Day Trading Futures

January 30, 2010 · Posted in commodity trading · Comment 

When day trading futures, you enter and exit all positions in the same day – never carrying a position overnight. Since the overnight moves of the market are difficult to predict, many traders avoid risk by day trading. Ironically, the public believes that day trading is the riskiest way to trade.

THIS IS A MYTH!

Some traders day trading futures, make 1 to 3 trades per day, trying to catch the major intraday moves. Others trade in-and-out very frequently, trying to scalp a small profit on each trade. (My style uses a unique blend of these two strategies.)

For those day trading futures, the Emini Stock Index Futures have become the most popular day trading vehicle because of their liquidity, leverage, and the ease of trading them online. You can go short or long with equal ease unlike stocks where its easier to go long than short due to the up tick rule.

The time relationship of the eminis (and the big contracts) to the cash indices is important to understand. Lets start from square one.

The S&P 500 stock index (the cash index, symbol SPX) is central to day trading futures. It has an Exchange Traded Fund (the Spyders, symbol SPY) that trades like a stock, but without the up tick rule. The price of the S&P 500 cash index moves up and down with the 500 stocks that make up the index. The SPYders follow the S&P 500 cash index very closely. You can trade Exchange Traded Funds such as the SPY (and QQQQ for the Nasdaq 100) online from home. But for day traders, they are not as favorable as day trading futures.

The concept of futures is a little confusing, but it boils down to this: the financial industry has turned the S&P 500 cash index into a contract that trades like a stock. The contract (or futures contract) has a price that goes up and down from one moment to the next. It has a chart that looks just like stock chart, and you can make money with it by buying low and selling high, or vice versa. Thats a complicated as it needs to be for now.

The big contracts or SP Maxis were invented first and theyre still around. With the big contracts, a lot of money changes hands. When the price of the SP Maxis moves one point, $250 per contract moves with it. The SP Maxi contracts trade in a literal pit where the traders, called locals, shout at each other, buying and selling for everyone who wants a piece of the action.

The locals are not public servants, of course, they make money for their own accounts. They have the advantage of being able to read each others body language and the tone of the other traders voices. They see what the strongest traders in the pit are doing. They have several other advantages too, their costs per trade are tiny compared to the publics commissions.

The locals arent born as professional traders though, they learn to trade like everyone else, except they have a huge advantage in learning as well because they learn to scalp first! Their instant access and low commissions make this possible compared to others, but those day trading futures online can take advantage of scalping trades as well.

Scalping is basically limiting your losses to only one or two ticks while taking any profit you get as you get it. Its easier than going for several points per trade, Ive been using this strategy day trading futures with much success.

Locals also use the spread (the difference between the bid and ask price), to grab quick profits from orders that come in on either side of the market. This makes scalping easier for them.

In the past, all these advantages made it impossible for a retail day trader to be a successful scalper. It was insane to try. And to this day many traders have the idea that scalping is too difficult for the public because you have to compete against traders with an unfair advantage.

But all that has changed now. If you follow some simple, yet important guidelines then you too can be successful scalping and day trading futures online.

They took the concept of the Maxi futures contracts and came up with smaller contracts (the eminis) that move $50.00 per SP point instead of $250.00. This allows all traders, big and small, to trade the stock index futures.

But even more radically, they set it up so that the smaller contracts (the eminis) are traded only through computers. This was revolutionary, they bypassed the pit, taking away the advantage of the locals, and leveling the playing field in a way that has never been done before. And to level the field even more, retail commission costs fell like a rock. Today, any trader day trading futures with a small account can pay $4.80 per round turn (entering and exiting a trade).

This means that scalping is open to the day trading public for the first time in history. But most people who are day trading futures dont even realize where the new advantage really is.

Scalping is one of the keys to making a living day trading futures as I do, because I follow a simple rule: “Every trade starts out as a scalp until proven otherwise” .

The SP emini futures became more and more popular and more liquid, breaking a lot of records along the way.

