Winning in the Futures Market: A Comprehensive Guide by George Angell
Winning In The Futures Markets By George Angell 24 bauen liebesspiel ir
If you are interested in learning how to trade futures and make money from the fluctuations of prices in various markets, you might want to read this book by George Angell, a successful trader and author who has been in the business for over 30 years. In this article, we will give you an overview of what futures markets are, who George Angell is, what his book is about, and how you can apply his strategies and methods to win in the futures markets.
Winning In The Futures Markets By George Angell 24 bauen liebesspiel ir
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What are futures markets and why are they important?
Futures markets are places where people buy and sell contracts that specify the price, quantity, quality, and delivery date of a certain commodity or financial instrument in the future. For example, a farmer can sell a contract to deliver 100 bushels of wheat at $5 per bushel in six months, while a baker can buy that contract to lock in the price of wheat for his business. By doing so, both parties can hedge against the risk of price changes in the spot market, where the commodity or instrument is traded for immediate delivery.
Trading futures can also offer other benefits, such as leverage, liquidity, diversification, and arbitrage opportunities. Leverage means that traders can control a large amount of value with a small amount of margin or deposit. Liquidity means that traders can easily enter and exit positions without affecting the market price too much. Diversification means that traders can access a wide range of markets and products with different characteristics and correlations. Arbitrage means that traders can exploit price differences between different markets or products to make risk-free profits.
However, trading futures also involves significant risks, such as market risk, credit risk, operational risk, and legal risk. Market risk means that traders can lose money if the price moves against their expectations. Credit risk means that traders can lose money if the counterparty fails to fulfill their obligations. Operational risk means that traders can lose money due to errors, frauds, or technical failures. Legal risk means that traders can lose money due to changes in laws, regulations, or contracts.
There are many types of futures markets and products that traders can choose from, depending on their preferences and objectives. Some of the most popular ones are:
Type
Product
Description
Commodity
Agricultural
Futures contracts based on crops, livestock, or other agricultural products.
Commodity
Energy
Futures contracts based on oil, gas, coal, electricity, or other energy sources.
Commodity
Metal
Futures contracts based on gold, silver, copper, or other metals.
Financial
Stock index
Futures contracts based on the value of a basket of stocks, such as the S&P 500, the Dow Jones, or the Nasdaq.
Financial
Interest rate
Futures contracts based on the level or change of interest rates, such as the Treasury bonds, the Eurodollar, or the Fed funds.
Financial
Currency
Futures contracts based on the exchange rate of one currency against another, such as the US dollar, the euro, or the yen.
Who is George Angell and what is his book about?
George Angell is a professional trader, educator, and author who has been trading futures since 1974. He has written several books on trading, such as Winning in the Futures Market, Winning in the Options Market, How to Triple Your Money Every Year with Stock Index Futures, and Sniper Trading. He has also developed his own trading software and indicators, such as the LSS Day Trading system and the Angell Trend Index.
In his book Winning in the Futures Market, which was first published in 1987 and revised in 1990, Angell covers all aspects of the futures markets from "What you need to know" to "What you must do to win". He reviews the basic fundamentals, definitions, and trading rules and strategies. He also includes chapters on hedging, chart trading techniques, commodity funds, managed accounts, day trading, and options on futures. Some of the topics of interest are:
Gann techniques for technical analysis: Angell explains how to use the methods of W.D. Gann, a legendary trader who used geometric patterns, angles, cycles, and time factors to predict price movements.
Contrary opinion trading: Angell discusses how to use sentiment indicators, such as the Commitment of Traders report, the put/call ratio, and the Consensus Bullish Index, to identify market extremes and trade against the crowd.
Chart trading techniques: Angell describes how to use various chart patterns, such as trendlines, channels, triangles, flags, pennants, head and shoulders, double tops and bottoms, gaps, and reversals, to spot trading opportunities.
The trading plan: Angell emphasizes the importance of having a clear and consistent trading plan that covers the entry, exit, risk management, money management, and performance evaluation aspects of trading.
The book has received positive reviews and feedback from readers and critics who praised its practicality, clarity, and usefulness. Some of the comments are:
"This book is a must for anyone who wants to trade futures. It covers everything from the basics to the advanced techniques. It is easy to read and understand. It is full of examples and charts. It is one of the best books I have ever read on trading."
