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An interview on complete futures trading systems. Stuart McPhee quizzes legendary trader Ray Barros.

Ray Barros: Mark Douglas, the guy that taught me many things about trading said that irrespective of our personality, some traders may be subjective where they have set of rules but also have got intuition to play with.

There are the fully mechanical who will follow our rules no matter what, and a discretionary who has no rules. That’s fine whatever suits, but the point Mark made was everybody should start with a mechanical system just to learn discipline. In that environment I think indicators play a part.

Stuart McPhee: Okay, that’s a good segue with discipline because that was my next question. I mean I always say its the most important attributes successful traders have personality-wise – the ability to do what they have to do whether I want to or not. I have had a couple of clients come to me in the past and said, ‘Stuart I know everything I have to do.

I have a plan that follows the rules. I just can’t follow the plan. I know disciplines are important but I just can’t do it. I just can’t follow the plan.’ If you had people say that to you do you have any advice to people who have discipline as an issue?

Ray Barros: It depends. You know I run mentor classes. Some students I can assist them and some I can’t because some people have a lack of discipline from sheer habit. We can create new habits. You identify the belief system behind their lack of what payoff there is for not following whatever it is they are not following through. You can substitute positive belief for that negative belief and you slowly create new habits. That’s doable. However, there are some people who really have a problem. The best way of doing that is to tell a story. I had a student and no matter what I did we had this major problem. Mike could not trade leveraged instruments; stock markets he was fantastic, he followed the rules.

This is a true story so this is his real name. Mike if you are out there, forgive me. Mike could trade stocks perfectly. He wanted to trade. Honestly I was at wit’s end. Nothing I did worked because I couldn’t understand why he would follow the discipline trading stocks but shifting into leverage instruments, and particularly futures trading systems, and he became the biggest cowboy in the world.

There was a guy called Dave Hunt who used to run seminar classes for me in Sydney and he did an exercise and Mike got brought into this exercise.

Basically it was a regression exercise where we go back to childhood. In the process of that the story came out. Mike’s grandfather lost the entire family fortune trading gold futures so throughout his life he was brought up with the idea trading futures is a sin. It’s gambling; honest people don’t do it.

That’s what I call a fundamental belief that was running through Mike’s head and he was unconscious of that and so whenever he traded futures he was going to sabotage himself. If you have that sort of problem you need someone who is skilled enough to bring it up and you know I mean a psychiatrist or psychologist or someone very well versed in that area.

Stuart McPhee added: To go deep, deep in the mind.

Ray Barros: Bring out an unconscious fundamental belief paradigm. And he wasn’t aware of that. He wasn’t aware. He broke down and then he actually cried. It was enough for Mike. From then on I think he turned the corner. He was able to start trading with the discipline that he needed for futures trading systems. So it’s amazing. You will see in the blog I continued the therapy and the stuff that comes out is unbelievable I would recommend it to any trader.

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Up until recently, if you wished to engage in commodities buying and selling, you would have to call your commodity options broker every time you desired to make an order. You would then wait for a callback and confirmation of your request. It could be an extremely irritating and nervous enterprise.

The great news is that, nowadays almost all commodities brokers supply you with the capability to perform futures exchanging on the internet. In actual fact, an increasing number of of these companies concentrate solely on online transactions.

What do I want to find out about futures trading on-line?

Futures buying and selling is actually serious business and you ought to certainly research your options in advance. Develop and test your trading plan before you fund your account. You don’t want to find out the basics with real money. For that reason, most, if not almost all, online commodities brokerages should have a means to be able to simulate your positions. Learn their website and mechanism to ensure that you know precisely what you are engaging in.

Additionally, begin slowly but surely. Make only a few transactions at the start and assess how those did. More just isn’t better when it comes to commodities investing on the internet. If you can’t earn profits with only a few transactions, then you’re prone to dig yourself right into a deep hole if you ever ramp up the volume of transactions you are making. Avoid over trading!

Are you ready for advantages to commodities trading online?

The key benefit to having an on-line futures broker is that you are going to have a great deal of info close at hand. Any good internet broker will have plenty of charts, quotes, analysis and helpful software programs that will help you place the perfect trades.

As we mentioned previously, another great benefit of futures trading on-line is actually the speed in which your trades get completed. Well, on top of that, not only do you not require to spend time playing telephone tag with your brokerage, also you don’t need to pay any expensive comissions. Many on-line commodities brokers impose under $10 for every trade.

How do I prevent basic errors with online commodities trading?

Just as we discussed earlier, stay away from over trading. Start slowly and learn from your beginning transactions. Likewise, make an attempt to consider long term positions. It’s quite attractive to try to take advantage of every one of the smaller movements inside the futures marketplace. Avoid these kinds of temptations. Leave daytrading to the people crazy enough to pursue it. Trust me, your heart can’t cope with the stress and heartbreak of day trading.

When you develop your investing strategy and do your homework, commodities market trading online can be quite rewarding. Especially if you’re able to keep your concentration and self-control and continue to pinpoint the bigger picture. Don’t forget, if this was very simple and demanded no effort then absolutely everyone would be a billionaire. But, it’s really not brain surgery!

