Analysing stock index movements and trading the market has captured the attention of thousands
of people who have started trading, either part time or full time,
over the last couple of years. But how do you trade these markets profitably?
It seems that many traders are still trying to
work this out...and there are as many 'systems' for analysing stock index
movements as there are traders
When the advent of the S&P 500 index by the Chicago Mercantile Exchange, I needed to find a way to
analyze the movements of this index and then trade the entry and exit signals my system gave me.
The good news is that I perfected a great methodology for analysing stock
index movements which has given me the freedom I to not only trade the S&P 500 but also the NASDAQ 100 which was released years later, followed by the S&P mid-cap 400 as well as the Russell 2000 which is made up of 2000 small capitalization stocks.
My system also works on Stocks, currencies and other markets just as well
as it does on indexes.
When I use this system of market analysis, I always look for high probability set-ups that
will give me a good entry or exit point for my trades.
I know that I can buy the market or I
can go short with great confidence, and as long as the market
does what I expect it to do I make money as a trader. If it doesn't I'm safely
taken out by my stop loss order.
So, why do people get
it wrong when they analyze stock index movements?
The answer is lack of knowledge and lack of discipline. If a trader can
find a futures trading coach to teach him how to trade, that trader
will become the best trader he could be, however many people try to go it alone,
often with catastrophic results...
A trader has to learn how to interpret and analyze stock index movements the proper way or he
can go through a fortune learning how to trade - many people never recover from
this drawn-out 'learning experience'.
To learn more about analysing stock index movements and what it takes to
become a very good trader , grab a subscription to our brand new 5 day Futures Trading
You'll learn the 5 key ingredients to successful trading and how to apply
them to your preferred futures market no matter what your current level of
It's easy to subscribe. Just put your First Name and Primary Email
Address into the form below and click on the Free Instant Access button.
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Trading Made Easy LLC
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF THE HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.