The Four Biggest Mistakes in Futures Trading

The Four Biggest Mistakes in Futures Trading

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Fr. 54.90

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Beschreibung

Details

Einband

Taschenbuch

Erscheinungsdatum

01.03.2000

Verlag

John Wiley & Sons Inc

Seitenzahl

112

Maße (L/B/H)

21.4/14/0.9 cm

Beschreibung

Details

Einband

Taschenbuch

Erscheinungsdatum

01.03.2000

Verlag

John Wiley & Sons Inc

Seitenzahl

112

Maße (L/B/H)

21.4/14/0.9 cm

Gewicht

160 g

Auflage

1. Auflage

Sprache

Englisch

ISBN

978-1-883272-08-1

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  • The Four Biggest Mistakes in Futures Trading
  • INTRODUCTION xi

    The Bad News, The Worse News, The Good News and The Better News xi

    Why So Many Fail xii

    What Sets Futures Trading Apart xii

    Attacking From The Bottom Up Versus The Top Down xiv

    One Word of Warning xv

    Topics To Be Covered xv

    MISTAKE #1: LACK OF A TRADING PLAN 1

    What is Mistake #1 1

    Why Do Traders Make Mistake #1 2

    The Recipe For Trading Success (That Nobody Wants To Hear) 5

    How To Avoid Mistake #1 5

    The Litmus Test 6

    How Much Capital Will You Commit

    To Futures Trading 7

    What Market or Markets Will You Trade 9

    What Type of Trading Time Frame Is Best For You 10

    What Type of Trading Method Will You Use 14

    What Criteria Will You Use To Enter a Trade 16

    What Criteria Will You Use To Exit A Trade

    With A Profit 17

    What Criteria Will You Use To Exit A Trade

    With A Loss 18

    A Word Of Advice: Adhere to the Four Cornerstones 19

    Go With The Trend 20

    Cut Your Losses 21

    Let Your Profits Run / Don't Let Big Winners

    Get Away 21

    Summary 22

    MISTAKE #2: USING TOO MUCH LEVERAGE 25

    What is Mistake #2 25

    Understanding Leverage 27

    Why Do Traders Make Mistake #2 30

    How To Avoid Mistake #2 31

    The Role of Mechanical Trading Systems 33

    Determining The Amount of Capital Required 33

    Single Market Factor #1: Optimal f 34

    Calculating Optimal f 36

    Single Market Factor #2: Largest Overnight Gap 36

    Single Market Factor #3: Maximum Drawdown 40

    One Caveat to Analyzing Trading System Results 41

    Arriving at a Suggested Dollar Value Per Contract 42

    Arriving at an "Aggressive" Suggested Account Size 44

    Arriving at a "Conservative" Suggested Account Size 45

    Arriving at an "Optimum" Suggested Account Size for Your Portfolio 46

    Digging a Little Deeper 47

    Summary 48

    MISTAKE #3: FAILURE TO CONTROL RISK 51

    What is Mistake #3 51

    Why Do Traders Make Mistake #3 52

    How To Avoid Mistake #3 54

    Risk Control Method #1: Diversification

    Among Different Markets 56

    Risk Control Method #2: Diversification Among

    Trading Time Frames and Methods 59

    Risk Control Method #3: Proper Account Sizing 62

    Risk Control Method #4: Margin-to-Equity Ratio 63

    Risk Control Method #5: Stop-Loss Orders 65

    Placing a Stop-Loss Order In the Market Place 66

    Using Mental Stops 68

    Not Using Stop-Loss Orders At All 70

    The One Important Benefit of Stop-Loss Orders 70

    Summary 71

    MISTAKE #4: LACK OF DISCIPLINE 73

    What is Mistake #4 73

    Why Do Traders Make Mistake #4 77

    How To Avoid Mistake #4 78

    Overcoming The IQ Obstacle 79

    A Word of Advice: Don't Think, React 82

    Avoid Simple Traps 83

    The Cure for "Woulda, Shoulda, Coulda" 85

    System Development versus System "Tinkering" 87

    Asking The Right Question 90

    Summary 92

    THE FOUR BIGGEST MISTAKES IN FUTURES TRADING CONCLUSION 95

    APPENDIX A: Mathematical Formula for Standard Deviation 99

    Standard Deviations 99