Calgary AB
Experience: Intermediate
Platform: NinjaTrader
Broker: GFF Brokers
Trading: Equity Index, Energy, Metals, Currency
Posts: 4 since Jul 2018
Thanks Given: 2
Thanks Received: 1
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Hi fellow traders,
How do you all think when trading different futures contracts that move together or move based on something common (like major currency pairs). Examples:
Metals (HG,SI,PL) - Basic observation shows they generally rise and fall together
Currencies with USD as the quote currency (6A, 6C, 6B) - Basic observation shows they generally rise and fall together
If one in the group is falling (say 6C), do you hesitate to go long on another (say 6B) even if price action is showing it is headed up?
To what extent do you allow what the others in the group are doing to affect your decision making, or do you simply not factor that in at all?
I know that everything in a group can and often move independently due to them being two different things with just some things that affect them commonly, but from a psychological standpoint, should one just not allow themselves be affected by this at all and just trust in the market context and price action (as purely technical traders)?
Curious what you all think, and if anyone knows of any good books that speak to this or related topics! (preferably one about futures trading, but forex would be good too since the concept would be the similar). I'm very interested to learn about topics such as these which relate to proper way of thinking as opposed to systems or technical analysis.
Thanks!!
logicalperson
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