Having a strategy for when
and how to take profits on futures
trades is one of the more important aspects of the business of trading. New commodity traders are often conflicted
with the emotions of fear and greed.
Fear will often cause traders to take profits too early and greed often
causes traders to stay in a trade too long and give...
The lean hog market has frustrated some traders this year
and made the year for other traders. It is all about how to read the market
properly. Granted, the livestock markets are not always easy to read in my
opinion, but they offer some good trading opportunities. The underlying story
here is that China lost a large portion of the pork...
One of the biggest mistakes new commodity traders make is
having unrealistic expectations before they place their first trade. The
commodity markets are highly leveraged investments, which increase profits for
disciplined traders and rapidly drain the accounts of reckless traders.
Commodities can have leverage near 20 to 1, which means a
trader will only have to put...
Notional funding is simply an agreement a client has with a
Commodity Trading Advisor (CTA) to trade his or her managed futures account at
a level beyond the amount of cash deposited. The amount above the cash
deposited to the adjusted trading level is called notional funds. For example, an investor could open a managed
futures account with $200,000 in cash...
If you are expecting the gold market to hit record highs
again, it could be a better strategy to use a spread trade that consists of buying
silver and shorting gold. This may go contrary to logical thought, but it has
to do with silver outperforming gold historically in the acceleration phase
toward record highs.
Another Bull Market
in...