The SP Maxis futures and the SP emini futures are both derived from the S&P 500 index (symbol SPX), which, as I said, has an ETF that trades like a stock (symbol SPY).

So the question is – which of these is the leader and which are followers?

Today the emini futures track the Maxi contracts almost tick for tick, with the eminis beginning to lead the Maxis at times, and also overshooting the Maxis at emotional extremes, such as the at the top of an intraday rally.

Both the SP eminis and the SP Maxis (the futures) lead the S&P 500 cash index by a variable amount of time, often in the range of a fraction of a second. Some people call this the tail wagging the dog, because the futures are derivatives of the stock indices, but call it what you want, the futures are leading the way.

The fact that the futures lead the markets makes their chart patterns more pure and reliable for support and resistance trading. This makes a huge difference to me.

I use the stock index futures (the eminis and Maxis) for calculating daily support and resistance areas, which are the basis of my own trading style a style of trading that has paid my bills and built my financial security for about 20 years now.

Author: Mike Reed
Article Source: EzineArticles.com
Provided by: Beading Necklace

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The Futures Markets

January 27, 2010 · Posted in commodity trading · Comment 

One hallmark of a free market system is risk. Most producers (as well as consumers) face the risk that prices of goods (or commodities) they produce will change between the time they invest their resources to produce the goods and the time they are ready to sell their output. While in some cases long-term supply contracts at prearranged prices can be made, most prices, especially those of financial assets, commodities, and raw materials, are subject to almost constant fluctuations. Futures markets reduce the uncertainty and risk associated with these fluctuations by allowing market participants to enter into contracts, called futures contracts, which fix the price of a specified asset at a future date.

Futures contracts help the realmarket participants by facilitating hedging and help investors by making speculation easier. A futures contract is an agreement between two traders to exchange an asset at a predetermined future date (called the delivery date) at the “futures price.” In the case of futures markets, the “asset” has been standardized as to the quantity, quality, the delivery point, and the date of delivery. The trade may take place at a “futures exchange” or “over-thecounter” (OTC)-a service provided by many financial institutions. OTC market allows large transactions to take place at lower cost and without the risk of moving the market price. Almost all transactions now take place over the phone or electronically, replacing the close physical contact that used to characterize trading on exchanges.

A futures contract differs from a “spot” contract mainly in terms of the date of execution of the contract: A spot contract is executed immediately after the contract is made whereas a futures contract is executed at a prearranged future date. A futures contract differs from a “forward” contract in that the futures contract is for a standardized asset whereas the asset in a forward contract can be tailor-made. The oldest futures exchange in the United States, the Chicago Board of Trade was established in 1848. Futures contracts in tulips, however, were traded in Holland in the 17th century. Commodities, raw materials, and financial assets including interest rates and currencies form the bulk of the assets traded on the futures markets. There are, however, futures contracts for many exotic assets like weather.

The Chicago Mercantile Exchange offers futures contracts on snowfall, “cooling” or “heating” degree days in the United States, Canada, Europe, or Asia-Pacific, and even a future contracts on hurricanes. Futures markets facilitate the process of “price discovery” by providing information on current and possible future prices as assessed by market participants based on available information. This process is facilitated because futures markets provide improved liquidity and reduce counterparty risk for buyers and sellers of contracts over alternative arenas where comparable contracts could be traded. Improved liquidity comes from standardization of contracts, which makes trading easier for speculators.

Since all the characteristics of an asset have been standardized, a speculator can focus on the single element of the assets that is of interest to him/her-the price. Futures markets reduce the risk for traders by a practice called mark-to-market. Futures exchanges reduce the counterparty risk for a buyer or a seller in two steps. First, the buyer (or seller) of a futures contract enters into a contract to buy (or sell) a futures contract with the futures exchange, not with the trader who may enter into the opposite side of the transaction-in this case, the entity who may sell (or buy) the futures contract. This reduces the nonperformance risk, or the counterparty risk, from that of an unkown (and sometimes a higher-risk) seller to that of an exchange. As long as the buyer believes that the futures exchange will not become illiquid, there is no counterparty risk.

