It's difficult to provide accurate trading commodities and financial futures information, but we have gone through the rigor of putting together as much futures and commodities related information as possible. Even if you are searching for other information somehow related to commodity daily prices, commodity news, market futures or future broker this article should help a great deal.
The commodity futures and options market is a probability-numbers game. Do not expect it to do anything except move around. Your edge either works this time or it does not. There's nothing awful about having a losing options or futures trade. It is just the price that you pay to find out if your set up ( pattern or edge ) is going to work this time or not.
Entering a commodity market correctly keeps the risk of loss tiny when wrong. Exiting a market properly gives you the maximum profit when right. If we can keep the times we are not right to tiny losses, we have won half of the battle. Here is a classic entry system that may be applied across all time frames.
The other most critical thing I learned is that most new and green commodity futures traders lose and blow out their accounts. It's simply a matter of time before the commissions, bad research, ego generated mistakes, order mistakes, over-trading and the rest can lower the account to nothing. I realized this when the auditor was shocked that I was really earning profits with Max. Later I found this to be in actuality. The statistical data in stock trading are not different. Future's trading isn't unique in that sense.
Don't forget that even if your immediate trading commodities and financial futures quest isn't answered in this article, you could even take it further by doing a search on to get specific trading commodities and financial futures information.
Most commodity futures markets will tip their hand when it is time to reverse direction. Understanding how to read its language is the challenge. It isn't straightforward. This is vital info, since this is all you actually need to know! Volatility is a clue as well as price synchronization. Read on about these unique findings. This information can be applied to most any swiftly traded market of any time scale.
You need to plan, survive and be in a position to trade another day too. Work out a Money Management Trading Plan which is going to let you trade like a pissed sailor for brief periods and still stay intact. Because everybody trades poorly from time to time, whatever how hard we try seriously not to. Demand that your commodity broker describe his account survival plan to you. And do not accept the answer, well, you can always send in additional cash if we risk everything now. That would be a cop out. We must work with whatever account balance we have. Use only money you're able to afford to lose. This keeps you thinking more clear too.
There are a number of standard hazards changed return measurements, the most popular of which being the Sharpe ratio. The Sharpe Proportion compares the return relative to the base volatility in the investment. While basically we are in complete agreement with the Sharpe Proportion's logic, we feel it has one significant issue. The flaw is that the Sharpe proportion only points of view past volatility and makes no effort to attempt to outlook future volatility. As a effect, we feel the Sharpe proportion doesn't give an OK view of the likely risks involved in a program.
It might interest you to know that lots of folks searching for trading commodities and financial futures also got information related to other equity futures, chicago board of trade, and even commodity day trading here with ease.
Posted by financeforyu
at 4:05 AM EST
Updated: Friday, 5 February 2010 2:47 AM EST