Saturday, September 8, 2007

Futures Trading Systems - How to Build Huge Long Term Gains

Futures trading systems allow anyone to build long-term capital gains quickly, and without incurring high asset manager fees. Systems and can yield annual profits of 50% to 100% - sometimes even more.

You should consider using a futures trading system for the following reasons.

1. Diversification a number of asset classes are covered that are uncorrelated to the stock markets - and they include, currencies, interest rates, stock indices, metals, energies, grains and meats, and food and fibre.

2. Systems generate profits in any market condition you can make money in both rising, and falling markets - meaning there are constant opportunities for profit.

3. The global economy is expanding fast - and countries such as India and China, are leading a worldwide global economic expansion. The perfect example of this boom is the huge rise in the price of crude oil.

4. Futures trading systems have a technical basis they follow market momentum. Systems dont care why prices move - they simply follow market trends, to stack up huge capital gains.

5.Futures trading systems are quick and easy to use - you can manage your own investment in less than 30 minutes a day, and still make huge gains - without paying large fees to fund managers.

The Popularity of Futures Trading Systems

The popularity in futures trading systems is fuelled by the growth of the Internet - and the fall in the price of high-powered computers and software. Now, anyone with a basic computer and an Internet connection can trade for big profits.

Build Your Own System, or Buy One?

Its down to the individual - but it is easy to build your own system.

If you want the perfect futures trading system, then read articles on breakout systems. Breakout systems are simple to understand and use - and the rules are programmable into many software packages, such as Supercharts and Tradestation.

If you want to buy a futures trading package there are many good ones around, just use this checklist:

1. Make sure you understand the logic the logic needs to be easy to understand - so you have the confidence to follow it. Avoid the so-called black box systems where the logic not visible to you.

2. Track record Look for some form of real time track record - not just a hypothetical simulation. Lets face it - we can all make money - if we know the price history!

3. Check the vendor and his background carefully - so you are comfortable with the support, and backup you may need.

4. Make sure you check the drawdowns - check the worst time to invest and the fall from this level also, how long does it take to make a new high. This of course could happen again - and you will need to be prepared for short-term losses - and this will give you good guide.

5. Look for a long-term trend following system - as long-term trends make the biggest profits. Avoid day trading systems, as these tend to be less effective.

Buying a futures trading system is really just down to common sense. Find out as much as you can about the system, and logic - until you are comfortable about making a purchase.

Get Ready for Big Profits

We are seeing huge moves in commodity and future contracts - and these moves can yield big profits.

The advantage of a technically based futures trading system, is that you dont need to decide when to enter - the system will simply lock in, and follow the big trends as they emerge.

A Disciplined Plan for Profits

The advantage of using a futures trading system, is that you are not subject to your emotions - which is the main reason futures traders tend to lose money.

Crude oil has made many people look at trading the markets - but there are always great trends around. For example, currencies are always trending - as are many of the other groups.

In conclusion, futures trading systems are quick and easy to use, save you money on advisor fees, add diversification to your portfolio, and give you the potential for big capital gains.

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