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How to Avoid Bear Traps When Day Trading Futures

Originally published at: https://optimusfutures.com/tradeblog/archives/how-to-avoid-bear-traps/%20

This article on trading bear traps is the opinion of Optimus Futures. There are several strategies that traders can apply to make money trading futures. One of the most common is momentum trading. These strategies rely on following a trend with the expectation it continues. You’ll also hear these called ‘trend following strategies. However, breakout trading also relies on momentum as well. The difficulty with any of these is knowing what’s a real continuation of a trend and what’s not. Quite often, what you think will happen never materializes. That leaves you open to sharp reversals that can quickly put…