"This book is a classic in the field of futures trading. It is written by a successful trader who knows what he is talking about. It is not a theoretical book but a practical guide that shows you how to win in the futures market. It is worth every penny."
"This book is a treasure trove of information and wisdom for anyone who wants to learn how to trade futures. It is not a book that you read once and forget. It is a book that you keep on your desk and refer to often. It is a book that will make you a better trader."
How to apply George Angell's strategies and methods to win in the futures markets?
In this section, we will highlight some of George Angell's strategies and methods that you can apply to win in the futures markets. These are not meant to be exhaustive or definitive but rather illustrative and suggestive. You should always do your own research and testing before applying any strategy or method to your own trading.
The LSS Day Trading system and the 3-day cycle method
The LSS Day Trading system is a proprietary system developed by George Angell that uses a combination of price action, time cycles, volatility bands, trend indicators, and pivot points to identify high-probability trades in any market. The system is based on the premise that most markets tend to move in a 3-day cycle that consists of three phases: breakout (day 1), continuation (day 2), and reversal (day 3). The system aims to capture these phases by using different entry and exit rules for each day.
The basic rules of the system are as follows:
On day 1 (L day), look for a lower opening and buy near the low of the day. Use a volatility band or a pivot point as a target and exit before the close.
On day 2 (S day), look for a higher opening and sell near the high of the day. Use a volatility band or a pivot point as a target and exit before the close.
On day 3 (SS day), look for an extreme opening and short sell near the open. Use a volatility band or a pivot point as a target and exit before the close.
The system also uses various indicators to confirm the entry and exit signals, such as the Angell Trend Index, the Angell Swing Index, the Angell Cycle Indicator, and the Angell Momentum Indicator. These indicators are designed to measure the strength, direction, duration, and speed of the market movements.
The Gann techniques for technical analysis
The Gann techniques are based on the methods of W.D. Gann, a legendary trader who used geometric patterns, angles, cycles, and time factors to predict price movements. Gann believed that the market was governed by natural laws and that everything in the market was related to numbers. He also believed that history repeated itself and that certain dates and times were more significant than others.
Some of the Gann techniques that Angell uses are:
The Gann fan: This is a tool that draws a series of diagonal lines from a significant high or low point on a price chart. These lines represent different angles of ascent or descent, such as 1x1 (45 degrees), 2x1 (63.75 degrees), 3x1 (71.25 degrees), etc. The idea is that these lines act as support or resistance levels and that price tends to move along these lines or change direction when it reaches them.
The Gann square: This is a tool that draws a square grid on a price chart with equal intervals on both axes. The grid can be based on different numbers, such as 9, 16, 25, etc. The idea is that these numbers represent natural cycles and that price tends to move in harmony with these cycles. The grid can also be used to identify important price levels, such as the center, the corners, the midpoints, etc.
The Gann wheel: This is a tool that draws a circular chart with concentric rings and spokes. The rings represent different price levels, while the spokes represent different time intervals. The chart can be based on different numbers, such as 12, 24, 36, etc. The idea is that these numbers represent natural harmonies and that price tends to move in accordance with these harmonies. The chart can also be used to identify important dates and times, such as the solstices, the equinoxes, the new moon, etc.
The contrary opinion trading and market psychology
The contrary opinion trading is based on the premise that most traders are wrong most of the time and that the best way to trade is to go against the crowd. Angell argues that most traders are influenced by emotions, such as fear, greed, hope, and regret, and that these emotions cause them to buy high and sell low. He also argues that most traders follow trends blindly without considering the underlying fundamentals or technicals.
To trade against the crowd, Angell uses various sentiment indicators to measure how bullish or bearish the market is. Some of these indicators are:
The Commitment of Traders report: This is a weekly report published by the Commodity Futures Trading Commission (CFTC) that shows the positions of different types of traders in various futures markets. Angell divides these traders into three groups: commercials (hedgers), large speculators (smart money), and small speculators (dumb money). He then looks for divergences between these groups to identify potential reversals. For example, if commercials are net long while large speculators are net short and small speculators are net long, he would expect a bullish reversal.
The put/call ratio: This is a ratio that measures the volume of put options (bearish bets) to call options (bullish bets) in various markets. Angell uses this ratio to gauge how optimistic or pessimistic traders are about the future direction of the market. He then looks for extremes in this ratio to identify potential reversals. For example, if the put/call ratio is very high, he would expect a bullish reversal.
