Futures trading could be the best high yield investment your ever going to find, but trading futures with little experience by yourself or without a proven strategy is like an ill prepared soldier heading into battle with a rifle thinking to himself that its the saving grace that’s going to get him through even though he hasn’t thought about what’s going to happen next. The analogy sounds ridiculous with an obvious answer that “no one would be that dumb” but the fact is this is what most new traders do and inevitably they bring about a quick end to their new trading career. Futures have long been regarded as one of the riskiest investments in existence, and understandably so with close to 95% of new traders losing almost all of their original principal within a 6 month time frame. So let me ask you this: If people only lost money trading futures then why does anyone invest in them at all? Simple because the other 5% that know how the game is played are making a killing! So does this mean that the 5% are reaping the benefits from the losses of the other 95%? In partial yes, but whether or not money is made has little to do with new speculators. The just add more liquidity to the market by providing extra buyers and sellers that would otherwise not be there. This is similar to a liquid housing market loaded with plenty of buyers and sellers allowing for homes to be bought and sold without dramatic price changes. Hedgers and fundamentals consist of most of the movement in the market not new traders.
So now we are left with the question of: If 5% of futures traders do make money than how are they doing it. Simple, they are utilizing back tested systems usually ran by computers (these days), for consistent execution of entering and exiting the market. Automated Trading systems have gotten very popular over the last 8 years with the bulk of the market no longer phoning in orders but placing them on a PC whether that be manual or automated. Now knowing this is half the battle. You still need to find a trading system that can withstand the test of time and not just work for a short period of time until the market conditions change. This is one of the largest flaws of most computer-generated systems; they aren’t people so they can’t use reason to change their pattern. They tend to operate based on some kind of trend trading contrary to the market direction. Then once the trend dries up the system operates in direct conflict with the markets pattern. I like using an automated system that is based on directional movement not fighting the flow of the market. When the system sees that the market is trending for a hard move in one direction or the other that’s the way it trades. The beauty of trading futures is that it has nothing to do with recessions, or whether the market moves up or down. You are able to profit from it moving in both directions (long: profiting going up) or (short: profiting going down)
A general misunderstanding about futures is that you’re not actually investing in anything. A futures strategy is basically just an equity machine that’s not committed to any long-term stay in the market. You don’t have to wait more than a day to get your capital out and your able to leverage a large volume commodity or currency to your advantage. For example: When you trade futures your using a small amount of money to control something that has much more value than you are using to control it. The money that’s in your trading account is margin or the equivalent of earnest money on a house. The earnest money doesn’t obligate you to buy the house but allows you to control if for a period of time. When you enter into the futures market you are hoping to take advantage of a price difference just like the way you would with equity in a home, then turning around and selling the rights to the contract for a profit. But what separates futures from a home or any other asset class is the fact that you can quickly take advantage of the loss in value of the commodity. The value change and turn around time will also occur much much faster in the commodity market unlike with real-estate and the Futures market is many times more liquid with plenty of buyers and sellers at any given moment.
This is the reason why good futures traders and Commodity trading advisers tend to make high returns because your not holding onto something that takes for ever to rise in value over time, you’re simply taking advantage of prices up or down multiple times per day or per month. A good trading strategy will lose once in a while there’s no way to combat that, but if it is a good strategy it should return you 2 or 3 times what it loses on average. When viewing the long term performance of a system don’t pay so much attention to how much it gains but how consistently it gains. I would rather have a system that earns small amounts steadily than one making insane profits only to keep you up at night because it yo yo’s back and forth so much. So you can see how you’re not really investing in anything just a way of quickly extracting money from the market and pulling out again.
I recommend that if you’re beginning in futures that you start by finding a good CTA (commodity trading adviser) and have him manage your futures account. There are several CTA’s with excellent track records out there. Most CTA’s will use an automated strategy that they watch continuously through out the day. If you have a good CTA he will pay close attention to market trends and adjust the strategy for loss as conditions change. He should also ask you about your risk tolerance and adjust your trading accordingly. The CTA has only power of attorney to trade your account he doesn’t have any access to your funds. A third party clearing firm that’s connected with the brokerage house the CTA is using handles your funds. Usually you can access your funds within one business day.
So……. Trading Futures Risky or Profitable? You be the judge. Many financial advisers will tell you that Futures are risky and believe me they have every reason to think this. But if you find a good system using the common sense I just explained above you will have the best high yield investment available that will most likely outperform ten fold what any mutual fund or other asset can do and with performance that isn’t related to how good the economy is doing.
Learn more about the best high yield investments. Stop by Eric Christensen’s site where you can find out all about high yield investment accounts and the difference it can make in your portfolio..
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There are numerous markets to trade, the most familiar involving the buying and selling of stocks and bonds. For many traders, however, a more fast-moving, more volatile market is preferred. Such is the nature of the market where commodities futures trading takes place.
Any type of trading is akin to casino gambling in some respects. And, as in gambling, luck plays a role but there are other factors as well. A successful trader, just like a successful gambler will usually utilize some type of system to better his or her odds.
