Archive for July, 2010

Commodity Markets Ignore Fundamentals

AgWebSara asked:


A stronger dollar and weaker Euro, lower oil prices, and good growing conditions in the Midwest should add up to push grain markets lower…but it’s not. Mark Gold offers his take on the action in Chicago.



There are more futures trading strategy programs on the market today than ever. These are programs which handle the analytical side of investing and tell you exactly where and when to invest in what so that you can simply invest accordingly. With every program claiming to turn you into a rich individual overnight, however, it pays to understand how to differentiate the overly hyped programs from the worthwhile. Consider this guide to picking out the best futures trading strategy program.

A money back guarantee will take you a very long way in differentiating the scammy and overly hyped futures trading strategy software from the worthwhile ones. This also allows you to try the program first hand which is as simple as getting it, receiving the first of its picks, and subsequently following their performances along in the real time market.

Secondly, you should make sure that the stock program which you go with has good customer support as not only is this important if you ever have any issues with the program, but it is also a good sign if the publisher respects your opinion of them enough to get back to you in a timely and effective fashion. If they don’t offer phone support you might consider sending them a test e-mail and seeing how long til they respond if they do at all.

Finally, consult outside review sites to learn every detail about a futures trading strategy program which the publisher doesn’t want you to know or which you simply can’t learn from their sales page. Often times the best and worst programs all have a wealth of information about them if you do the slightest amount of digging.

By: Jonathan Langley

About the Author:
Even if you’re fresh off the boat when it comes to stock investing or you don’t have the time to devote to it, if you’re ready to realize your financial independence I highly suggest you give one of the best futures trading strategy programs out there a chance. I’ve compiled a review site to share my experiences and reviews on the best systems I’ve used which you can visit by clicking on this link for futures trading strategy.

pfloydie asked:


I like to follow the metals, such as Copper, Aluminum, Platinum etc. . . .I am thinking of trading on the commodities market. . . .However they stopped printing them in my local paper (they did it every day, then it went to once a week — then I had to buy the Wall Street Journal – Now they don’t put the commodities in there. . . .
On the web they all want an astronomical amount of $$ in order to view the trends. . .
Any help would be greatly appreciated. . .if it matters, I am in New York, USA
Please don’t tell me how much $$ I should be making and how to invest.
Thank you.
It is totally irrelevant to my particular question. . .

Know Any Decent Currency Traders?

Aspire asked:


Does anyone know of any decent currency and/or commodity traders with a proven track record? Is currency trading as profitable as all the “SPAM” flying around purports it to be?

Globalization, Free Trade, and Fair Trade?

VivaaLaSam asked:


Can someone explain it to me? I have definitions of them….I just don’t know what they are…I have to do a paper over it for Philosophy class.

I. Definition:
1. Globalization: to extend to other or all parts of the globe; make worldwide: efforts to globalize the auto industry. < http://dictionary.reference.com/browse/globalization >
2. Globalization: make something become adopted globally: to become adopted on a global scale, or cause something, especially social institutions.
< http://encarta.msn.com/dictionary_/globalization.html >
3. Globalization: the increase of trade around the world, especially by large companies producing and trading goods in many different countries
< http://dictionary.cambridge.org/define.asp?key=33185&dict=CALD >

1. Fair Trade: for sale at a price no less than that specified by formal or contractual agreement with the manufacturer.
< http://www.wordsmyth.net/live/home.php?script=search&matchent=fair-trade&matchtype=exact >
2. Fair Trade: trade that satisfies certain criteria on the supply chain of the goods involved, usually including fair payment for producers; often with other social and environmental considerations; trade done legally.
< http://www.freedictionary.org/?Query=fair%20trade >
3. Fair Trade: to market (a commodity) in compliance with the provisions of a fair-trade agreement. < http://research.lawyers.com/glossary/fair-trade.html >

1. Free Trade: international trade left to its natural course without tariffs, quotas, or other restrictions. < http://www.askoxford.com/concise_oed/freetrade?view=uk >
2. Free Trade: situation in which there are no artificial barriers to trade, such as tariffs and NTB’s. Usually used, often only implicitly, with frictionless trade, so that it implies that there are no barriers to trade of any kind. For a traded homogeneous product, it follows that domestic and world price must be equal.
< http://www-personal.umich.edu/~alandear/glossary/f.html#FreeTrade >
3. Free Trade: international trade free of government interference.
< http://lookwayup.com/lwu.exe/lwu/d?s=f&w=free_trade >

II. Globalization, Free Trade, and Fair Trade to Philosophy:

III. How this relates to me:
a) Past
b) Present
c) Future

IV. Globalization, Free Trade, and Fair Trade to this class:

V. How does this relate to the world:
a) Past
b) Present
c) Future
Hahaha Jenny B! Where do you sit??
LOL I didn’t do it, bc I didn’t get it.
don’t tell the teacher I posted it!
man I thought someone might see it.
ha

Commodity Spread Trading Explained



If you’ve tried trading futures trading, many of the conservative techniques explained show you how to trade with the trend. Another aspect of conservative commodity trading, is commodity spread trading.

In order to delve into commodity spread trading, you need to understand the basics of trading futures without spreads. Let’s take a look at how this is done and understood by the commodity trading community.

The basis of trading straight futures is to profit either from the market moving higher or lower depending on the initial position that you entered. If your purpose was to buy or go long a certain futures contract, your directional bias would be up. If your purpose was to initiate a position that you foreseen the markets moving lower, than your directional bias for market pricing would be to move lower.

