Day Trading Futures Strategies For Seniors
Day trading futures strategies for seniors is a topic of significant interest to senior citizens seeking the best ways to trade futures. For older people in particular, day trading provides an opportunity to make money without the need of a job or reporting to a workplace. That’s just one reason day trading is attractive to seniors, who are disadvantaged in the workplace. Many seniors trade the emini futures market. Since trading carries financial risk, trading schools that teach futures trading strategies are highly recommended for seniors who want to trade.
In general, strategies pertaining to day trading futures should not be complicated. For seniors especially, trading strategies should be simple to learn, but schools that teach day trading need to educate both young and old alike. They must therefore include a wide range of topics relevant to day trading. Among these are lessons covering strategies for trading. However, not all day trading strategies are suitable for seniors.
There isn’t a “best day trading strategy” that will suit everyone but for older people in particular, an aggressive trading strategy is inadvisable. Everyone is different of course, with some traders being more aggressive than others. However, many seniors are living on a fixed income and for that reason, it is recommended they adopt a low-risk day trading strategy that focuses on the preservation of capital. Consequently, a good day trading futures strategy for seniors should give first consideration to loss mitigation, with profit potential being second.
Day Trading Futures Strategies For Seniors Should Be Risk-Averse And Prioritize Preservation Of Capital.
Strategies vs Rules For Seniors Who Day Trade Futures
Experienced day traders always utilize a set of rules to guide them during the trading day. For example, using the “1% at-risk” rule, a trader will exit an unprofitable trade if the loss exceeds 1%. A day trader utilizing that rule will apply it to every trade, regardless if their trading style is aggressive or conservative. On the other hand, a day trading strategy, as opposed to a rule, relates to the nature of trades in terms of aggressiveness. An aggressive strategy will generally give rise to a high number of trades and acceptance of higher levels of risk in pursuit of higher profit.
All day traders should have rules to trade by (I provide many in my emini futures course, “Trading Mastery For Financial Freedom“, but since many seniors simply want to make some extra money to supplement their retirement income, they have no need to risk their existing capital. That’s why day trading futures strategies for seniors should encourage risk reduction.
Examples of Low-Risk Day Trading Futures Strategies For Seniors
Low Risk Entries
Trade entries that are low-risk must be based on a market assessment that supports the trade. An example would be where a prior market top or bottom has been established. Therefore a low-risk strategy would be to enter a trade near the point of support or resistance. The odds favor the support or resistance levels, with a resulting profit. If price violates support/resistance, the trade is exited with little loss.
Avoid Market Volatility
Day trading futures strategies for seniors will dictate that trading be avoided during periods of market volatility. At times when the futures market is making wide swings in price, a low-risk strategy will prevent a senior from trading, and therefore avoid the possibility of incurring a large loss in a short period of time. Of course, this strategy will preclude earning a profit, but the overall consideration is the preservation of capital.
Avoid Overtrading
Another low-risk day trading futures strategy for seniors will have the effect of eliminating overtrading. Overtrading is a common fault of many traders in pursuit of profit (or attempt to recoup a loss). A low-risk day trading futures strategy will avoid overtrading. Regardless of the day’s trading being profitable or not, seniors should not trade unless a compelling reason presents itself for a low-risk entry.
Strategies For Seniors
Who Day Trade
Having the ability to sell short is a benefit of eminis over stocks and also benefits seniors as a strategy for day trading futures. Day traders tend to think of profit being a result of “buy low, sell high”, but selling short allows day traders to “sell high, buy low”. It is a difference without distinction but for inexperienced traders especially and many seniors, profiting from a falling market is a strange concept. During periods of declining prices, the risks increase that long trades will be profitable.
Therefore, short selling is a day trading futures strategy for seniors that offers lower risk during times when market prices are in decline.
Day Trading Futures Strategies
Designed For Seniors
An emini futures trader can evaluate the market in up as well as down days, and trade long or short multiple times a day – or week – and not have to worry about day trading restrictions applicable to stock traders or the ability to take a short position in the market.
Low-Risk Day Trading Futures Strategies
Give Seniors An Important Edge
If given the choice, anyone would rather make big profits in a day or two rather than a year or two. Seniors have the hindsight to realize that day trading isn’t as easy as it looks. Unfortunately, a high number of day traders ultimately end up losing money. Nevertheless, seniors who enroll in a trading course will have the advantage of learning about recommended day trading strategies for seniors and will be better prepared to be consistent, profitable traders.
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