Tips on stock index futures
PHILLIP Futures investment analyst Howie Lee offers three tips for trading stock index futures:
DO A TECHNICAL ANALYSIS
After you have developed a trading strategy, be sure to do a "back test". Apply your formula to historical data and see if the strategy still holds water.
KEEP EMOTIONS OFF THE TABLE
Stay disciplined in cutting losses or taking profits.
KEEP ABREAST OF THE NEWS
Besides keeping a close watch on the United States market, pay attention to the corresponding economies for the stock indices you are trading.
Stock indices in India and Indonesia, for example, have performed well this year, due to elections in both countries.
"There's a risk-on sentiment from investors and traders, due to renewed confidence and the prospect of economic reforms," Mr Lee said.