|
|
|
|
||
|
||
Why is 2007 setting up to be a big year for Futures Trend Trading Systems? We believe several key indicators are suggesting that there will be a large outflow of money from the stock market. Combined with a generally weak U.S. real estate market, investors will be looking for alternative investments to put their money to work. The likely beneficiaries will be physical commodities such as gold, copper, crude oil and other energy products, grains, meats, as well as foreign currencies and financials which are capable of protecting against inflation.
The smartest and most efficient way to take advantage of coming trends are through the use of futures trading and mechanical futures trend trading systems. By using trend following trading systems, investors can identify and take a position on a developing trend. Trend following systems eliminate the second guessing that typically occurs during a large move. It is widely known that most traders leave far too much profit on the table by exiting large winning trades too early. This is the main difference between amateur and professional traders.
Through our years of experience on the trading floor of the CME, we have consistently observed that non-trend following system traders often buy a market as it breaks out of consolidation, believing the market is going to make a new historic high. But, as soon as that high is broken, there is seemingly a race to get out of the market, as the belief now switches to the market being “over-priced” and not being able to justify the new record prices. Once they are in that mind set, most traders will refuse to buy the supposedly “over-priced” market again. Meanwhile the market will often continue higher for weeks or months, often without a pause. Of course the opposite is true in falling markets.
Good mechanical trend trading systems have no bias towards a price being “too high” or “too low” in comparison to historic prices. Trend following systems force investors to trade like a professional trader every time. They force you to follow the old adage “cut your losses short and let your profits run.”
But choosing a good trend trading systems is only half the battle. The second part of the equation is to execute its signals without question. As we’ve said above, non-system traders can have difficulty staying in a profitable trade. The same can be true for system traders looking at a fairly large, open winning trade. There is a natural human tendency to want to exit the trade and take the profit, even though their trading system may say otherwise. On the flip side, after a system has a couple losing trades in a particular market, many system traders will be tempted to skip the next trade. Almost without fail, that skipped trade will be a good winning trade.
The best method to avoid the above pitfalls is to have an experienced futures system broker administer your trend trading system for you.
Worldwide Futures Systems has the experience to help you execute your systems to their maximum potential. Our founders' experience as a 30+ year member and floor trader on the CME provides you and your investment with that same knowledge and insight we provide to all our clients in our execution of their trend trading systems.
Please call us today at 888-989-WWFS or request more information to learn more about how our trend trading systems below can help you in 2007.
Ready, Set, Go – A long term breakout system run on weekly and monthly data. Rated in Futures Truth Magazine's "Top Ten Systems" and is the Top Rated EuroCurrency system.
CoatTails – A long term, long only, volatility based breakout system.
Golden SX – A medium to long-term system. Continually a top rated system by Futures Magazine and Futures Truth Magazine.