Without confusing the new trader, let’s just stick to the terms long and short. If you are long, than the directional bias is for the market to move higher in price from one’s entry point. If you are short than the directional bias is for the market to lower in price from one’s entry point.

Commodities also trade in different contract months, years and exchanges which allows the savvy commodity spread trader to take advantage of price disparities between these platforms to allow to make money in a conservative manner.

The commodity spread trader does not make money with a specific directional bias as pointed out in the explanations above, but makes money from the difference between two commodity contracts from either a different month, a different year or a different exchange.

For instance, July 2009 Corn could be trading at 2.02 cents per bushel and the Dec. 2009 Corn contract could be trading at 2.30 cents a bushel. I could utilize the difference in prices of these two contract months and profit if that price disparity widens.

Why are two same commodities priced differently?

Well, if the current month was March of 2009, the July contract would be closer to expiration and would than go to market based on the ending price of that contract, while the Dec. 2009 contract has many months to go.

In that time, there could be floods, storms, droughts, and over abundance or an under abundance of corn in the coming months. Also since delivery is further out in comparison from the July Corn contract, there is an added premium of storage that is involved with contracts set to expire further out.

Another analysis a commodity spread investor may take into consideration is seasonal adjustments. July Corn typically rises as the contract comes to expiration while Dec. corn typically falls as it gets closer to expiration.

Taking the seasonal price movement in these seasonally adjusted commodities, you can profit by taking the spread of the two commodity contracts and profit from it. Many savvy, patient and calculated spread traders wait for ideal situations that the market presents and then takes advantage of these disparities.

There are many spreads that you can look for in different commodities such as crude oil, soybeans cattle and currencies. In fact, the Forex marketplace is probably one of the more well known spread trading markets in the world as Forex gains in popularity.

If you look at currency pairs, you will see the price is a reflection of the difference from two different world currencies that create a new price for the Forex market. To prove that, take a look at the Japanese Yen, the U.S. Dollar, the British Pound and see how they trade individually on the CME exchange and than compare the prices it sets in the in the Forex marketplace. Prices are different because in the Forex marketplace prices are represented by the spread between two world currencies.

In closing, at first blush, it would seem that commodity spread trading takes more time for trades to develop, is more complex in structure and takes more time to understand the metrics on how you can profit trading futures spreads. But if you can have patience and study how pricing differentiates from different futures trading contracts in different months, years and exchanges, you can create steady, long lasting profits by trading spreads using futures and commodities traded contracts.

By: Beau Penaranda

About the Author:
Beau Penaranda has been trading commodities and futures for close to 20 years. He helps new commodity traders learn how to trade futures by offering free information concerning futures trading, futures on options trading and trading commodity spreads.

bionicturtledotcom asked:


Contango and backwardation are about the relationship between the spot and forward price. If Forward is greater than Spot, it’s contango (upward sloping forward curve). If Forward is less than Spot, it’s backwardation (inverted forward curve). The “normal” prefix refers to relationship to expected future spot price and is harder to figure.

abhishek p asked:


i have done my MBA with minor-finance. do i have any chances of getting job in this feild?
cantosTV asked:


While austerity measures and bailouts might yet park a turnaround for commodities, James Hughes at CMC Markets warns the markets are still weighed down by uncertainty and advises keeping a close watch on a looming moving averages death cross.



In the current investment market, where tried and true stocks are faltering, now may be the time to expand your portfolio to include online future trading and future option trading.

Futures Trading?

Futures trading is essentially trading on the predicted worth of a commodity at a determined date. A futures contract is an agreement between two parties to buy or sell a certain amount of a commodity at a pre-determined price. In most such contracts, the deal is predicated upon the expectation that actual delivery of the commodity will take place in order to satisfy the terms of the contract.

Some futures contracts, however, ask for a cash settlement instead of delivery of the actual commodity, and these contracts are usually liquidated before the agreed upon delivery date in the contracts.

What is great about this type of trading trading is that it’s based on tangible objects and thus, the value of futures is set more on reality-based events than stock trading, which fluctuates on more intangible properties, such as the moods and emotions of investors.

Trading Futures Is Easy!

It has become incredibly easy thanks to the easy access offered by the internet and online future trading. Day trading over the Internet can be a tricky business, however, and there’s not a lot of margin for error for newbies. To get the best results from day trading futures, future option trading and stock market futures online, you need to find a site that can offer dependable advice from proven experts about the amazing opportunities offered by the online futures market.

When picking a trading site or a site offering tips on futures trading you need to consider how well the site fits your needs as an investor, the credibility of the information being presented and the user-friendliness of the site or the advice.

A good trading site offers a variety of easy-to-use, simple options for both long term trading and day trading futures. Money never sleeps and neither should your site, so good technical support and fail-safe infrastructure is a must. Because futures trading can be very confusing to the novice trader, it’s important to use a site that offers a quick reference for users or to have access to a good online tipsheet or newsletter.

Credibility is important in stock trading, so it is important that the site you turn to for advice is affiliated with real experts who have a proven track record in successful future option trading and in trading stock market futures as well.

The boom times may be over, but there is money to be made in the current economy by trading futures. With the right advice and a reliable Web platform, you can earn incredible gains in the futures trading market.

By: Daniel Webb

About the Author:
Check out my blog for information, discussions, tips and advices on stock, forex, futures and options trading: http://www.savvyfinancialtraders.com

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