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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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TRADING TIPS FOR BEGINNING
FUTURES AND OPTIONS TRADERS
Trading futures and options, like most things in life, is a learning
process. As you trade, you will gain hands-on experience of the factors
that drive markets, the nature of price volatility, and how you react
to various situations such as losing money, or making money. This
knowledge, in turn, can help make you a better trader. While there is
no substitute for actual trading experience, the following trading tips
will help your initial trading experience be a positive one.
Watch
Before You Trade
Once you have identified a market that you wish to trade, spend some
time watching prices before you establish a position. By watching
prices, you will get an idea of the typical volatility of the market
which gives you an indication of the cost of trading that market. The
more volatile the market, the more expensive it is to trade. Be sure to
check that the initial and maintenance margin requirements will still
leave you with sufficient excess margin in your trading account.
(Margin requirements are higher for more volatile markets.) Also check
the contract specifications to determine the trading hours of the
contract, the contract months, and the last day of trading. For
instance, if the nearby contract stops trading in one week, it may be
better to enter a position into the next active contract month so as to
avoid the commission of a contract roll.
Start
Small
When you decide to enter a futures or options position, there is no
shame in starting small, for example, trading just one contract. In
fact, most traders, not counting the large CTAs or funds, tend to trade
only one or two contracts at a time. As you accumulate trading
experience, you can always increase your trading activity when
appropriate.
Use Stop Orders
Stop orders are used to limit loss on a futures position. It is a good
idea to establish a stop price that caps maximum tolerated loss on a
futures position the moment that you decide to initiate it, and call in
your stop order to the futures order desk every day as necessary. (Stop
orders are day orders and expire at the end of every day.) Don't wait
to set a stop later as your best judgement may falter if you start to
lose money and you consequently may talk yourself into accepting more
loss than what you should have tolerated. The proper use of stop orders
can protect your trading capital which, in turn, protects your peace of
mind.
Buy
Options
As a beginning futures trader, you may want to consider trading in only
one way: buying options. If you think prices will rally, buy call
options, and if you think prices will decline, buy put options. The
great advantage of limiting yourself to only buying options is that you
are always protected from a risk management viewpoint. The most you can
lose is the premium paid for the options (and the associated commission
charges).
Don't
Over Monitor
In the "old days", most futures investors based their trading decisions
on prices read from the business section of a major newspaper. Even
though they were one day old, they were still sufficient to enable many
traders to accumulate substantial wealth. With futures and options
prices available on the Internet, these days, almost any investor can
get a steady stream of prices throughout the trading day. While timely
information is certainly a good thing, beginning traders must be
careful not to over monitor the market. Being glued to the computer
screen to watch prices all day can make you "jumpy", with the
consequence that you may react prematurely - or poorly - to price
movements.
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TRADING
EDUCATION
FREE VIDEOS from INO TV!
Click
Here |
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Buying
Options on Futures Contracts
Although
futures
contracts have been traded on U.S. exchanges since 1865, options on
futures contracts were not introduced until 1982. Today, options on
futures contracts offer a wide and diverse range of potentially
attractive investment opportunities. This booklet is designed to
provide you with a basic understanding of options on futures contracts
- what they are, how they work and the opportunities and risks involved
in trading them.
Options on Futures
With
options on futures,
traders can construct strategies that profit in advancing, declining or
even stable markets, while at the same time reducing risk and
increasing leverage. However, before you incorporate options into your
trading and risk management decisions, you should thoroughly
investigate the risks, nomenclature and strategic uses of these
instruments. The more background you have in options, the more likely
you will be able to take full advantage of these powerful financial
instruments.
Futures & Options Strategy Guide
With the
many futures
and options strategies available to the trader, it is sometimes hard to
keep track of them all. This 49-page Strategy Guide illustrates 21
trading strategies in an easy-to-analyse, graphical format. It starts
with basic, simple strategies and progresses to more sophisticated
option-related strategies like butterfly spreads, ratio spreads and
box/conversions. It cross-references each strategy with market
sentiment, whether bullish, bearish, or neutral and with volatility,
whether rising or falling. For each trade, it details the break-even
point, risk and potential gain at expiration as well as "things to
watch" along the way. This Guide is a great reference for any trader.
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