Lets take a look at another chart - the answer is always in the chart.

Here's the setup for a failed trade in Lean Hogs.
Notice, this trade started on February 23rd, 2003 and ended March 26th, 2003:

• Notice that we received our buy signal on February 23rd, so we bought one contract and went long, however the market never went up like we anticipated and we received our exit signal twenty-four days later, and took a loss on the trade of about $180.00. Ouch!

  • During our educational CD-ROM seminar, we'll show you several different strategies on how to minimize even these small losses with the use of what we call "Stop-Loss Orders," which do exactly what they sounds like. They help us "Stop Losses!!!"
     

• You see, the name of the game is to keep your losses small, and let your profits run. That's exactly what our unique new indicators are designed to do. Your profits will eventually far outweigh your losses. The key is being able to stay in the markets, taking only very small losses, long enough to catch a rising star. Catch one or two of those, which builds up your buffer, and you're set for life!
   

• This trade was done in Lean Hogs, to trade Lean hogs you need to maintain
  approximately $1,080.00 in your account to hold one contract.

  • What happens if your account drops below $1,080.00 you might ask?  Well, your broker will call you on the telephone and say "John, (assuming your name is John of course.) your account needs to stay above $1,080.00 to stay in this trade, you've lost $180.00 today, bringing your account balance down to $900.00.  John, you have a choice, you can either send me $180.00 to keep the trade alive, or we can close out this trade and leave your account balance at $900.00, which would you prefer?"
    
    (This is called a "Margin Call." The amount of money you must maintain in your account is called "Margin.")
     
    • Tip: as a new trader, never fund a margin call.  If you get a margin call, simply have your broker exit the trade. Step back, relax, take a couple of days off and reevaluate your trading plan, then start again with a fresh new set of charts and indicators.  There is always another opportunity waiting to be taken advantage of on a different chart, in a fresh new market.
       
    • OK, enough sideline education, let's get back to trading. (That's just some of the kind of stuff we'll teach you in the educational CD's; included with our training kit.)
       

Excited about learning how to trade the futures market? Go ahead and download or request a FREE Trial of Track 'n Trade Pro Charting Software and get started today!