Futures Trading Blog

IraEpsteinFutures asked:

iraepsteinfutures, Futures Trading, Online Trading, Stock Indexes Review, Sales: 800-284-3010

TRUEHEART

NICK b asked:


I have a card collection and sold none of my cards due to the fact with the sports industry enhacing each year will the Card business be booming a gain in ethe future or near or is it now because on ebay people are buying trading cards like hot cakes!

AKPAN

Albert Smith asked:


A lot of people seem to think that futures trading is harder than trading in other financial instruments. But like all things in life, it’s only hard because we don’t understand it fully. The basic principle that you need to remember is that the bigger the risk, the bigger the potential payout, and this cannot be any truer for online futures trading. Online futures trading can be profitable once you understand the concept and inner workings in its entirety; get the hang of it and be on your way to online futures trading success. You’ll also need the right attitude; think you can succeed, and you will.

The first step to profitable online futures trading is the method you employ on a trade. Day trading is a common practice, but in order to rake in the profits you’ll need to catch the big trends, and the way you can catch them is by using the breakout method.

What exactly is the breakout method?

It is a system whereby the trader capitalizes on the moment when price momentum carries a stock beyond the breakout point, far enough for the trader to grab a profit. Such trades can be long or short, depending on the direction of the break. Most traders lose most of their money because they don’t use a breakout system, and this is where you can learn from their mistake. By using a breakout system the right way, you can win big at futures trading. Step 1 of profitable futures trading is to trade on breakouts.

So what’s step 2? Many traders lack the confidence to stay with the system for long, and this is where they fail. It boils down to simple human psychology; out-psyche your competition. You need to have the discipline when others don’t, and you need to understand money management well in order for your trades to be profitable. Every investment has a risk, and a lot of traders would rather stick with as little risk as possible. So in order for you to make it big, you need to take the risk when others aren’t. Of course you shouldn’t be rash about it; take a calculated risk when you see a trade worth making. You might not be trading a lot this way, but every trade that you do make will be the best ones anyone else might not have dared to capitalize on.

Step 3 to note is that about 90 percent of traders fail when trading futures, so avoid being part of the statistic by trading in isolation. It is imperative that you stay focused and not let the news or doubtful traders or even your own doubts affect your staying power. Those who fail at trading futures only have themselves to blame, because they allow themselves to be swayed by the hearsay of others who tell them that they are wrong, that they’re taking unnecessary risks. It’s important for you to remember the basic principle of investing, as mentioned in the first few lines of this article: the bigger the risk, the bigger the payout. Discipline is crucial if you want to earn bigger returns from online futures trading, and you must not let others sway you from your decision to stick with your chosen strategy.

So there you have it. By applying these 3 easy steps to profitable online futures trading, you too can win big at futures trading. All it takes is discipline and a little bit of confidence!



CLINGERMAN

rainfingers asked:


Here’s what I’m thinking of doing:

Pick a future that’s been volatile lately
Buy an option on the future to increase the swing even further
Watch the swings, and if I’m up 25%-30%, close the position.

Would this work? I’m not interested in researching fundamentals or following technical indicators. Of course, I wouldn’t risk more money than I can afford to lose.

MENDELL

Dianna N asked:


I want to trade both stocks options and future options at the lowest online price using one account.

ORMOND

doug l asked:


I have a US History Degree
I live in basically downtown Chicago near the board of trade Merc. I would like to take my strong interest, into a position within the actual functions of the market. Besides being an at home day- trader, how could I get into a full time role where I’m either trading within the CBOT/Merc or working for a firm involved in Stocks/Finance.

I dont have any experience in the industry, have a college Degree, and 2 years in sales.

Tell me how I could make my dream come true

STREY

Andy West asked:


Futures trading is an incredibly risky venture. With all of the ups and downs in the futures cash market, it is imperative to understand the signals and know what to do when they occur. Of course, signals and the appropriate actions are all theoretical approaches to trade and the cash commodity market. However, traders do have some options to help minimize their risks and losses. Nonetheless, understanding the fundamentals of futures signals, values, and risks can better prepare any trader for the tasks that lie ahead.

It is important to understand the fundamentals of futures signals. Growth and inflation are the cornerstones of the futures markets. With an understanding of growth and inflation, traders are better equipped to make the right decisions. Basically, the prices on the futures market are based on what the market is expected to do. Thus, future predictions of growth and inflation are more important than the historical data on what the market has done in the past. Knowing the growth and inflation predictions enables the trader to make more sensible decisions in this regard.

While predictions are important, so are technical indicators. This deals with knowing trends and spotting indicators before the price becomes less-profitable. These indicators can come from historical data or a careful observation of prices over a period of time. There are also mathematical formulas for these indicators which include movements based on standard deviations from the equilibrium.

Traders should fully understand market values. Over the long term, prices tend to stabilize and equalize around a particular point (the market equilibrium). Price fluctuations are expected in both directions. Traders need to be able to distinguish between price fluctuations and trend reversals. Extreme price deviations are great signals for the trend reversals. The trick is to catch the reversal while the trader is ahead. This is not always simple, but it is something that can be learned and observed.

Additionally, traders should be aware of the trading behavior. Self-awareness is essential to controlling risky behavior. The term “Risk Appetite” refers to the trader’s penchant for risky or safe acquisitions. By being self aware, the trader is at a psychological advantage and is more likely to make rational decisions.

In order to fully understand futures signals, investors must fully grasp the concept of supply and demand. Those that are the most successful at futures trading are those that understand all of the factors that play into supply and demand. Consistent and diligent research of any invested market will result in the best efforts and highest probability, as long as the investor follows through on what the research shows. Since the commodity market is highly fluctuating, a loss is inevitable even with the proper research.

Futures traders can help minimize their losses by pursuing several opportunities. A buyer can take a short futures position and hope the futures prices will go down. Alternatively, investors can place a limit or stop-loss order and only buy or sell if the desired price is reached. The Commodity Exchange Act also places in some protections for traders. This is governed by the Commodity Futures Trading Commission, which is an independent agency of the United States government.

Futures trading can be fun and profitable for investors with the right knowledge and information. A keen eye for signals and indicators is an added bonus. Investors also need to know what futures signals to look for and how to act accordingly. The best trader will act rationally and not out of fear or misunderstanding. A careful analysis of the supply and demand along with continuous research and consistent observations will yield the best results and will maximize profitability.



PAVLICK

mikid asked:


lets say chicago board of trade has soybeans offered 879 and bid at 876, how would the trade acutally work, would the buyer increase his price to match the offer or would the seller reduce his offer to match the bid. and what happens once a trade is done, do the buyers seller on the mkt then change their prices again immediately???

SIVAK

TradePilotPro asked:

Trading

KULP