Second, the exchange reduces the nonperformance risk for itself by taking two related steps. First, every buyer (as well as every seller) deposits a “margin” usually equal to 10 percent of the value of the contract with the exchange when the futures contract is bought (or sold). Second, every contract is “marked-to-market” every day. At the end of every trading day, the exchange calculates the current value of the contract. If the price movement during the day has resulted in a loss of the value of the contract, the loss is deducted from the margin and the buyer is sent a “margin call.” This margin call requires the buyer to add funds to the margin so that it once again equals 10 percent of the value of the contract. Similarly, the exchange pays the day’s profits to the buyer of the contract should the price movement have been in favor of the buyer.

Should the buyer not respond to the margin call, the exchange can liquidate the contract on the following trading day and prevent any further losses on the contract. With this practice of marking every contract to market every day, the exchange faces no performance risk unless the price movement during the day exceeds 10 percent against the buyer and the buyer decides to default. Futures markets are regulated by Commodity Futures Trading Commission in the United States. The objective of the regulation is to protect public and market users from fraud, manipulation, and abusive practices. Futures markets contribute to the economic welfare of a society by increasing efficiency through centralization of services to all users of an asset.

They help users of assets in reducing risks by being able to hedge future transactions. They also help the economy by lowing “synthetic securities” to be created, which allow better management of risk, especially of financial risks associated with changes in prices and interest rates. Futures markets, however, are subject to manipulation by large traders. A humorous example of such potential manipulation was illustrated in the Hollywood movie Trading Places, which was released in 1983.

Author: Francesco Zinzaro
Article Source: EzineArticles.com
Provided by: Canada duty rates

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Day Trading Classes – What to Look for to Avoid Wasting Time and Money

January 25, 2010 · Posted in futures trading · Comment 

If you want to learn to day trade you may be considering taking day trading classes. A class is one way to learn but there are some things you should watch out for if you are a new trader.

No matter which financial markets you are going to trade, the fundamentals of trading and trading strategies and very similar. When it comes to the ways the markets move there is a common moving force and that is human behavior. Markets move the way they do because of the way traders behave.

If you haven’t had success yet with day trading, day trading classes may help you out. A class can teach you the basics of trading, how the markets work and different trading strategies. These things are important to know but won’t do you much good until you develop good trading habits.

When choosing a day trading class you will want to find one that will focus not so much on strategies but more on your own inner game. A common mistake many day traders make is to focus on finding the best strategy or the best indicators that will make them a success. Most traders focus too much on getting knowledge instead of focusing on getting experience.

The best way to get experience is take anything you learn and try it out with a demo trading account. For doing this I like to practice using a forex demo. Forex demo’s are great to learn on because the markets are always moving and you can practice whenever you want 24 hours a day. The skills you learn there can then be used with stocks, commodities or any financial market you decide to trade. You can get a free demo account from just about any forex broker.

If you decide to take a day trading class choose one that will help you with your inner game first instead of just overwhelming you with information and strategies.

Be patient in the process of learning to trade. It takes time and work and don’t expect to start making big money right away. If you want to make money right away with trading you will be better off taking yourself out of the picture and let an automated trading robot trade for you. These computer programs have the skills and strategies for success already programmed into them.

Watch the forex robot that I use trade the forex live and see how automated forex trading can make money for you on autopilot.

Michael Wilson has been managing forest land in Southern Oregon and Northern California for over 15 years.

www.firewoodresource.com

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Futures Trading – Profitable Endeavor Or Perilous Adventure?

January 24, 2010 · Posted in commodity trading · Comment 

Futures trading is one area of investing that can be downright intimidating to even seasoned investors. Littered with wonkish jargon and trading strategies that many stock and mutual fund investors may not be familiar with, it can scare off many investors before they even give it a try. All that said, futures trading does have one distinct advantage over trading other asset classes: The potential for big gains that can be accumulated in short time frame. Of course, those big gains depend on your system, strategies and a host of other factors, but we’ll address those factors later on in this piece.

