Explains commodity and futures trading and the pitfalls of this type of investment you won’t hear from the newsletter writers and “commodity trading gurus.”
Futures Trading
All futures contracts are generally made for the purpose of speculation or hedging. As such, the general procedure for settlement is the neutralization of the original contract by an opposite contract on settlement, so that only difference between the current and the contract price is paid or received. It is rare that actual delivery of the goods is taken, and the price paid in settlement of futures contracts.
Understanding Futures Trading
Many people have the notion that commodity futures trading is very difficult to understand. It may only seem difficult when you are new to futures trading, but once you understand the inner workings and get a hang of it, you will be well on your way to success.
People have a common misconception that commodity exchanges determine or establish the prices at which commodity futures are bought and sold. This is not true. Prices are determined by supply and demand conditions. …
Unearthing The Crazy World Of Futures Trading
You see them every day with a new and costly cell phone, driving every day in latest sports car, you hear of their super bonuses and hence decide to join the world of futures trading. Along with enormous bonuses and costly mobiles, futures trade mainly share two other traits:
1. High level of stress.
2. Huge risk.
It is true that many people are engaged in the Futures trading, many have become wealthy as well. If you are well known of the market, avoid greed and fear, …
Futures Option Spreads Delta Neutral Trading
There are many ways to trade futures option spreads. One way is to trade spreads that can profit from time decay. You can sell options which you believe will lose more time value than the options you buy.
Another way is to buy and sell options based on their deltas. Some of these trades are called delta neutral trades. Delta neutral trades are option trades in which the total delta of all the options is Zero. At the money options have a delta of 50.
If you buy an at t…
Mistakes of beginning futures and forex traders
There are many so called opportunities on the internet promising
vast riches for little work in the area of forex trading and futures
trading. Statistically 95% of beginning forex traders fail and quit.
In this article I hope to provide a little sane advice, to increase
this percentage for the good of all.
The Evolution Of The Giant Turtle
If you look very closely, as I have, at both the Turtle system in particular as well as other trend following systems in general, there are some things that have changed slightly. An examination of rolling five or ten year periods will show some smaller deteriorating statistics since the formal origination of the trading method back in the early 1980s. The total returns are slightly lower, the drawdowns are a little deeper, and the recovery periods are a little longer.