What futures trading strategies don’t work?

Over-priced and over-complicated futures trading strategies that involve complicated formulas and multiple lagging indicators are typically not conducive to successful futures trading. Many traders feel that trading should be complicated, and feel the need to use complicated trading methods. They relate complication in other professions to the futures market.

However, in the world of futures, simple is better. Success is the result of managing one’s emotions in an effective manner and thinking objectively on a consistent basis. Many people have an issue controlling their emotions as they interact with the market, and this is the main reason why most traders fail to make money in the futures market. Aspiring traders also fail to keep trading simple and do not recognize that keeping their trading simple will keep them calm and collected while they trade. The brain does not like probabilities as it is, and a complicated trading system will only add more questions for the brain allowing the trader to second guess trading decisions. This indecisiveness often leads to emotional trading and can begin a cascade of trading mistakes leading to a blown out account.

What futures strategies do work?

When discussing futures strategies that work and contribute to an objective mindset; we are talking about strategies that are built around simple price dynamics and chart reading skills. A futures trading strategy that works is built around price action. This is the art and skill of identifying specific price patterns. This is much easier said then done, as I have seen many on the internet claim to use price action without actually knowing what it is.

Price action trading is a simple futures trading strategy that will positively impact your trading mindset and help you to maintain clear objective thinking as you trade. It is important to get quality futures training from someone who has achieved success with trading price action setups. By having a coach you streamline your learning and avoid the haphazard futures trading educational journey that most beginning traders take. Most importantly, beginning traders need to realize that they do not need to use complicated futures trading strategies. In the end this will only lead to ruin. Simple is always better in everything even outside of trading. Psychology makes up at least 90% of trading, so by keeping your trading style simple you are keeping stress on the brain to a minimum which is what your goal should be. This is how professional trader’s trade and it is the quickest way to consistently profitable trading.