In investing, what is the significance of understanding the way futures trade?
March 14th, 2008
Archive
Archive for March, 2008
how is taxation done for gains in futures trading in the scrips?and at what rate?
March 13th, 2008
sam asked:
futures and options are derivative instruments which gain their value from underlying instruments.
there is confusion over whether they should be taken as speculative gains?
HARTUNG
futures and options are derivative instruments which gain their value from underlying instruments.
there is confusion over whether they should be taken as speculative gains?
HARTUNG
Trading stocks,futures, and options for a living?
March 11th, 2008
Trade asked:
Well I am in high school and love to trade. I am not a good student so i know im not going to be a doctor,lawyer and that stuff. I am a junior and have been investing/trading futures stocks and options for over 3 years now with great results. I don’t think its luck because i do use a strategy and a good one i kind of created from all the other pundits strategies and just experience. I am a discretionary trader. So i decided that i want to do this at home being self employed for a living. My questions are how many other people make a career doing this? Are they successful (millionaires)? My guidance and I talked about it and she even agreed a lot of trader drop out of HS or college and make millions! I have read a ton of books and i KNOW my strategy works in bull and bear markets last year year before that i made money and even this read after taking a 20% draw down i came back with my high for the year! I can control my emotions which is important in this business from what i hear. I have instinct i can just Sense when a stocks going to move and even if im wrong i cut my losses! I use stop limit orders, trailing stops and limit orders to execute my trades. So is this a smart decision? to pursue a dream life of trading??? Me i just want a nice mansion in NJ nice cars cloths etc. and a lot of traveling around the world.
ok i read security analysis and the intelligent investors and i must say graham is too old school those methods just dont work anymore dude… trading makes money daytrading makes even more quick cash. bottom line i know how to invest but investing is pointless unless you have over 50 million to invest it willl take you forever to get 50 Mil investing like graham and buffet just isnt in my interest..
thanks but you know its interesting because i did this personalilty test in career ed in high school and the thing i got got me really happy yet weird approx. only 1% of the american population scored it its perfectionist.. it also said most likly to become a millionaire and a good career would be analyst or trader sooo yeah the fact that ive been wanting to do this for many years and just last year i took this test and got that motivated me and this year is by far my best year! i come from a very poor country and stuff soo that i have this chance i have to take it ya know? and im used to living with little money which always helps ! i am also well aware that some traders lose maybe 80% in just weeks or months but they make it back its the traders who stick with it who make the big bucks in the long run… however even during this crash i only lost 20% despite being fully invested because i use trailing stops or stop loss orders… to help prevent from losing profits … i can make it
ya know the funny thing everyday that i skip school to trade stocks i make a lot of money! a lot more than i would being in school hahaha sure im missing earth science and language arts and math but im making more money than some students do their entire year working part time hahahaha
and i usually read 2 or 3 books a month.. on investing or trading im learning both things because i know once you reach a certain level you cant just trade all the time you have to invest..
GERSTEIN
Well I am in high school and love to trade. I am not a good student so i know im not going to be a doctor,lawyer and that stuff. I am a junior and have been investing/trading futures stocks and options for over 3 years now with great results. I don’t think its luck because i do use a strategy and a good one i kind of created from all the other pundits strategies and just experience. I am a discretionary trader. So i decided that i want to do this at home being self employed for a living. My questions are how many other people make a career doing this? Are they successful (millionaires)? My guidance and I talked about it and she even agreed a lot of trader drop out of HS or college and make millions! I have read a ton of books and i KNOW my strategy works in bull and bear markets last year year before that i made money and even this read after taking a 20% draw down i came back with my high for the year! I can control my emotions which is important in this business from what i hear. I have instinct i can just Sense when a stocks going to move and even if im wrong i cut my losses! I use stop limit orders, trailing stops and limit orders to execute my trades. So is this a smart decision? to pursue a dream life of trading??? Me i just want a nice mansion in NJ nice cars cloths etc. and a lot of traveling around the world.
ok i read security analysis and the intelligent investors and i must say graham is too old school those methods just dont work anymore dude… trading makes money daytrading makes even more quick cash. bottom line i know how to invest but investing is pointless unless you have over 50 million to invest it willl take you forever to get 50 Mil investing like graham and buffet just isnt in my interest..
thanks but you know its interesting because i did this personalilty test in career ed in high school and the thing i got got me really happy yet weird approx. only 1% of the american population scored it its perfectionist.. it also said most likly to become a millionaire and a good career would be analyst or trader sooo yeah the fact that ive been wanting to do this for many years and just last year i took this test and got that motivated me and this year is by far my best year! i come from a very poor country and stuff soo that i have this chance i have to take it ya know? and im used to living with little money which always helps ! i am also well aware that some traders lose maybe 80% in just weeks or months but they make it back its the traders who stick with it who make the big bucks in the long run… however even during this crash i only lost 20% despite being fully invested because i use trailing stops or stop loss orders… to help prevent from losing profits … i can make it
ya know the funny thing everyday that i skip school to trade stocks i make a lot of money! a lot more than i would being in school hahaha sure im missing earth science and language arts and math but im making more money than some students do their entire year working part time hahahaha
and i usually read 2 or 3 books a month.. on investing or trading im learning both things because i know once you reach a certain level you cant just trade all the time you have to invest..
GERSTEIN
Can somebody explain Futures Trading to me in the most simple terms?
March 7th, 2008
New To Bedford asked:
I am a novice in the Stock Market arena but need to understand how futures work.
