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Written in an easily read style, Trading S&P Futures is basically an introduction to trading in the S&P 500 futures and index option markets, two markets which are very closely related.
The work provides an overview of many momentum and other technical indicators that may be employed for intermediate and short term market timing --- the time frames in which most futures and options traders operate. Among the indicators and chart formations described are Welles Wilder's RSI, Stochastics, MACD, the Commodity Channel Trading Index, Bollinger Bands, Tick and Trin, just to mention a few. Charting patterns are described and discussed from the point of view of favorable and unfavorable. Candlestick charting, a favorite among many futures traders is discussed as well.
Certain combinations of indicators are presented as effective buy signals, some as effective sell signals. These are not statisticlly documented with formal track records, in part, possibly, because there is a certain amount of subjectivity involved. We prefer to see statistical verification of trading systems, but this form of documentation does notgenerally appear in books that are essentially overviews rather than discussions of specific timing models.
New comers to the trading scene should find benefit in Lloyd's discussions as to the type of orders that may be employed in trading futures and options contracts and how, specificaly, to place such orders with brokers.
We know that many investors are unfamiliar with the language and techniques of options trading. Lloyd is of help in this area as well, showing how options work, how to compute possible gains and losses from options trading, and how different options strategies produce different profit - loss profiles.
Trading S&P Futures is more a book for new traders than for
experienced traders who are likely to be familiar with most of the material. The work was not designed to break much new ground, is more of a survey of concepts than a full discussion of any. References are provided for further study and we do advise readers to follow through by study of the references cited. Books of this nature definitely have their place as introductions to the world of trading in derivative instruments such as futures and options but are, of course, not the last words on the subject, more a starting pint in the educational needs of neophyte investors.
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