Entrepreneurship, to me, is the perfect concept for the retail trader and investor to consider before committing time and capital in the futures markets. The terms trader and entrepreneur are synonymous and are used interchangeably in this article. Noted Austrian Economist and recently fancied proponent of the free market, Murray Rothbard eloquently explains:
“Entrepreneurship [in markets] is the dominant characteristic of buyers and sellers who act speculatively, who specialize in anticipating higher or lower prices in the future. Their entire action consists in attempts to anticipate future market prices, and their success depends on how accurate or erroneous their forecasts are.”
—-Murray Rothbard; Man, Economy, and State.
What should particularly stand out from that passage is the definition of an entrepreneur – one who organizes, manages, and assumes the risks of a business or enterprise. The term reflects individuals whose conviction to cause, diligence and innovation can be rewarded with fortune and recognition. Yet, how many people do you know are successful entrepreneurs and how many are not? Typically more individuals become “failures” rather than proclaimed visionaries. Failure is a critical component to the concept as well. It illustrates to potential entrepreneurs that being successful does not come easily, and there is probability that you may lose. Not to say that these inherent disclaimers are not lost.
To compete in the futures market, which is full of sophisticated traders and high frequency trading machines, one needs a solid plan, such as a business plan, detailing the operation of the venture. How will one deal with the rapidly changing landscape as well as analytically expand/diversify operations? Here’s the critical part — accepting risks. Smart entrepreneurs know they will lay everything on the line and potentially lose everything and then some. The trader applies blood, sweat, tears and TIME to achieve a particular goal.
Daniels Trading wants to set the expectation that speculating is not an easy proposition. Who can speculate on future prices when there is so much uncertainty in the market? Fiscal cliff, Euro region issues, election season, Iran, global slowdown and hundreds of other headlines that are easily and expeditiously priced in because of advancements in technology. If you are a trader, specifically investment minded, and will entertain a possible solution in these times, consider harnessing the power of black box trading systems. Investors can compare participation in an automated trading system to a franchisee purchasing an existing business. Retail investors have limited resources and may lack the ability to properly compete. Trading systems offer such individuals the ability to participate in a structured trading program without dedicating significant time and capital in the process.
A black box, robot, machine or more commonly known as automated strategy are computer based software programs that generate entry and exit signals and execute trades. The DNA of such trading can be associated with a professional trader, one who is unemotional, sticks to the strategy, always searching for opportunities while managing risk to reward consistently and effectively.
Now imagine a professional trader who never sleeps, never blinks, and executes his plan flawlessly on the markets he traded. This trader has no opinions on USDA reports, elections or European debt issues. Such things have no bearing on the implementation of the tested strategy; only mathematical organization of data points generated from market activity are relevant. That is black box trading at its finest.
Algorithms, which are the brain of automated trading systems, are composed and vary depending on strategy. The formulas analyze metrics like price action, momentum, divergence and many others. Our automated strategy office has analyzed countless strategies, and a select few are offered to clients. These systems are available in our proprietary database called Strategy Center, where entrepreneurs can view hypothetical performance, review detailed reports, and even combine multiple strategies to create a diversified portfolio of these instruments.
Daniels Trading works directly with independent system programmers; we understand the methodology and execute an assortment of strategies to the developers’ specifications. We do even more than that! We work one-on-one with clients to identify which systems are best for your particular goals. We actively monitor the system and provide easy-to-use technology to transparently provide access to your system. If you are already a prudent trader, we can program your strategy into this format.
Trading markets can be a fun and costly hobby if a trader only participates to be a part of the “club.” Trading is difficult, and many people have inordinately destructive expectations that little time and effort will bear fruit. Simply stated, beginning and experienced traders are human and have certain limitations, computer based trading systems are engineered to give us an edge.
dt Pro Futures Trading Software Demo
Daniels Trading’s dedication to providing the premier futures trading software in the industry was driven by our relentless pursuit of satisfying the needs of active traders and offering a trading platform that would truly set us apart in the industry. The result is our dt Pro.