdown.

But I did see that this was either going to continue going sideways or it will go down because of the insane run-up. The market usually corrects itself.

I also put my first target at a line where the market had already hit a few times before and a second one further down.

It was really slow and it took a lot of time but I got my first target filled. But I was still in with the other contract. so what I did to ensure I didn’t lose any money, and I always do that. I bring down my stop line to where I entered.

So at this point, if the market comes back here, I don’t lose any more money. There is no risk. Whatever happens, I already have money in the bank from the first contract and can’t lose money from the second one.

So the reversal pattern continues and finally, after 30 minutes or so, the market hits my second target. So I just made another $50. but this is a rare trade for me because I usually never stay more than 10 to 15 minutes per trade.

After that, the market did pretty much nothing. Eventually, it turned and continued back up. So it was a smart decision on my part to get out when I did.

If you have any questions you can always ask them in my Facebook Group and if you want to learn day trading basics — check out Day Trading Courses.

Don`t forget to SIGN UP for my FREE How to Day Trade Mini Course and start your day trading adventure.