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How To Avoid Bull Traps in Futures Trading

Originally published at: https://optimusfutures.com/tradeblog/archives/how-to-avoid-bull-traps-in-futures-trading/%20

This article on How To Avoid A Bull Trap is the opinion of Optimus Futures. Have you ever bought a futures contract in hopes of a breakout that never materialized? And instead, prices soon start to drop right in front of your face. But it looked so good. Why did it just all of a sudden break down? There are many possible reasons, which we’ll explore later on. But we just described something called a bull trap, which is the complete oppositive of the bear trap. Bull traps happen in bull and bear markets. And understanding the psychology behind them…