When Not To Trade: An Example

“There is time to go long, time to go short and time to go fishing.” – Jesse Livermore.

Knowing when NOT TO TRADE is IMPORTANT.

VERY Important.

Look what happened this AM!

40 points in under 60 seconds. Can you afford to be wrong? (*One ES contract would hurt.. 40 Points X $50/Point = $2000 in 60 seconds. *)

What if you were on the wrong side?

OUCH… a SINGLE candle CAN blow up an account, thus setting off a chain of emotional events and horrible trade entries promising “if I can only get back to even”.

Just don’t trade that!

rules for futures traders emini

How do you AVOID that?

Know WHEN news is being released.

Read: Pre-Market Checklist Article.

You BETTER know to be FLAT (no position) BEFORE that news release!!!

Times To Avoid Trading

Forexfactory & Financial Juice:

Yellow and Red folder events! FOMC, Non-Farm Payroll, CPI, Fed Chair Speaking, …

MARK these events on your chart. I will draw a VERTICAL LINE at the time and add a NOTE. A big thick RED vertical line.

Rules for Traders Futures

To be honest, it is probably best to NOT TRADE AT ALL the ENTIRE DAY.

Just take the day off.

Cash is a perfectly FINE position.

No need to trade on days like Non-Farm Payroll (NFP) or FOMC (Federal Reserve Meetings) days.

In fact, some trades will NOT the DAY OF… NOR… the DAY BEFORE these big events. Price hardly even moves the day BEFORE because everyone is waiting on the NUMBER to be released. Is the Fed raising or lowing interest rates? How is inflation? What is the unemployment number?

Even if YOU KNOW, what the number was you have NO CLUE how the market will react.

Just stay out.

Don’t Trade.

Example Video

Commodity Futures Trading Commission. Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. Testimonials Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.