YAMASAKI
I am a novice in the Stock Market arena but need to understand how futures work.
YAMASAKI
Learn Commodities Trading - What Do I Need To Know About Futures Trading?
March 6th, 2008
Comments Off
Mike Singh asked:
We assume that you are familiar with the basics of commodities - what they are and the different types of trading. In this article, we will delve in a little more into the futures trading, which is the most common found on many markets these days. Because it is the most common, here we will take a closer look.
A lot of times, commodities like oil are most commonly traded in future trades. For example a barrel of oil can be marked at seventy dollars on a contract for a future trade. The date of expiration will be on this contract, as well as the name of the company it is for. This name must be specific to be of any quality on the contract. This can help differentiate the place the person is expecting the oil to come from, because there are so many places it can come from.
Another very important aspect that should be discussed in intro to commodities part 2 and in regards to future trading is the price. The price itself is very closely related to the company it comes from. That is part of the reason it is so important to state on the contract, where the oil is being purchased. Or whatever the commodity may be at the time. As far as oil, the company affects the price because there are different production processes, refining processes and shipping costs and compositions.
Coming back to the original example in our intro to commodities is the fact that seventy dollars is being asked for this barrel of oil. This means that a small amount of this total must be paid up front. This is called a margin. Lot’s of different things affect this margin, but five percent is usually the average one. The contract will usually state how much oil they want and the five percent is determined from the total.
The main thing to remember in commodities is the date. The date when the product is due, in this case the oil, is very important. There are specialists who actually deal with the oil themselves, but the trader will have to ensure this happens. Otherwise there are lots of losses that can happen from this. However if the spot price, or the price of this oil at any given time, changes the contract must change to fit this information. Once this contract is signed, the trader is obligated. All details are best worked out ahead of time.
As you can see from this article, there is more to future trading in commodities than meets the eye. A lot of future trades in commodities are a lot more complicated. But this brief overview of the main way that commodities are traded should help you out.
LEITH
We assume that you are familiar with the basics of commodities - what they are and the different types of trading. In this article, we will delve in a little more into the futures trading, which is the most common found on many markets these days. Because it is the most common, here we will take a closer look.
A lot of times, commodities like oil are most commonly traded in future trades. For example a barrel of oil can be marked at seventy dollars on a contract for a future trade. The date of expiration will be on this contract, as well as the name of the company it is for. This name must be specific to be of any quality on the contract. This can help differentiate the place the person is expecting the oil to come from, because there are so many places it can come from.
Another very important aspect that should be discussed in intro to commodities part 2 and in regards to future trading is the price. The price itself is very closely related to the company it comes from. That is part of the reason it is so important to state on the contract, where the oil is being purchased. Or whatever the commodity may be at the time. As far as oil, the company affects the price because there are different production processes, refining processes and shipping costs and compositions.
Coming back to the original example in our intro to commodities is the fact that seventy dollars is being asked for this barrel of oil. This means that a small amount of this total must be paid up front. This is called a margin. Lot’s of different things affect this margin, but five percent is usually the average one. The contract will usually state how much oil they want and the five percent is determined from the total.
The main thing to remember in commodities is the date. The date when the product is due, in this case the oil, is very important. There are specialists who actually deal with the oil themselves, but the trader will have to ensure this happens. Otherwise there are lots of losses that can happen from this. However if the spot price, or the price of this oil at any given time, changes the contract must change to fit this information. Once this contract is signed, the trader is obligated. All details are best worked out ahead of time.
As you can see from this article, there is more to future trading in commodities than meets the eye. A lot of future trades in commodities are a lot more complicated. But this brief overview of the main way that commodities are traded should help you out.
LEITH
How would the margin requirement be accounted by a commodity trading organization?
March 6th, 2008
Canuk asked:
If you are a commodity trading organization trading futures and the brokerage needs a margin requirement — how is that accounted for in the financial statements? Is it an expense in the income statement?
SLAYMAKER
If you are a commodity trading organization trading futures and the brokerage needs a margin requirement — how is that accounted for in the financial statements? Is it an expense in the income statement?
SLAYMAKER
Is there any good website about future stock index trading price prediction?
March 6th, 2008
John asked:
With:
Fundamental and Technical analysis?
Short, Medium Long term prediction?
For market in US (Dow Jones Nasdaq) and
Asia (Hangseng, Nikkei, Kospi)?
With:
Fundamental and Technical analysis?
Short, Medium Long term prediction?
For market in US (Dow Jones Nasdaq) and
Asia (Hangseng, Nikkei, Kospi)?
I would appreciate for your detail answer… thx.
EDMONSON
Does Daytrading pattern rule apply to Index Futures Trading?
March 5th, 2008
Is this why Hillary is not releasing her tax returns of the prior years?
March 1st, 2008
Just Do It asked:
per the Wall Street Journal editorial: During the 1992 campaign, the Clintons claimed to be coming clean by releasing their tax returns from 1980 forward. But they steadfastly refused to release their returns for prior years, and only later did we learn that 1978 and 1979 were the tax years when Mrs. Clinton reported her 10,000% cattle-futures trading profit.
inform yourself first and then write.
per the Wall Street Journal editorial: During the 1992 campaign, the Clintons claimed to be coming clean by releasing their tax returns from 1980 forward. But they steadfastly refused to release their returns for prior years, and only later did we learn that 1978 and 1979 were the tax years when Mrs. Clinton reported her 10,000% cattle-futures trading profit.
inform yourself first and then write.
Obama did.
Why not Hillary?
ELZY