Choices Aplenty In The World Of Futures Trading

Trading futures is similar to options in that futures markets give traders exposure to a broad swath of asset classes and that is another advantage of futures as an asset class. Want to trade commodities such as oil, gold and soybeans? Futures trading has you covered. Want to make a bet on the direction of a particular forex pair? Again, there’s a place for you in futures trading. It can also give investors exposure to indexes such as the Dow, Nasdaq and S&P 500 along with single-stock futures. And don’t fret if bonds are your cup of tea. There is a futures market for select US Treasuries as well.

As you can see, futures are far from limiting in terms of choices. Versatility is important in trading and trading futures can give you the versatility your trading returns may be needing.

Loving Leverage In The World Of Futures

You’ve probably heard the word leverage tossed around a lot by financial commentators and pundits in the wake of the financial calamity that enveloped many markets across the globe during 2008. Leverage became a dirty, four-letter word and the mismanagement of leverage was attributed to the downfall of several large financial institutions.

In the world of futures, consider leverage both a pro and a con. For the purposes of introducing you to futures trading, consider leverage as the market’s way of making your dollars go further. Let’s use gold futures to illustrate our point.

In a traditional gold futures contract that trades on the Chicago Board of Trade (CBOT), the investor must purchase 100 troy ounces of gold (the measurement of gold in financial markets) at 10 cents an ounce. And let’s assume that gold is trading for $1,000 per troy ounce. That means in a traditional gold contract, the investors exposure is $100,000! (100 x $1000/oz. = $100,000). You certainly won’t pay $100,000 for the contract, but your dollars are stretched a long way by the use of leverage in the futures world.

Now the flip side of this coin is that while you could possibly make $100,000 on a single trade if all goes right, the chance exists that if you don’t have stop losses in place, you could also lose $100,000, likely far more than your initial capital investment. And losing more than your initial investment is one of the rubs of trading futures.

Don’t Fret: There’s A Cheaper Way To Trade Futures

While that gold example may seem a little daunting, there is a way to get involved with futures without risking your entire nest egg. As this type trading has increased in popularity and more investors have wanted to get involved without investing five and six figures, E-mini futures have become more accessible to retail investors.

The advantage of trading E-mini futures, especially for new futures traders, is clear. Let’s use the gold example again. The mini-gold contract traded on the CBOT gives the investor control of just 33.2 troy ounces, making the cost of the contract $3.32 instead of $10 and significantly lowering the investor’s exposure.

Margin requirements are also lower with E-mini contracts. Your broker may require $5,000 in margin for a standard S&P 500 contract. If that’s the case, you can reasonably expect the required margin for the S&P 500 mini will be about $2,500. Advantage: Less risk, less capital required.

There are some drawbacks of trading E-minis though. Obviously, since you’re risking less money, your profit potential is diminished as well. There are also fewer trading options available to E-mini traders. For example, there is no mini contract for lean hogs. The E-mini futures market is also not as liquid as the traditional futures market and this can mean that there may not be a buyer around when you want to exit your position.

Futures Trading: More Pros Than Cons

At the end of the day, futures trading is a great avenue for investors seeking to magnify their returns. That’s not up for debate. Yes, futures trading has its risks, but what asset class doesn’t? Take the time to test your strategies on a demo account and understand how to properly manage leverage. That advice can put you on your way to harnessing the profit power of futures trading.

Author: Max D.
Article Source: EzineArticles.com
Provided by: US Dollar credit card

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Last Day For Forex Neutrino’s Mega Bonus Offer

January 24, 2010 · Posted in futures trading · Comment 

Forex Neutrino is officially a huge success, with so hundreds of user making profits of up to $1290 on Friday alone…

Richard Samuels always knew he had created a monster… after all this exact system is based on the trading styles of the elite traders like Bruce Kovner who went from a $3000 Credit Card loan to a Multi-Billionaire using the type of trading strategy that Forex Neutrino is based on…

He also studied the millionaire traders like Richard Dennis who used to be a NYC cab driver and took $300 and turned it into $150 Million and John Henry who went from an Arkansas farmer to owning the Boston Red Sox and his own Nascar team.