Stock trading involves buying shares of equity in a listed company. As the company does well and grows its value increases and so should the value of its shares. This is how shareholders make money. They buy at a lower price than they later sell and the difference is their profit. If, however, share value goes down instead of up the investor will lose money (take a loss).
Trading commodities is different in that traders in this market are dealing with an actual physical substance. Some of the commodities traded, for example, include orange juice and coffee, corn, wheat and soybeans, precious metals, fuels and currencies. These items all have an up-to-the-minute spot price, which is the cost for buying a unit of the commodity at this exact moment. These prices fluctuate constantly (when the market is open and trading).
You can also buy commodities by utilizing a ‘futures contract’ for a specific item, whether it be gold or grain. With a futures contract, you’re agreeing to a future buying or selling price, to be transacted on or before a specific date. Most people trading the commodities markets are speculators who have no intention of actually taking delivery of, say for example, 5,000 bushels of corn or wheat. They are simply agreeing to buy at today’s price for a specific monthly contract in hopes that the price will increase and they’ll be able to sell back at a profit. Another option is to SELL now (if the price seems to be going DOWN) and by back later after the price drops.
Buying a futures contract puts you in LONG position. If the prices go up you will earn a profit when you sell the contract back. Selling a futures contract puts you in a SHORT position, hoping prices will drop. Then, when you later buy the contract back you will also profit. If prices go against your prediction your trade will close at a loss.
There are definite risks in commodities futures trading but it also holds significant upside potential too. Leverage enables individual traders to control large contracts with relatively small amounts of money but the chance of losing is always present. This market moves fast and is not for the weak of heart. Trade smartly!
Find more information about commodities futures trading today! When you learn how to trade futures, you will be able to take advantage of the numerous opportunities that present themselves to you easily!
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There are many reasons why a consumer would want to watch the latest oil prices. As we all know everyone has to heat their homes and the timing of buying your heating oil can be pricey if you get it wrong.
Oil prices can be very volatile, depending on the weather conditions when you are buying. Normally when winter weather hits and there is a drop in temperature, oil prices quickly react to the change. This is especially true when there has been a long summer than normal and gasoline consumption has been increasing. With this seasonal effect refineries can put oil production on hold so they meet the demands. When lower temperatures arrive and heating oil demand increases, so will the associated oil prices. Homeowners need to follow oil prices online to watch out for these seasonal changes.
About Investing in Crude Oil
There are a different set of people who need to watch the latest oil prices, this group are investors. Whilst crude oil investors have a real need to watch current oil prices, many investors who are involved in other related industries have a similar need. Our oil consumption has huge influence on large numbers of industry sectors. Petroleum is used in the manufacture of plastic, chemicals, and not forgetting the fuel that is consumed by large fleets of vehicles these companies run. Almost anything that depends on petrol is affected by severe changes in oil prices.
Planning Your Expenditure
Consumers who are planning vacations may need to follow the latest oil prices, or anyone who is strategically planning any other transportation costs. Businesses and consumers could easily save a lot of money if they watch oil prices closely and only make large scale transportation or travel arrangements during the seasonal times when oil prices are lower. You can accomplish this by watching for seasonal trends in oil prices and trying to plan travel according to the season which traditionally has lower oil prices.
Viewing Latest Oil Prices
Now with internet technology, the obvious place for a consumer to view oil prices is online. There are lots of online sources which display the latest price of crude oil. There are news sites dedicated to bringing breaking news and opinion on the changes in current oil prices. Simply searching for “crude oil price” will bring up a host of sites displaying live data and other forecasting tools. Make sure you help your own finances by staying up to date with oil prices and making some simple changes to your life routines.
If you need to view the latestcrude oil price. Our site Live Charts UK features the current oil prices on charts in real time, or historical formats.
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The bullish response to the news may signal China’s embrace of a full of futures markets.
News breaks from Shanghai Monday that: On the Friday’s breaking news from Shanghai of long-awaited Chinese stock index futures, Chinese blue chip shares hit their highest numbers in over 8 weeks.
The Yuan is up to 6.8263 against the U.S. dollar, which is higher than it was at Friday’s close at 6.8273.
Shanghai Composite Index moved over 2 percent to close at 3,124.
The Shenzhen Composite Index went up to 1,201 1 percent increase.
Analysts say that 3,100 is the current psychological pivot for the market. Having higher trading volume reinforces the sentiment.
Ping An, Securities analyst Li Xianming of Shenzhen said, “With the introduction of the stock futures, investors refocused on blue chip shares, as their previous performance has lagged behind the market.”
Chinese auto makers, lenders, and brokerages were among the gainers.
Better-than-expected annual earnings last week were reported by China’s three largest banks.
Bank of China Ltd. at 4.36 Yuan rose 3.1% Industrial & Commercial Bank of China Ltd. at 5.02 Yuan rose 2.5% China Construction Bank Ltd. at 5.71 Yuan rose 2.3%
The two largest brokerages rose as well. Citic Securities Co. rose 3.5 percent to 28.36 Yuan, Haitong Securities Co. gained of 2.8 percent to 17.07 Yuan.
