Futures Trading Blog

supriyad7 asked:


sir
i’m a regular stock market trader doing trading in cash, future ,fo . as it hasbeen said that if turnover crosses 40 lakhs then audit is must.
i like to know how this calculation is done .

SNARR

ZedNeon asked:


It could be anything from stock market trading to Futures and Options or even Forex. Could be Day-trading, Online-trading, etc. Please feel free to list as many websites as you might know about - as long as they are FREE. Also, any good book suggestions and/or tips?

JOLLIE

reyert asked:


Detrending adjusts for inflation. But then any long term trends are removed right? So do many traders detrend?
I have already seen that site. But I have read that other funds dont detrend. Why?

GRAU

Jason T asked:


EB Games Canada has a deal where if you trade in 3, 5 , 10 games, you get an extra $10, $120, $50 credit respectively, for future trading.

What is the minimum amount a game has to cost to qualify for this??
lol sorry it is supposed to say

$10 , $20 , $50 respectively

KUNG

tradingsystem asked:

http://mastertrader.biz/

BRODY

Sophie Tucker asked:


to being in a depression

RUGH

Ricky Lim asked:


There’s no doubt that futures trading is inherently a risky business. Anyone who tells you it is 100% risk free is either ignorant or trying to sell you something. The truth is futures trading is a gamble. There’s no telling when you are going to win or when you are going to lose. The best strategy is to play this game based on the cards you have and hope for the best.

Futures trading does have huge rewards if you win and that’s probably the reason many people are attracted to it. However the chances of you losing big is just as great if not greater particularly if you are new to futures trading.

I outline the 4 main risks when trading in futures. You might want to read further before deciding futures trading is suitable for you.

1. Speculative Business

Futures Trading is speculative in nature. No matter what the experts tell you or predict, it is not always 100% accurate. Take it with a pitch of salt. The best investment strategy is not to put all your eggs in one basket, divesting your investment among different financial instruments.

2. Financial Backing

Futures Trading requires a large capital outlay at the beginning which is expendable. Therefore it is definitely not for the faint of heart. If you are thinking of making money in futures trading to pay your bills, then my advise is don’t. You should not use money to pay your bills/loans/grocery to dabble in futures trading. Only use money you can afford to expend.

Ideally, a person who wants to play in futures trading should have at least $10,000 USD in his/her personal trading account.

3. Technical Knowledge

Futures Trading requires an intimate knowledge of financial instruments. At the very least, you should be knowledgeable in the 4 main investments categories namely, income, growth, speculation and inflation hedges. Without adequate knowledge, it will restrict you to where you can invest on the market and lose potential revenue on a particular sector of the financial market.

You might be thinking I can always rely on my broker for advice. While it’s good to seek the advice of someone knowledgeable, you should be able to make intelligent decisions on your own and the only way to do that is if you have sufficient knowledge.

4. Only Invest What You Can Lose

I would not advise someone new to trading to dabble in futures simply because of the risks involved.

You should have a balanced portfolio with only a certain percentage invested in futures. My advise is about 10% but that depends on your financial standing and your investment strategy. In general, only use money that you can afford to lose in futures trading.

The 4 main risks I outline above is not meant to discourage you from futures trading. What I want to make clear is you fully understand the risks involved and also what you need to do to better your chances at winning in futures trading.



BRODER

Justanian asked:


Normally when we buy a future we set a target to book profits. But, when the market falls we are loath to put a stop loss and we loose a big chunk of money. Last year I made a profit of about fifty thousand dollars playing in future. This year all that proft got wiped off in just three months. Should I stop dabbling in futures?

CAUDLE

Joe S asked:


I have a quant background in hedging, so I’m not asking for guidance on how to learn modeling or developing strategies for trading options. I have work experience doing option valuation and developing dynamic replication strategies, but I have never done the trading.

I want to start relatively small - I’m comfortable putting about $20K at risk. I would be looking to hedge options against options while trying to limit the amount of dynamic hedging. I expect that I’ll need set up some margin in addition to any net option premium. Is $20K reasonable?

Are there brokers specializing in options? Does anyone recommend CME, CBOE or other tools? (I know that some exchanges offer tools for subscription.)

Thanks!

QUATTROCCHI

Oswald asked:


I want to learn about trading some commodities like oil, metals, or agricultural products like coffee or cocoa. The more the better.
I may want some websites that offer free membership or else.

VANSCOOTER