They achevied this via Forex Trading… Look Here

==> Visit Official Forex Neutrino Signals Website

Richard has decided to close down his site as he is not wanting to oversaturate the market with this sensational offer

As a result he has decided that for the first 50 people through the door he is going to offer an insane $1497 Forex Bonus giveaway…

He has 2 complete manual systems, 2 trading books, 2 indicators and a superb Expert Advisor worth a total of $1497.

Never before has such a ridiculous offer been put on the table and it is yours if you act NOW…

==> Visit Official Forex Neutrino Signals Website

Don’t be fooled by the bonuses as Richie has personal used these systems to help generate a comfortable 5 figures a month and will continue to do so but, as he is anxious to close his site down today and loves teaching his students his powerful methods he has been persuaded to make this crazy offer today for the first 50 people to purchase only…

the pip gains on these bonus systems is unreal and coupled with the award winning Forex Neutrino then you have a set of deadly trading systems that can not fail to make you some serious cash…

If you see a better offer than this, this year please let me know.

Richard is a serious trader and understands what it takes to be successful in Forex… He spent a long time building Forex Neutrino so that it pulled of the exact trades the elite traders use, despite some major setbacks in his life.

Go See His Story Here

==> Visit Official Forex Neutrino Signals Website

This is your last chance to grab this powerful system as he is being forced to take it of the market, as it is just so darn accurate..

Act Right Now and you can grab yourself his insane $1497 giveaway that is restricted to the first 50 users to purchase Forex Neutrino today so make sure you are one of the first as his bonuses have to be seen to be believed…

REMEMBER the craziest thing about this offer is you are still protected by Rich’s 60 day no questions asked money back guarantee offer, so there is no chance of failure… If your not happy simply let him know and you can have your money back with no hard feelings, just like that you have nothing to lose, although the chances of you wanting one are very slim

Rob Trader – Forex Expert
http://tradingtoollist.co.cc/

Article Source:http://www.articlesbase.com/day-trading-articles/last-day-for-forex-neutrinos-mega-bonus-offer-1774488.html

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Free Penny Stock Picks : Penny Stock Picks

January 22, 2010 · Posted in futures trading · Comment 

The key to making money in the stock market starts with the successful trade. It doesn’t matter what you’re trading. Many people look for penny stock picks to help get them on the right track and this is perfectly okay. However, there is a little bit of qualifying that must be done first. Let’s talk about that.

Perhaps one problem that plagues penny stock traders, which leads to capital loss, is the thought that penny stock buying is somehow easier or less valuable than buying “regular” stocks like Starbucks. This isn’t so. The same due diligence must be performed.

Get Best Penny Stock Pick Program to help you to make profit!

If you were to survey all the wealthy people on the planet (those with real wealth who stay that way), you’d find that by in large everyone would have one same characteristic: money in any denomination is highly valued and respected.

So, let’s talk penny stock picks and having more successful trades. It’s okay to get your hot penny stock picks from a newsletter, stock forum, blog, etc. What you do with your stock pick from there will largely determine your long-term success.

I’ve discussed this at length on my penny stock site, but let’s briefly talk a little about research. You’ve got to do it. I don’t care if you’re buying 100 shares or one billion. You must do at least some research.

Do you know what the one question you must ask first that could save you from losing a lot of money in the stock market? More on this later.

Volume is something you absolutely must look at before jumping into any penny stock. The best penny stock picks in the world are absolutely worthless if the stock is very difficult to get out of. You want to trade with stocks that allow you to get in and get out whenever you want.

Here’s a great tip for finding research over time. Use Google Alerts. I always recommend this to people. You can have Google alert you for company news, industry news, topical news, blog postings and much more. It’s really a valuable tool in my everyday life.