The Consensus Bullish Index: This is an index that measures the percentage of market newsletters that are bullish on various markets. Angell uses this index to gauge how confident or doubtful traders are about the current trend of the market. He then looks for extremes in this index to identify potential reversals. For example, if the Consensus Bullish Index is very low, he would expect a bullish reversal.
Conclusion and FAQs
In conclusion, futures markets are places where people buy and sell contracts that specify the price, quantity, quality, and delivery date of a certain commodity or financial instrument in the future. Trading futures can offer many benefits, such as leverage, liquidity, diversification, and arbitrage opportunities, but also involves significant risks, such as market risk, credit risk, operational risk, and legal risk. There are many types of futures markets and products that traders can choose from, depending on their preferences and objectives.
George Angell is a professional trader, educator, and author who has been trading futures since 1974. He has written several books on trading, such as Winning in the Futures Market, which covers all aspects of the futures markets from "What you need to know" to "What you must do to win". He reviews the basic fundamentals, definitions, and trading rules and strategies. He also includes chapters on hedging, chart trading techniques, commodity funds, managed accounts, day trading, and options on futures. Some of the topics of interest are the LSS Day Trading system and the 3-day cycle method, the Gann techniques for technical analysis, and the contrary opinion trading and market psychology.
To apply George Angell's strategies and methods to win in the futures markets, traders need to learn how to use his proprietary system and indicators, such as the LSS Day Trading system, the Angell Trend Index, the Angell Swing Index, the Angell Cycle Indicator, and the Angell Momentum Indicator. They also need to learn how to use his Gann techniques, such as the Gann fan, the Gann square, and the Gann wheel. They also need to learn how to use his sentiment indicators, such as the Commitment of Traders report, the put/call ratio, and the Consensus Bullish Index.
Here are some FAQs that you might have after reading this article:
Q: How can I get a copy of George Angell's book Winning in the Futures Market?
A: You can buy a copy of George Angell's book Winning in the Futures Market from various online platforms, such as Amazon, Google Books, or TradeWins. You can also borrow a copy from your local library or download a PDF version from some websites. However, you should always respect the author's copyright and intellectual property rights.
Q: How can I learn more about George Angell's trading software and indicators?
A: You can learn more about George Angell's trading software and indicators from his website, where you can find information about his products and services. You can also watch some of his videos on YouTube, where he demonstrates how to use his software and indicators. You can also contact him directly via email or phone if you have any questions or inquiries.
Q: How can I practice George Angell's strategies and methods without risking real money?
A: You can practice George Angell's strategies and methods without risking real money by using a demo account or a paper trading account. A demo account is an account that allows you to trade with virtual money in a simulated environment. A paper trading account is an account that allows you to record your trades on paper without executing them in the real market. Both types of accounts can help you test your skills and strategies before risking real money. However, you should be aware that trading with real money involves different emotions and pressures than trading with virtual money or paper money.
Q: What are some of the challenges or limitations of George Angell's strategies and methods?
A: Some of the challenges or limitations of George Angell's strategies and methods are:
The 3-day cycle method may not work well in markets that are trending strongly or have low volatility.
The Gann techniques may be difficult to apply or interpret correctly without proper training or experience.
The contrary opinion trading may require a lot of patience and discipline to go against the crowd.
The LSS Day Trading system and the Angell indicators may not be compatible with all trading platforms or data sources.
Therefore, traders should always do their own research and testing before applying any strategy or method to their own trading. They should also be flexible and adaptable to changing market conditions and situations.
Q: What are some of the benefits or advantages of George Angell's strategies and methods?
A: Some of the benefits or advantages of George Angell's strategies and methods are:
The 3-day cycle method can help traders identify high-probability trades in any market.
The Gann techniques can help traders forecast price movements based on natural laws and harmonies.
The contrary opinion trading can help traders exploit market extremes and inefficiencies.
The LSS Trading system and the Angell indicators can help traders measure and analyze market trends, cycles, volatility, and momentum.
Therefore, traders can use George Angell's strategies and methods to enhance their trading performance and profitability. They can also learn from his experience and wisdom as a professional trader and author.
This is the end of the article. I hope you enjoyed reading it and learned something new. Thank you for your attention and interest. If you have any feedback or questions, please feel free to contact me. Have a great day! 71b2f0854b