Watch this Stock Market Training FREE Video Series that show how to spot the 4 low risk and high probability profit pockets in any stock chart. These stock market training FREE video series is a complimentary gift from Bill Poulos, a veteran trader of many decades and a highly repected trading coach and mentor. Learn How To Trade Futures from Malcolm Robinson, a former LIFFE futures trader. Know this shocking Dow Futures secret that can make you rich. Natural gas (NG) maybe the best trade of this decade. Traders and investors are buying as much natural gas as possible. Analyst Ian Cooper called the bottom in the natural gas and told the readers of $20 Trillion Report to go super long. Ian called it the Ultimate Contrarian Bet. Why he is asking his readers to go super long.

Simple, the supply is out pacing the demand. The ability to drill for shale gas had made the supply picture look unlimited. In the short term the supply picture is bleak. So why now is the best time to buy the NG stocks. Summer is the time when the demand for NG is the lowest.

This is the weakest time for the natural gas consumption. So what you do is buy in June-August and sell in December-January when the North American heating demand will be at the year’s high. Last years in September 2009, NG market saw a large seasonal jump.

So as a trader when you take a look at the natural gas market, you find that the market is poised for a huge breakout. The supply is not keeping pace with the demand and you have the ultimate contrarian bet. So, how to go about trading NG.

One way is to invest in natural gas stocks or ETFs. The other way is to trade natural gas futures.The most direct way to profit from the volatility in the NG market is to trade natural gas futures. Futures trading is something that many investors and traders ignore at their peril.

In fact the futures market is huge. It is a highly regulated market unlike the currency market that is unregulated and over the counter. If you are really interested in trading commodiites than you should learn futures trading. There are dozens and dozens of different futures contracts that you can trade.

So, having the skill to trade futures can give you the opportunity to trade almost any commodity market. Right now there is a great opportunity in the NG, tomorrow, you can profit from the crude oil, gold, silver, other precious metals and even agricultural commodities like cotton.

If you want to learn futures trading than first thing you need to do is to paper trade for at least two months. Two months are enough for you to learn futures trading. You have ample of time to setup the best trade for this decade! So don’t miss it!

Download these 3 great Trading Discipline Audio by Norman Hallet and listen to them. These 3 audios can change the way you trade. Master these Candlestick Patterns with this 82 page FREE PDF Candlestick Guide. Know this shocking Dow Futures secret that can make you rich! Norman Hallett from The Disciplined Trader Intensive Program: If you’ve come to believe that the ‘big money’ in the stock market is always out to get you, or, that the ‘suits’ on Wall Street aren’t ever going to give you a fair shake… There may be some truth in your concern.

Why? Simple. The ‘smart’ money always knows what YOU are going to do. They can predict it and react to you every time you put your money in the market. Wouldn’t you enjoy that same advantage? You’re about to…

Meet Barbara Cohen of ShadowTraders, and a veteran Futures trader and educator who has helped thousands of people just like you learn how to avoid the minefields of the markets and become market ‘stalkers’ in just 12 minutes a day… and it didn’t matter if they had years of experience or no experience at all — in fact, Barbara’s own introduction to trading came from a book with over 750 pages of trading formulas. 750 formulas! (She programmed every single one of them into her trading computer). But, over time, those formulas (and many other ‘lessons’) have taught her how to:

– ‘shadow’ the smart money in the market.

– buy when they buy; and sell when they sell.

– see through the recent ‘unusual’ happenings in the stock market.

Now, in an exclusive online strategy session, Barbara will share her top tricks and best ideas with you so that you can see how it’s possible to ‘stalk’ the smart money in the markets…She’ll also show you some of what she calls “sneaky secrets, dirty tactics and hidden answers” that the Wall Street pros, the government, and the media don’t want you to know. Join Barbara on this NO COST Online Strategy Session this Wednesday, April 21st at 4pm Eastern time, where you’ll learn:

*** Why the average trader keeps getting taken to the ‘cleaners’ in the stock market (and how to fix it).

*** Why you can’t trust ANY information from the government or media.

*** An “Insider’s” look at the EMini Market, and why you should trade them.

*** Why most people approach futures trading incorrectly (and get burned)

*** The personal trading strategies Barbara uses every day.

…and much more!

Barbara will also have a very special guest, Melanie, who will share her personal story about how she went from knowing nothing about trading to becoming a full time trader. It shows that anybody can do it! So, if you’re serious about taking control of your financial future or if you’re tired of all the manipulators who scheme and scam their way to billions…then register right now to learn how you can take the first smart steps to changing your future, with Futures! So…

Barbara keeps these meeting to a limited number, so if you’re interested, register early. I’m telling this a few days before the Webinar so you’re sure to get in (and get the replay if you miss it as registrants should get a replay link).

Get your FREE COPIES of HVMM Ultimate Day Trading System plus the Universal Risk & Money Management Tool just now. Read this 40 page shocking FRWC Brutal Truth FREE Report that exposes everything about trading robots. Download this 49 page Quantum Swing Trading report FREE. Did you take your coffee today in the morning? Most people start their day by drinking coffee in the morning. Coffee is an important global commodity because folks just love a good cup of coffee. In fact, coffee is the second largest heavily traded coffee after crude oil.