Get Best Penny Stock Pick Program to help you to make profit!

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Futures Contracts – The Basics

January 21, 2010 · Posted in commodity trading · Comment 

What To Pay Attention To When Buying Futures Contracts

In the diverse world of investment options, futures contracts are becoming more popular than ever. Originally developed from forward contracts – which were used by commodity producers like wheat farmers to lock in an agreed-upon price for the wheat they’d be harvesting many months later – futures contracts were designed and developed to help reduce the risk involved. With a contract, anyone who invests in futures is protected if prices drastically drop. Today, futures contracts – often referred to simply as “futures” – are used by a wide range of people and have many pros and cons associated with them.

Futures Contracts: The Basics

A futures contract is an agreement – which is legally binding – to purchase a commodity on a specific date in the future for an agreed upon price. This price is referred to as the futures price. Futures contracts are considered to be safer than many other investment products because they are based on a set of specific, standardized terms. The terms imposed by a futures contract may include:

Settlement Type – Usually either a physical settlement or a cash settlement
Underlying Asset – Could be a bushel of corn, an interest rate or a financial instrument like gold
Currency – The specific currency of the futures contract is quoted
Unit Type And Amount – Under the contract, the specific unit the underlying asset is being traded in is clearly outlined, as is its total amount
Grade – The grade, or quality, of the underlying asset is explicitly spelled out and must be delivered as such upon the delivery date or final settlement
Other Details – Many other details, including delivery month and the last trading date, can be spelled out under a futures contract depending on the underlying asset

Whether or not futures are an appropriate vehicle for a specific individual depends on many different things.

Why People Trade Futures

To get a better understanding of why futures are traded, it’s smart to be aware of a few examples. Someone might choose to purchase a futures contract if he expects the price of a stock to increase within a particular period of time. In this case, he would be using a speculative form of futures trading.

How Futures Prices Are Determined

The price of security futures is determined in the same way that stock prices are: the continuous fluctuations associated with supply and demand between buyers and sellers. Therefore, volatility can be quite high in futures contracts. As a buyer, you would benefit in the event that a futures price increased; you would lose out if the futures price decreased. For example, if you expected the price of the stock for EXAMPLE corporation to increase and purchased a 100-share April futures contract at $60 per share – and could later sell it at $70 per share – you would make $1,000 on the contract.

Understanding Margins

When it comes to futures contracts, a margin refers to the money that must be kept in an account to cover potential losses; by law, it is 20% of the contract’s value. Some people call it a “performance bond.” Depending on fluctuations, additional funds may become necessary; such a situation is known as a margin call. There is no guarantee that you will make enough on any futures contract to cover your margin or any subsequent margin calls.

How To Get Into Futures Trading

There are three basic ways to break in to futures trading; they are outlined below.

On Your Own – This is the least recommended method, as the volatility of trading futures contracts can lead to major trouble. If you decide to go it alone, it is best to only do so after “learning the ropes” through one of the other two options.

Managed Account – A safer way to get into the volatile futures trading market is by opening a managed account, which is similar to an equity account. A broker trades on your behalf, based on agreed-upon conditions.

Commodity Pool – Another, safer way to get into futures trading is by joining a commodity pool. Like a mutual fund, a commodity pool consists of commodities that can be invested in and shared among a group of other investors. The risk is mitigated a bit, because it is spread out.

Tips Regarding Futures Contracts When using futures contracts, it is important to note:

You must be willing and able to meet the requirements of any potential margin calls; in other words, you must have access to additional funds at all times
You must be willing to closely monitor your open futures positions; a sudden change might precipitate the liquidation of your contract
While it is possible to make an excellent profit on buying futures contracts, there is also great risk of losing a lot of money
As a general rule, the bare minimum that should be in an open futures account is $5,000; however, $25,000 or even $50,000 is a much more reasonable, realistic amount.

