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Charts
that
talk can help improve your trading
If
you’re short on time, but still need
to know exactly what the chart is saying, I recommend you watch the
video below on a new Talking Chart system.
A
patent is pending on this technology and the
users of the Talking Charts have flooded the company with emails and
phone calls of praise. The technology reads and analyzes the details of
the chart, then dictates the analysis right to you. As an added bonus
you’ll hear from 3 different HUMAN voices! No robots here.
Just great chart analysis to go along with very powerful charts.
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FREQUENTLY ASKED QUESTIONS
What is
the biggest mistake made by futures traders?
The biggest mistake that most traders make, especially new traders, is
trading too much with too little capital. There are sound mathematical
reasons to expect such trading activity to ultimately result in loss
and, in fact, this has been confirmed by numerous reports and surveys
within the industry: most traders starting out with $5,000 or less tend
to lose their money within the first six months of trading. The key to
successful trading is to gauge your trading activity based upon your
capital, and allow plenty of cushion in the form of excess margin for
unexpected price movements.
Is it possible to make
really big profits trading futures?
Yes, it is, but keep this in mind. There is a relationship between risk
and return that has shown to hold over time, namely, that higher
returns are often associated with higher risk. So while it is possible
to make big profits trading futures, the trader is also exposed to
considerable risk - risk of losing money. Beginning traders are
probably better off "lowering their sights" a little and, consequently,
playing it more safe.
What
exactly is leverage?
Leverage is a measure of the market value of your futures position
relative to the amount of your trading capital. The greater the degree
of leverage, the more futures value you control relative to your
capital. Futures contracts, in themselves, are highly leveraged
instruments: a little bit of money controls a lot of futures value. For
example, some futures can be bought or sold for as little as two
percent of the market value of the futures required as margin. It is
leverage that enables tremendous profit or loss to be made relative to
your trading capital. High-leveraged trading implies that you are using
almost all of your available capital to meet margin requirements, and
entails considerable risk as it can result in significant gains or
significant losses. Low-leverage trading implies that you have plenty
of excess capital in your account to cover unexpected price movements,
and is consequently less risky. Properly controlling leverage is a
necessary requisite to trading futures successfully.
How can
you sell futures if you don't already own them?
One of the greatest advantages of futures contracts is that you can
sell them without first owning them. The reason that this is possible
is because futures represent an agreement to buy or sell something at
some time in the future. Because it represents a deferred transaction,
futures can be sold just as easily as they can be bought. There is no
difference at all between buying and selling from a trading
perspective. Thus, a futures trader who expects prices to fall can sell
futures now and hopefully buy them back later at a cheaper price, and
make a profit.
Will I
get a truck load of soybeans dumped in my yard?
When a futures contract expires, the seller must deliver to the buyer
whatever commodity is represented by the futures, such as corn, beans,
or live cattle. This is ideal for farmers who use futures to sell their
crop, but a problem for traders who neither wish nor are capable of
physical delivery. Fortunately, there is any easy way to handle this.
The futures trader only needs to offset their position prior to
contract expiration. For example, traders who are long beans must sell
all of their bean contracts prior to expiration. Similarly, a short
futures position is offset by buying back futures. Once offset, there
is no longer any obligation outstanding and the trader need not worry
over having a truck load of soybeans dumped in their yard.
Where
are futures traded and where can I get prices?
Futures are traded only on designated futures exchanges, and in pits
allocated specifically to that particular futures. You can be anywhere
on the planet when you decide to buy or sell a futures, but to be
executed, your order must get to the pit. That is the job of the
broker. You call your broker with your futures order, and they relay it
to the pit where it is executed. By law, futures orders cannot be
executed outside of the pit. (Some exchanges also use automated trading
facilities or computer networks which serve as trading pits.)
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TRADING
EDUCATION
FREE VIDEOS from INO TV!
Click
Here |
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Did you know?....
One of the
reasons why
futures were created was so that the retail trader could participate in
exciting commodities, some of which have made incredible gains, like
the stock market indices, the grains, gold, oil, and even orange juice.
Others are doing it...
Some are
dentists,
others teachers, still others are construction workers or stay-at-home
moms or dads. Some have university degrees while others, only a
high-school diploma.
Why learn about commodities?...
Because the
commodity
markets hold tremendous opportunity for profit. But there is also
significant risk of loss. Beginners must educate themselves and
determine if commodity trading is suitable for them.
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