One of the attractive feature in futures is that you are allow to sell now and then buy later. This will only work with profit if you able the identify the market going down soon, so you will choose to sell now, after that buy back in much more lower price to earn the difference. It seem like very easy, sell at high then only buy at low, however, who can predict what going to happen next day? Unfortunately most of the retailers are doing at the opposite way, so once they sell, the market seem like going up for no reason.
Lots of clients asking me this question "How come every time i sell then the market going up, and when i buy then the market start going down?" I think lot of futures traders looking answer for this question, and i hope my answer help them to solve the mystery. How to define as low and how to define as high? When the market is droping, i would not say that it is the low now. Nevertheless, i will say the market is at the low when the market is start rebounding for 5-10 points then i only will say that is the low. The same goes to define the high, which I only will say it is the high when the market is start retracing for 5-10 points from the high. Put in other words, when the market is droping, i would not aim to short, because when u choose to short, u might short at the low since there is lot of people short at the high price and start waiting the lower point to take profit.
When you start practicing your patience on never short when the market is droping or never long when market is going up, this eventually will reduce the chances of stucking in situation such as buy high sell low. Remember that, we can't never predict the highest and lowest, so always buy when the market is rebounding and short when market is retracing. Try to ignore picking the top and bottom, cause I always feel that long or short at safer level is the only way to ensure you never fall in the trap of buy high sell low.
Lots of clients asking me this question "How come every time i sell then the market going up, and when i buy then the market start going down?" I think lot of futures traders looking answer for this question, and i hope my answer help them to solve the mystery. How to define as low and how to define as high? When the market is droping, i would not say that it is the low now. Nevertheless, i will say the market is at the low when the market is start rebounding for 5-10 points then i only will say that is the low. The same goes to define the high, which I only will say it is the high when the market is start retracing for 5-10 points from the high. Put in other words, when the market is droping, i would not aim to short, because when u choose to short, u might short at the low since there is lot of people short at the high price and start waiting the lower point to take profit.
When you start practicing your patience on never short when the market is droping or never long when market is going up, this eventually will reduce the chances of stucking in situation such as buy high sell low. Remember that, we can't never predict the highest and lowest, so always buy when the market is rebounding and short when market is retracing. Try to ignore picking the top and bottom, cause I always feel that long or short at safer level is the only way to ensure you never fall in the trap of buy high sell low.
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