Author: Richard Moran
Article Source: EzineArticles.com
Provided by: Credit card currency-exchange fees

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Power Spike Xtreme Profits

January 20, 2010 · Posted in futures trading · Comment 

Stock trading is one of the ways to earn some extra cash working from the comfort of a person’s home.  Not only is it a way to make some extra cash but it has the potential to evolve in a full time home based business.  The Power Spike Xtreme Profits program claims to empower any person to start trading stocks immediately and without any previous experience.  The program details a technical pattern that claims to be mind blowing and all it requires from a person is a couple of minutes a day.

 

Power Spike Xtreme Profits lets a person into the world of professional stock trading.  It claims to answer questions like what does it take to trade like a professional, how to earn the big money like the pros, what secrets give the pros that edge that everyone is looking for and how can an existing trader elevate trading to a higher level.  As part of the program a person becomes a VIP member of The Logical Trades Daily Signal Service which shows which stocks have met the signal requirements and are ready to trade immediately.

 

Kevin Butler is the developer of Power Spike Xtreme Profits.  It is claimed that Kevin is a highly respected and very successful professional stock trader and technical analyst with over 20 years experience.  The program is made up of several modules, one the logical trades daily signal service which has already been mentioned.  This module entitles a person to receive daily emails with reports detailing stocks that have met the signal requirements.  Trading with consistent odds advantage is dealt with in the Professional Level Trading module. Reading the Charts module shows how to consistently know what the market is going to do tomorrow.  The Position Leverage Strategy exposes how the pros funnel capital away from bad trades into the best trades. 

 

(c) Reviewed Best 2009 – 2010

Interested in the online money making industry. Writes articles and reviews on the subject and products. www.make-easy-money-directory.com info@make-easy-money-directory.com

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1 Million Reasons Why You Need Forex Neutrino

January 18, 2010 · Posted in futures trading · Comment 

Right now traders all from all over the world are lining up to buy Richard Samuels Forex Neutrino. I have never seen the forex community so excited by a new system, but when you really think about it, it’s pretty obvious why everyone is so excited.

You see, Richard spent years studying the real masters of Wall Street and their secret trading methods. Master traders like the secrative Billionare Forex Mogul Bruce Kovner, the former NYC taxi cab driver who borrowed $3000 and turned it into a multibillion dollar fortune.

Richard Dennis, who’s meager $300 investment grew to a $150million + fortune.

and John Henry, considered one of the greatest systems developers and traders of all time. Henry was an Arkansas farmer before he took to the forex markets, now he owns the Boston Red Sox and his own NASCAR team.

==> Visit Official Forex Neutrino Signals Website

Look, the multi trillion dollar forex market is one of the last truly level playing fields out there. Where else have you heard of $300 investments growing into 9 figure fortunes.

Where else could a college drop out taxi cab driver borrow $3000 from his credit card, and become one of the ten richest men in New York City.

Only in the Forex Market.

Richard Samuels years of study lead him to develop Forex Neutrino, and we are lucky enough that he has decided to share it with all of us.

==> Visit Official Forex Neutrino Signals Website

Forex Nuetrino, the system that turned a $5000 account into a $71,293 accoount with over 95% winning trades.

Forex Neutrino is a 100% Automatic system that does all of the work for you. You can trade part time from home. Heck, you can even run Forex Neutrino while your at your job and let it pile up the profits for you until the day arrives that you can tell your boss “take this job and shove it”.

And with trades like the one I just saw that $17,390 in a single day for Richard, well, that day won’t be too long in coming.

You need to be fast though, because Richard is only making 600 copies of Forex Neutrino available at the introductory rate of $97. One those first 600 copies are gone, he’s going to raise the price to $197, or worse yet remove it from the market all together.

The New Year has just gotten under way. Don’t let this opportunity pass you buy. Sieze the day and make 2010 the successful year you deserve it to be.

==> Visit Official Forex Neutrino Signals Website

Forex Neutrino is the only system available to the public that puts you on the same playing field as the biggest billionare traders in the world. With only 600 copies available, and nearly 65,000 people getting this email right now, I can gaurantee you that Forex Neutrino is not going to be available for very long.

