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The Truth Behind Futures Trading
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More and more traders are opting to enter the futures trading market because of the possibility of high rewards. And this is true, because futures trading does have a lot to offer compared to other trading schemes.
However, the lure of big returns often overshadows the risks and realities linked with this type of trade. It is for this reason that a lot of traders fall into major losses -- because they focused too much on the good to try to overcome and get around the bad.
There are two basic truths to futures trading. One is that market movements are very difficult to predict and monitor and the other is that losing is a natural part of the game. If you don't get these two into your head at the onset of your trading frenzy, then you might encounter shock when twists of fate happen.
Realize that trading futures is not a set and perfect deal. There ARE risks involved, as well as pitfalls. Getting yourself prepped from the very start will make the pain of losing money easier to bear and will allow you to make intelligent guesses as to where the market is headed next.
Market turns are sporadic and impossible to accurately forecast
There are many analysts and experts in the financial market that offer guidances or outlooks based on different market movements. This practice has become so prevalent that traders often mistake these forecasts as truths and anchor their decisions on them.
This is where the problem lies. The truth is that markets' future actions can never be predicted, because something, somewhere is bound to happen at the very last minute and turn everything around and upside down.
Some traders trade futures carefully, fully knowing that a problem could arise at intermittent times. However, there are some that move on hope. They 'hope' that what the 'experts' predict will become reality and force themselves to hold on, even when alarm bells are already ringing in their ear.
When you really think about it, has there ever been a time in person's life, not just his financial business, where a future occurence has been predicted with ease and accuracy? There has been none. And this goes out also to futures trading.
Losing is part of the game
While futures trading holds the promise of a massive win, it can also spiral you down to a major loss. As with any risky business, there are winners and there are losers.
Sometimes you're up and sometimes you're down. This is a reality that you have to deal with before you step into the world of futures trading. If you come in expecting to win all the time, then you're in the wrong system.
Futures trading is a gamble. While you will be able to make intelligent guesses as to whether the market will be moving in your favor or not, you will most definitely not be able to see what happens until it actually happens.
Once you are able to accept this fact, you will be able to concentrate on making trends depending on the trends you've noticed in the market. Because over the long haul, your knowledge of market movements, no matter how inaccurate, will still lord over having to depend on other people's predictions to determine your next move.
Commodity+trading News
Glencore commodity trading earnings slump in 2011 - Reuters
Glencore commodity trading earnings slump in 2011 Reuters L) lost money on agricultural commodities in 2011 by trading volatile cotton markets and saw the profitability of trading metals and oil remaining weak or declining, the commodities giant said on Tuesday. Glencore, which rivals Vitol for the position ... |
True Commodity Play 2/6/12 - NASDAQ
True Commodity Play 2/6/12 NASDAQ After speaking with several prospective commodity clients today I want investors to recognize that by trading etf's or buying stocks in a commodity sector you are not trading commodities. That being said commodity trading is not appropriate for most ... |
Glencore's Glasenberg Returns to Marc Rich Trading Roots With Xstrata Deal - Bloomberg
 Telegraph.co.uk | Glencore's Glasenberg Returns to Marc Rich Trading Roots With Xstrata Deal Bloomberg The question on many people's minds, though, is why one of the wealthiest, most powerful and most secretive players in the high-stakes commodities trading game would seemingly step aside and relinquish his CEO post at the very moment of his greatest ... A model that could reshape industry Glencore to Buy Full Control of Xstrata for $41 Billion Rich seam of risk in Xstrata tie-up plan |
Wall Street Groups Seek to Delay CFTC Position-Limits Rule - BusinessWeek
Wall Street Groups Seek to Delay CFTC Position-Limits Rule BusinessWeek 7 (Bloomberg) -- Two Wall Street groups asked a federal judge to delay a US Commodity Futures Trading Commission rule that limits commodity speculation, saying the regulation is already imposing “significant, irreversible costs. Wall Street Groups Seek to Delay Dodd-Frank CFTC Position-Limits Rule Groups ask court to block CFTC position limit rules CFTC Wants YOU to Register Your Mutual Fund |
Farmers Plan Biggest U.S. Crop Boost Since 1984, Led by Corn: Commodities - Bloomberg
 Bloomberg | Farmers Plan Biggest U.S. Crop Boost Since 1984, Led by Corn: Commodities Bloomberg Trading Commission Money managers have been betting on lower wheat prices since September, US Commodity Futures Trading Commission data show. They cut their bullish wagers on soybean and corn in two of the past three weeks. Floods, drought and freezes ... Commodities Corner: Volatile prices to persist Pre-Opening Corn Market Report for 2/7/2012 The Market Insider |
US GAS: Futures Decline As Investors Fear Weak Demand - Wall Street Journal
 National Post | US GAS: Futures Decline As Investors Fear Weak Demand Wall Street Journal The benchmark contract fell as low as $2.452 in earlier trading. Futures fell as investors questioned whether forecasts for colder weather across the Northeast US will dip low enough to substantially lower inventories of gas. Commodity Weather Group on ... Natural gas futures drop despite cold weather forecasts US GAS: Futures Rise On Forecasts For Cooler Weather |
Corn Falls; Crude Oil Declines; Gas Slides: Commodities at Close - Bloomberg
 Financial Times | Corn Falls; Crude Oil Declines; Gas Slides: Commodities at Close Bloomberg The Standard & Poor's GSCI gauge of 24 commodities fell 0.1 percent to 667.87 at 5:18 pm Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.4 percent to 1606.406 yesterday. CRUDE OIL Oil traded near a two-day low in New York on ... Crude oil futures impacted by geopolitical events Crude oil firms on U.S. supply data Crude Oil Gains $1.50 as Dollar Falls: Commodities at Close |
Glencore's 2011 Trading Earnings Slide on Cotton Plunge, Metals - BusinessWeek
Glencore's 2011 Trading Earnings Slide on Cotton Plunge, Metals BusinessWeek Adjusted Ebit from marketing fell to $1.91 billion from $2.34 billion, the world's largest publicly traded commodity supplier said today in a presentation. Its agricultural business posted an $8 million loss, compared with profit of $659 million a year ... |