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Live Futures Trading vs Pending Order Trading


#1

What are the pros and cons to a trader who is watching the markets live and executing trades vs. a trader that does research and puts in trades for future executions? Is this a trading style preference? Thanks - Ken


#2

Ken,
This is an excellent question (X2). In my opinion, you should not treat these as two contrary futures trading approaches. Those who day trade futures and accumulated lots of screen time may very well prepare their levels for the next day at the end of the session.
Primarily what you are alluding to two different approaches:

  1. Reactionary Futures Traders: These traders wait for a “follow through” after a chart pattern or any method that indicates a confirmation has occurred. (buy high, sell higher or sell low, buy back lower).

  2. Anticipatory Futures Traders: These traders take action before the price confirmation by trying to identify overbought and oversold areas, as an example. (buy low, sell high).

No one can say that one approach is better than the others, and of course, every method requires a serious level of discipline. The discipline part is identifying where to take the gains and where your process is out of synch with the market (recognizing a loss).

By the way, you can always combine methods. For example, your entry is anticipatory, and you could add positions on the reactionary move.
I hope this helps you identify which way you want to go.

Whatever method you choose always be sure to monitor the market when your orders are working, and you do not leave the screen.

Thanks,
Matt Z
Optimus Futures Support
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.


#3

@demo24590 During choppy periods the markets may hit the same levels over and over. 2/3 of the time the markets may not trend and the levels of support and resistance becomes “stronger” as they get hit over and over. Look at the volume that has occurred during price shifts and major support and resistance because this may hold again for the next session if the size (volume) was significant for that price.


#4

Thank you both very much, this is great information.