If you want to have the same advantage that the world’s richest Forex traders enjoy, you need to act quickly before Forex Neutrino is gone forever.

Rob Trader – Forex Expert
http://tradingtoollist.co.cc/

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Differences Between Stock Investing Vs Futures Trading

January 18, 2010 · Posted in commodity trading · Comment 

At some point, most serious stock traders and investors become aware of the futures market. There is a whole industry built around attracting new participants into commodities, as well as an entire industry catering to teaching how to trade futures.

(Note that I am using the terms “commodities” and “futures” interchangeably. Some in the futures industry use “commodities” to denote futures on agricultural, livestock, and other food products. They use futures to denote financial futures like stock indexes, bonds, and foreign currencies).

Most investors should “quit while they are ahead”, and avoid getting involved with futures. The surest way to build wealth is the stock market. Futures, on the other hand, are a good way to lose your money.

But, to provide a basic understanding, here are the differences between investing in stocks vs. futures:

1. The “future” in futures – When we buy or sell shares of a stock, we are actually buying or selling the stock today. With futures, you are actually entering into a contract to buy or sell a certain amount of a product at a certain date in the future. From a fundamental point of view, this means that a stock investor is trying to analyzing supply / demand for today. The futures trader is trying to analyze how supply / demand will be in the future.

2. Specific contract sizes – A stock market investor can buy or sell as many shares as they want. A futures trader is limited to trading in specific contract sizes. For example, I can sell 1 share of IBM stock, but I can only trade corn futures in multiples of 5,000 bushels. This makes it hard to use re-balancing formulas (a very powerful method in stock trading) with futures.

3. Leverage – A stock trader can, at most, use 50% leverage. This means that, if they have $100, they can buy $150 worth of stock. Futures traders, on the other hand, can use almost 90% leverage. For example, at a price of $2.54 per bushel, a futures contract of corn is worth $12,700. The margin to buy or sell a corn contract, however, is only $2,000. This means that, for $2,000, you can control $12,700 of corn.

At this level of leverage, a 15% increase in corn prices will double your money. But, a 15% decrease will wipe you out. If corn prices fell 30%, you would lose double the value of your account, and would have to pay the difference.

This leverage is the critical factor with futures trading. This ability to make a lot of money fast is what attracts people to futures, but it has also been the cause of many bankruptcies, divorces, and suicides.

Ironically, the commodities themselves are less volatile than stocks. This makes sense, because there are more factors that can affect IBM than can affect corn. Growing grain is easier than running a multinational company. It’s the leverage that makes it volatile. Essentially, you are magnifying the price movements. The drawback is that a futures trader is more vulnerable to random fluctuations. This is why futures trading is more like gambling. Even if you analyze correctly, and price eventually reaches your prediction, a sudden, short lived price spike can wipe out your account.

4. Ease of short selling Since stock traders are actually buying and selling shares of stock, it is harder to sell short to take advantage of falling prices. Since you can’t create a share of IBM, you actually have to borrow shares through your broker. Then, you pay interest and dividends to the owner until you buy back the shares. With futures trading, going short is as easy as going long. Since you are entering a contract to buy or sell something in the future (rather than actually selling something), you just create a contract promising to sell.

5. Expiration dates With stock trading, once you own shares in a company, they are yours to keep until you sell them. You can own shares forever. With futures, they have a certain date at which they come due. If you don’t offset your contract before that date, you may have to deliver or take delivery of the product. For example, if you have a contract to buy 5,000 bushels of corn, and you don’t sell it before the date, you might start getting warehouse bills for your corn.

I hope this article has provided you with a basic understanding of futures vs. stocks. As I stated before, I think most traders are better off sticking with stocks. Futures are less forgiving and more random, so it is much harder to develop a system that has a sustainable edge over time.

Author: Praveen Puri
Article Source: EzineArticles.com
Provided by: Canada duty

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