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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
Price hike of essential commodities anticipated by traders and analysts - Economic Times
Price hike of essential commodities anticipated by traders and analysts Economic Times Already reeling under the stress of this week's petrol price hike, the steepest ever, consumers would now have to brace for a hefty rise in prices of essential commodities. Traders say prices of edible oils, pulses and spices - essentials in Indian ... |
Copper Traders Extend Bearish Streak as Prices Drop: Commodities - BusinessWeek
Copper Traders Extend Bearish Streak as Prices Drop: Commodities BusinessWeek Hedge funds and other money managers cut their wagers on higher prices by 69 percent in the week ended May 15, the most in a month, Commodity Futures Trading Commission data show. Raw materials slid to a five-month low this week and more than $4.3 ... |
Think commodity fundamentals look grim? Check out the charts - Reuters
Think commodity fundamentals look grim? Check out the charts Reuters As three of the largest and most active markets for commodity traders, these can set the trends that smaller markets like coffee and grains follow -- and all three markets are within a hair's breadth of those pivots. "The reason these levels are ... |
Hedge funds bet wrong on wheat, right on copper - Reuters
Hedge funds bet wrong on wheat, right on copper Reuters In copper, fund managers dumped nearly $670 million worth of long positions just before the metal suffered its sharpest price drop in over a week, the data from the Commodity Futures Trading Commission showed. In both cases, the commodities were driven ... |
CFTC Charges Two California Men In Fraudulent Sales Of Trading Systems - Wall Street Journal
CFTC Charges Two California Men In Fraudulent Sales Of Trading Systems Wall Street Journal The US Commodity Futures Trading Commission said it charged two California men for fraudulent sales practices involving two automated trading systems, known as the Boomer and Victory Trading Systems. The defendants are Stephen Craig Symons of Corona ... |
Chicago commodities trader charged in $8M Ponzi scheme - Chicago Tribune
 Futures Magazine | Chicago commodities trader charged in $8M Ponzi scheme Chicago Tribune ... allegedly operating a Ponzi scheme, soliciting nearly $8 million from investors, lying to them about his investing success and using some of their money to support his own "lavish lifestyle," according to the Commodity Futures Trading Commission. Feds: Trader used investor funds for to pay for 'lavish lifestyle' CFTC charges Chicagoan with $7.8M commodity fraud CFTC probing 2011 cotton market ructions: FT |
USDA Reviews Release Time for Reports as Trading Expands - Bloomberg
 Farm Futures | USDA Reviews Release Time for Reports as Trading Expands Bloomberg The US Department of Agriculture said it is reviewing the release time of its major crop and livestock reports after commodity exchanges expanded their trading hours. The National Agricultural Statistics Service and the World Agricultural Outlook Board ... CME Group to Expand CBOT Grain and Oilseed Open Out-Cry Trading Hours During ... Some frayed nerves as USDA grains data goes 'live' CME Group Alters Hours…Again |
Speculators Pile Up Largest Net Bets For Dollar, Vs Euro Since 2007 - Wall Street Journal
Speculators Pile Up Largest Net Bets For Dollar, Vs Euro Since 2007 Wall Street Journal The bets represented the largest net positions wagering on the euro's fall and the dollar's gain since at least 2007, according to the Commodity Futures Trading Commission's weekly report on the commitments of traders. The Chicago Mercantile Exchange's ... |