The auto makers win as well. Zhejiang Geely Holding Group signed a deal Sunday to buy Ford Motor Co.’s Volvo Cars. SAIC Motor Co., The local partner of General Motors Co. Volkswagen AG (VGC), jumped 3.7 percent to 20.45 Yuan, Ford Motor Company partner, Chongqing Changan Automobile Co. rose 1.2 percent at 6.97 Yuan.
With the announcement and China’s Blue Chips increasing on it looks like capitalist principals are taking deeper root. It is highly unlikely that the surge in the sectors of auto manufacture, lending, and brokerages is mere coincidence.
James Horne has been a financial analyst for over 10 years. He is CEO of Pure Reason LLC, the home of Shadowtraders. His voice has been heard by hundreds of students learning to trade the Futures Market with Shadowtraders online day trading strategies. Before you buy any trading software, make sure you attend Shadowtraders Monday Night Webinar, and hosted by Barbara Cohen
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Options are a terrific way to shield gains and hedge. Also , they are an excellent method to enhance gains, sometimes substantially. Although, the main element to undertaking all this is being familiar with just how one can use them effectively.
Unfortunately in the market, options are still rather badly understood. It means that lots of folks finish up utilizing them improperly. An effective way for folks to acquire a complete understanding of options and how best to use them, is via a total options education.
Although, actually that may be not enough, potential traders should receive the appropriate training. You will find a massive variety of training companies and courses on the web, but most will train options in exactly the same way. This can be to basically show their students textbook options strategies and systems and then leave them to go live in the marketplace.
Sometimes it is OK, and fulfills simple requirements, but many students struggle from this position, since they do not genuinely fully grasp the way to find the opportunities where these techniques, or approaches can be utilised.
To effectively profit from options, traders need an options education organization that can initially help them learn how to locate and discover opportunities when options may be used, and then go onto to show them the correct techniques and approaches to achieve full benefits.
Ideally these organizations need to give traders with the opportunity to practice their knowledge and learn with profitable professional traders, in full market situations.
This sort of practical knowledge really can end up being priceless, although it is something that few will ever have access to. Although ultimately, if you are seriously interested in achieving success with options, they need to try and find an options training organization that can offer this sort of tuition.
To see an independent review of the best options trading companies that can teach people how to first find possibilities in the market and then teach Options Trading Systems, and The Way To Trade Options, just follow the hyperlink.
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Most of the people who invest in stocks, only know about the New York Stock Exchange (NYSE) or the NASDAQ over the counter market. Futures trading is one of the ways to grow your wealth. There are many dozens of futures contracts that you can trade ranging from crude oil, gold, ethanol, heating, gasoline, silver, copper, wheat, corn, coffee, soybeans, pork bellies, cattle, interest rates, currencies and others.
If you want to trade commodities than trading commodity futures is the best way to profit from the boom in the commodity market. Richard Dennis had started with only $400 and ended up making more than $200 Million trading commodities. Now, let’s discuss the three largest futures exchanges in the world. There are many futures exchanges in the world but these three are the most popular and the most important.
The number one is the CME ( Chicago Mercantile Exchange). The futures contracts that get traded on CME include among others stock index futures, foreign currencies, interest rates, commodities, environmental futures and others. Futures trading is no doubt risky but if you learn it, it can be highly profitable. As said before, Ricard Dennis and his turtles used to trade the most liquid contracts in the market.
The commodities futures that get traded on CME include live cattle, milk, lean hogs, feeder cattle, butter, limber, pork bellies, Goldman Sachs Commodities Index and fertilizer.
CME provides you with the opportunity to trade futures contracts on these stock indexes as well as their mini versions the E-Minis. Now, one of the ways to trade stock market is to trade stock indexes like the various S&P 500 like the S&P 500 Midcap, Small Cap as well as the Russell 2000 and the NASDAQ 100.
Other important futures contracts that get traded on CME include single stock futures, futures on ETFs and futures on Japanese Nikkei 225 Index. CME group also has the GLOBEX Electronic Trading Platform that allows electronic trading of futures contract almost around the clock.
The second most important futures exchange is the CBOT ( Chicago Board of Trade).The futures contracts that are available on CBOT include agricultural futures like the soybeans, ethanol, rice, corn, wheat and others. Mini contracts on corn, soybeans and wheat are also available for trading on CBOT.
Interest rate related futures contracts that get traded on CBOT include Treasury Bonds, FED Funds, spreads, municipal bonds, German debt and swaps. Dow Jones Industrial Average (DJIA) futures popularly known as Dow futures and its E-Mini version plus gold and silver futures and their mini versions also gets traded on CBOT.
The next major futures trading exchange is the New York Mercantile Exchange (NYMEX). This is infact the global hub for energy trading and offers futures contracts on light sweet crude, natural gas, unleaded gasoline, heating oil, electricity, propane and coal.
Futures contract on precious metals like gold, silver, platinum and palladium also get traded on NYMEX. Futures contracts on metals like copper and aluminum also are available on NYMEX.
Mr. Ahmad Hassam has done Masters from Harvard University. Know this shocking Dow Futures secret that can make you rich. Get your FREE COPIES of the HVMM Ultimate Day Trading System and the Universal Risk & Money Management Tool just now.
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