Trying to Learn Some Systems for Daytrading (Page 3) - Beginners and Introductions | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > Beginners and Introductions

Trying to Learn Some Systems for Daytrading
Started:October 28th, 2014 (06:53 PM) by Noitartst Views / Replies:1,875 / 23
Last Reply:November 17th, 2014 (05:24 AM) Attachments:3

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Trying to Learn Some Systems for Daytrading

Old November 13th, 2014, 08:55 PM   #21 (permalink)
Trading Apprentice
NYC, NY, United States
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: Forex
Posts: 9 since Aug 2014
Thanks: 27 given, 1 received

Hope this helps

Leverage is literally debt. It is the same principle of a credit card. Your bank allows you to withdraw x-times more money than you own. Same way if you have a leveraged account of 50:1 it means that for every one dollar you have in your account, you can use 50 dollars. For example if you have a forex account and you buy one standard lot of eur/usd of $250, you really bought 50 times $250 is $12,500 worth of Euro's.

But beware of leverage. There is a reason for the term leverage is a two edged sword. While you can make more money by using leverage in a winning trade, you can lose more money also in a losing trade. Mykee's explanation is a good explanation of leverage. Read it a few times. Perhaps you could write the equation in an excel sheet a few times until it sinks.

Think of a hedge as a guarantee, an insurance. In the case of the farmer I gave earlier, the price at which he sells the futures is a guaranteed price. Come harvest, that is the price at which he can sell even if the price of corn is trading lower. A stock option == an option to buy or sell the underlying stock at the price the option lists when you bought it. It's a guarantee that you can buy or sell the stock at that price.

Reply With Quote

Old November 14th, 2014, 05:02 PM   #22 (permalink)
Trading Apprentice
Shelton, Washington
Futures Experience: None
Platform: Yet to be determined.
Favorite Futures: Stock, methinks.
Posts: 21 since Oct 2014
Thanks: 0 given, 0 received

Ah, so that's why they call it an option! So, the farmer can sell higher than thecontract price, too, if the market allows?
In effect, it's a floor.

So...a derivative futures contract is valuable, given it is a price guarantee. Valuable to whom, though, outside the farmer? I get how he needs it, but as to the speculator, how does it work? If the market pric goes up, who'll want it, and if the price goes down, who'll want it? Forgive my stupidity, but I'm trudging towards conceptual knowledge.

Huh. As a speculator, I have a futures contract, and the market suddenly rises above its price, and other speculators think it will rise some more, my contract gains market value because it allows access to a commodity at a cheaper-than-market value. Correct?

Okay...that's going long, anticipating the market going up. Do I understand? Going short...seems more comlicated, though the concept is simple enough. You anticipate the market's going to drop, and you make plans betting on that outcome. How, though? It's taking advantage of price movement, only of a negative nature, but that, I don't quite get.

(Incidentally, now have a demo account of Ninjatrader 7 Any good tutorials of how to use it?)

Last edited by Noitartst; November 14th, 2014 at 05:47 PM. Reason: Second thoughts.
Reply With Quote

Old November 15th, 2014, 09:03 AM   #23 (permalink)
Elite Member
Wiltshire, United Kingdom
Futures Experience: Beginner
Platform: NinjaTrader
Broker/Data: Working on a TST combine
Favorite Futures: 6E
matthew28's Avatar
Posts: 178 since Sep 2013
Thanks: 124 given, 196 received

Support videos, manuals and forum here. NinjaTrader: Trading Platform & Brokerage Support Resources

Reply With Quote

Old November 17th, 2014, 05:24 AM   #24 (permalink)
Trading Apprentice
NYC, NY, United States
Futures Experience: Beginner
Platform: NinjaTrader
Favorite Futures: Forex
Posts: 9 since Aug 2014
Thanks: 27 given, 1 received

The farmer cannot sell at any other price than the price at which he sold the contracts.

For the speculator, it means that if he bought contracts and the price went up 2 points, he can sell them again and take a profit. All the speculator does is buy or sell in a direction that he thinks price might go and when it does he makes money. This is what day traders do the whole time. They figure out a price at which they wish to buy and a price at which they wish to sell. A speculator can be compared a store owner who buys and sells inventory. He buys at wholesale prices and sells with a premium. His intention is never to keep the inventory for private use, but to resell it to make a profit.

Going long = Buy low, sell high (if you were right)
Going short = Sell high, buy low

Remember that when you short you borrow contracts from your broker. Google what does short selling mean and read every blog that comes up. Someone in the haystack will definitely give you the most enlightening answer.

I don't understand what you mean by negative nature, but if I anticipate that the price of the e mini s&p is going to drop 6 points and I was right and I took the trade, I know that my balance increases quite positively.

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > Beginners and Introductions > Trying to Learn Some Systems for Daytrading

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
What to do after you realize daytrading is not for you ctmvas Index Futures Trading 11 October 19th, 2014 12:54 PM
OK, you're daytrading. Do you have a dog ? MetalTrade Off-Topic 36 March 10th, 2012 12:03 PM
Daytrading Insomnia Ryanb Off-Topic 12 March 8th, 2011 07:47 AM
Will daytrading keep existing ? MetalTrade Psychology and Money Management 16 June 25th, 2010 07:56 PM
Consistant Daytrading Zach b The Elite Circle 3 May 3rd, 2010 09:22 AM

All times are GMT -4. The time now is 03:41 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-22 in 0.09 seconds with 20 queries on phoenix via your IP