Futures trading is a risky business. The untrained, unwary, unknowledgeable, undisciplined or sometimes plain unlucky can lose a fortune — and in an agonizingly short time. In fact, the SEC requires futures trading websites to post a disclaimer concerning the potential risks involved in trading commodity futures. You’ll find a full disclosure statement on my Futures Trading Secrets website.
How To Use Stop Losses In Futures Trading
November 25, 2008 By
Futures traders use stop losses to minimize financial risk and prevent unexpected catastrophe. A stop loss is like an insurance policy. As the name implies, its purpose is to stop losses. A powerful money management tool, stop losses allow the savvy futures trader to manage his losses, to keep them small and contained. Properly applied stop losses can mean the difference between success and failure for futures traders.
A Little Commodities History For Futures Traders
August 15, 2008 By
Commodities are the raw materials of our world, the natural resources we use to build the things we need and use. Throughout human history, man has exploited our world’s natural resources to improve the quality of human life. Futures traders trade principally in commodities (and in currencies, though that’s not the topic of today’s post). Futures markets allow commercial users to mitigate the risk of fluctuating commodity prices and provide a means for futures traders and investors to profit from those price risks. If you’re going to trade in commodities, you should know a little about them both practically and historically.Our global economy is built on three basic types of commodities, the principal players in the futures market: [Read more…]
How The Business Cycle Affects Commodities And Futures Traders
July 30, 2008 By
Commodities, like the market, are cyclical in nature, rising and falling according to the current business cycle. Like other market vehicles, commodities are influenced by economic forces. However, unlike other market vehicles, futures traders can trade commodities profitably even in bad times.
