The power of the media to lead public opinion has been demonstrated time and again. While the fourth estate would argue that they are merely reporting the news, they do, in fact, manipulate — and to a certain extent create — the news, particularly with regard to the economy and the markets. The market is a reflection (some would say, prediction) of national and world economy. In part, market movement is driven by the emotions of people, their confidence or fear, satisfaction or greed.
Futures Traders Can Use Media Hype To Their Advantage
October 6, 2007 By
The media, particularly television, has a profound effect on the development of public consensus which can drive movement in the markets. People believe what they hear in the news, particularly on television. The prognostications of television economists and financial experts bombard the public, molding public opinion and forming consensus. The problem is that the views of only a small number of people are aired, but aired repetitively, lifting their judgments from the realm of personal opinion to widely accepted fact. The savvy futures trader can make use of this phenomenon.
Futures Traders Can Increase Profits By Trading Options
October 4, 2007 By
In 1982 the futures markets started trading options. The appeal of trading options as opposed to futures is the potential to increase profit — often substantially — while limiting risk.
What is an option on a future? An option gives the buyer the right but does not obligate him to buy or sell a particular futures contract at a set price at any time prior to a specific date. When the option is exercised, it is the actual futures contract that is delivered to settle the transaction, not cash.
In Futures Trading, What Is The Spread?
October 1, 2007 By
You can profit in futures trading when you understand what the spread is and how to make it work for you. An arbitrage technique, the spread is the purchase of one futures contract and the simultaneous sale of a different but related futures contract. The goal of the futures trader is to make money on the change in the price difference between the two contracts.
