EASTERN AVIATION FINANCE: Four Major Profit Models of Futures Trading - Open an Account for Gold Futures

by donghang0728 on 2011-08-04 17:03:34

For domestic futures trading account opening, please choose Dongfang Airlines: http://www.cesfutures.com/index.jsp?yzforex.com

In futures speculative trading, there are many profit-making models for commodity futures accounts, such as day trading, short-term trading, swing trading, medium-term trading, and long-term trading. Which one is good or bad cannot be clearly answered by others, because the same trading model can produce different results for different people at different times. Therefore, traders who want to achieve twice the result with half the effort can only choose after understanding the principles and techniques of various models based on their own situation and market conditions.

Latest hot event: Seed No. 1 FOF Hedge Fund Manager Training Plan

(1) Day Trading Model

There are two types of day trading models.

1. Quick battle and quick decision model. It refers to a trading model where traders hold positions for just a few seconds to several minutes in order to gain a few points or dozens of price differences at a certain period or position. The trading principle of this model is to make profits by quickly entering and exiting when prices move significantly due to certain factors, such as the influence of external markets, breakthroughs or false breakthroughs of support and resistance levels during trading hours, and sudden news.

2. Intraday trend trading model. It refers to a trading model that holds positions for tens of minutes to several hours and closes out positions on the same day in order to capture the day's trend profits. The trading principle of this model is to buy low and sell high or buy high and sell higher to capture price differences when prices move along an obvious trend direction during the day, such as one-sided movements in swings or trends.

Futures Trading Tutorial: A Complete Guide from Opening an Account with Dongfang Futures to Trading

(2) Short-term Trading Model

It refers to a trading model where traders build positions on the same day following the market direction and close positions the next day or within a few days. The trading principle is that the market already has a relatively clear direction, and the development of market trends often goes through a process, i.e., the inertia of the trend. During the holding period, no adjustments are accepted, and positions are closed immediately once the trend energy weakens or disappears.

(3) Swing Trading Model

It refers to a trading model where traders buy at support levels and sell at resistance levels, or sell at resistance levels and close positions at support levels, with a holding period of around 3-10 days. The trading principle is that when the market breaks out of a consolidated dense trading area, it will quickly move to the next dense trading area. For example, oscillatory operations with obvious trend directions or box-shaped operations without direction. The latter is more difficult to grasp than the former. During the holding period, small adjustments of one to three days can be accepted.

(4) Medium to Long-term Trading Model

It refers to a trading model where traders build positions at the start of a trend, add positions when pullbacks end, and close positions at important levels or time cycles, with a holding period of one to three months or even a year. The trading principle is that the market is always cyclical; when one trend ends, it will inevitably lead to the start of another trend. Moreover, market operations are not simply straight-line rises or falls but must develop tortuously to digest adverse factors. Although adjustments are accepted during the holding period, attention should be paid to protecting profits to prevent judgment errors.

The best and most stable platform for futures trading is with Dongfang Futures. Click here to open your futures account immediately.