Just like other commodities, coffee production is dominated by a few countries led by Brazil, Columbia and Vietnam. Now, if you want to know more you can visit the website of International Coffee Organization and The National Coffee Association of USA. How about making money from coffee futures while drinking your cup of coffee? Hey, it’s not a bad idea!

The coffee futures market is basically used by the coffee producers and purchasers for hedging from wild price swings. In addition to hedging, the coffee futures market provides small investors to profit from fluctuations in the coffee prices. The most liquid coffee futures contracts are provided on the New York Board of Trade (NYBOT).

NYBOT is one the premier locations for the trade of agricultural commodities. Don’t know NYBOT? Watch the movie, “Trading Places” starring Eddie Murphy and Dan Aykroyd. It was shot at NYBOT. NYBOT coffee futures is one of the oldest futures contracts in the market.

The contract ticker symbol is KC and its size is 37,500 pounds with price fluctuation of $0.0005/pound. Trading months are March, May, July, September and December. Because of seasonality, cyclicality and geopolitical factors, coffee can be highly volatile commodity and can experience extreme price swings. These price swings are what futures traders bet on. Now before trading coffee futures do a good research on the coffee market inside out.

Now when you buy coffee, you want the right flavor. Similarly, knowing the different type of coffees available for investment is important. Now, the global coffee production is made up of two types of beans:

1) Arabica coffee is the most widely grown coffee plants in the world. Over 60% of the coffee production is Arabica. Arabica is grown in countries as diverse as Brazil and Indonesia. It is the premier coffee and thus the more expensive variety. It also serves as the benchmark for coffee prices in the world. 2) Robusta accounts for 40% of the global coffee production. It is easier to grow than the Arabica and thus less expensive.

By the way the coffee futures contract traded on NYBOT are based on pure Arabica Coffee. Now coffee is a serious business and you can profit from the coffee craze like the Starbucks that has taken hold of the United States and is spreading rapidly in Europe and part of the developing world like China and India.

Know this shocking Dow Futures never lose trade secret that can make you rich. Get these three FREE investing reports and discover a Stock Trading Course that can make you rich. Learn Commodity Trading! Many day traders trade stock index futures like the Dow Futures, S&P Futures or the NASDAQ Futures. If you are thinking about day trading than you should give trading stock index futures like Dow Futures. Many people day trade Dow Futures successfully. These stock index futures contracts are based on the underlying stock index. For example, Dow Futures is based on the famous Dow Jones Industrial Average (DJIA) Index called in short the Dow Index. If you go on the CNBC, Bloomberg or Wall Street websites, you will find the Dow Index quoted. Dow Index is considered to be an important barometer of market sentiment at the New York Stock Exchange (NYSE). If the Dow Index goes up, the market is considered to be bullish and if it goes down, the market is thought to be turning bearish. Everyday, you will find market analysts talking about the Dow Index going up or down on CNBC and Bloomberg channels. Dow futures contracts are based on this famous Dow Jones Index.

Now, almost all the stock exchanges have a stock index related to each one of them. Trading stock index futures contracts have become popular with the day traders in the last decade. This way a trader can trade against the market instead of trading a single stock or a few stocks. Stock indexes mirror the market sentiment and a trader by trading these stock index futures contracts can profit from the volatility in the stock market.

Now, futures contracts have one more advantage as compared to stocks, no uptick rule applies on futures contracts. So when you trade Dow Futures or for that matter any other futures contract, you can go short as easily as you can go long. Now suppose the Dow Index is going down, you can easily profit by going short on Dow futures as compared to stocks that need an uptick before you can go short. Infact, there are a number of stocks that cannot be shorted so you can’t do anything about it. This makes futures trading far more profitable as compared to stock tradng. Of course, there is an inherent risk in trading futures. Futures market is highly volatile and an inexperienced trader can get wiped out in minutes.

Now, Dow Futures are traded on Chicago Board of Trade (CBOT). Each point on the Dow Index is multiplied by $10 to find the market price of the Dow Futures contract. So if the Dow Index is at 9000 points, the market value of the Dow Futures contract will be $90,000. Many retail traders are unable to afford this much amount to purchase a single contract.

CBOT in late 1990s introduced a smaller version of Dow Futures contracg with the name of Dow E-Mini. The value of this smaller futures contract is calculated by multiplying the Dow Index points with $5. So, in our case, the value of Dow E-Mini will be $45,000 when the Dow Index is at 9,000 points. This makes these smaller dow futures more affordable to day traders.

Dow futures and most other futures contract get traded electronically on the GLOBEX platform. There are futures contracts on S&P 500 Index as well as NASDAQ Stock Index as well. Many day traders trade all three of them. Some interesting happens almost every few days for many years to the Dow Index futures. If you know this hidden secret that is not known to many, you can make incredible profits. The best method to trade Dow Index is to trade Dow Futures. Don’t miss to know this Dow Futures never lose trade secret!

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