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	<title>STOCK TRADES &#124;TRADING STOCKS &#187; Futures Trading</title>
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		<title>Fill In The Gaps With International Trade!</title>
		<link>http://www-stocktrades.com/fill-in-the-gaps-with-international-trade/</link>
		<comments>http://www-stocktrades.com/fill-in-the-gaps-with-international-trade/#comments</comments>
		<pubDate>Sun, 05 Jul 2009 05:58:37 +0000</pubDate>
		<dc:creator>Stock Trades</dc:creator>
				<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[Trade]]></category>
		<category><![CDATA[trading]]></category>

		<guid isPermaLink="false">http://www-stocktrades.com/fill-in-the-gaps-with-international-trade/</guid>
		<description><![CDATA[Owning your own business is difficult at times. Competition is greater because you have less “man power”, less products, and often times less money going into the business than what is coming out.   At times, your product may not be selling well in your area, or may eventually become obsolete all together.  [...]]]></description>
			<content:encoded><![CDATA[<p>Owning your own business is difficult at times. Competition is greater because you have less “man power”, less products, and often times less money going into the business than what is coming out.   At times, your product may not be selling well in your area, or may eventually become obsolete all together.  If the success of your product depends on things such as say, the weather, then you may be slow for several months out of the year and this could cause financial difficulty.</p>
<p>Think about expanding your business through international trade.  The idea of going international may sound only possible for the “big dogs”.  It may seem difficult, stressful, or even pricey.  Not true.  There are people all over the world in need of what you have to sell and reaching out to them is sometimesas easy as a phone call or the push of a few buttons on your lap top.  Following are several hints to successfully expanding your business <br />
worldwide.  </p>
<p>First, you may want to look at importing and exporting.  Though importing, you could provide a greater variety to the product you’re selling with similar products from other countries.  The buying or manufacturing of products from other countries may also be cheaper than production where you are. Also, the products that you import would be unique therefore your customers <br />
would be coming to only you for them.  The advantage of exporting are many.  The use or need for your product could become obsolete in your country after a few years especially if you are selling computer or data products; but it could be a new, hot commodity in another country.  <br />
Say your country is experiences a consumer drought, but in other countries their economy is booming!  You want your product to be where the money is.  As I stated before, if your product is weather or season dependant, exporting could benefit you during those several months out of <br />
the year when your product is not needed. </p>
<p>Consider adding mail order services to your present business.  You can increase your selling power by using this method of selling which is favorable to international trade.  The internet is a prosperous way that businesses are getting the news of their products worldwide.  Use websites, online stores, and affiliate marketing strategies to obtain foreign business.  The internet is not going anywhere anytime soon.  And more and more people are jumping on to the whole idea of being able to shop at home.  Get your product online so that it can be seen by people everywhere there is an outlet and electricity!!!</p>
<p>Becoming a licensing agent has its international trading benefits as well.  You can earn royalties if you arrange for foreign corporations to manufacture and sell products from domestic companies.  Most business owners have no idea the amount of money that they can make simply finding foreign buyers for domestic companies.  On the flip side, you can earn fees from foreign companies for finding domestic corporations who are willing to buy their <br />
products.  </p>
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<p>http://www.electrotape.com</p>
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		<title>Find Out How To Trade Index Futures</title>
		<link>http://www-stocktrades.com/find-out-how-to-trade-index-futures/</link>
		<comments>http://www-stocktrades.com/find-out-how-to-trade-index-futures/#comments</comments>
		<pubDate>Sun, 21 Jun 2009 23:20:04 +0000</pubDate>
		<dc:creator>Stock Trades</dc:creator>
				<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[Day Trading]]></category>
		<category><![CDATA[Funds]]></category>
		<category><![CDATA[index futures]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[Investment]]></category>
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		<description><![CDATA[Investing in the emini index futures market is decidely volatile and liquid which makes it a area that discipline and internal control will eventuallyin the end establish if the trader is effective or not. The first step that a inexperienced trader should consider is taking a look at their self or take an internal inventory. [...]]]></description>
			<content:encoded><![CDATA[<p>Investing in the emini index futures market is decidely volatile and liquid which makes it a area that discipline and internal control will eventuallyin the end establish if the trader is effective or not. The first step that a inexperienced trader should consider is taking a look at their self or take an internal inventory. To be successful at emini market success, the trader must first obtain a system that is right for them and one that fits their personality.</p>
<p>In order to build a system like this, the trader must first take a inventory of himself and his skills: his personality or temperament, time constraints, available resources, weaknesses and strengths. Without first taking this personal inventory, the trader can never hope to develop a <a rel="nofollow" href='http://hubpages.com/hub/tradingindexfutures' target='_blank'>index futures</a> trading methodology that is correct for them.</p>
<p>Important Considerations</p>
<p>How much capital do they have on hand that can be used to trade and available for risk? Absence of funding is a source of major complications for rookies. If adequate funds are not available then proper position sizing cannot be reached and this is a critical segmentpart of a successful trading system that goes largely ignored.</p>
<p>Does the trader enjoy ample computer skills? If not, a computer class should be taken to improve computer proficiency. Losses are part of trading and unavoidable. How well does the trader tolerate and handle losses? <br />
There are many imperative issues that the trader must consider before entering the index futures markets. One sginificant element is time. If the trader has a full-time job during market hours it will be next to impossible for the trader to access the markets during the daily sessions. However, it is possible for the trader to implementimplement an automated system that will buy and sell emini contracts on auto-pilot. However, this sort of system is usually reserved for the trader that is seasoned and already has the required skills to be successful with this type of trading system.</p>
<p>The trader’s purpose when trading the index futures market is another very essential aspect of the market. The trader cannot develop a successful trading system for making money in the futures markets unless he first comprehends what he is wishing to accomplish. Determining his objectives and having them clearly in his mind should be major task in developing a system with almost half the time spent designing the system. </p>
<p>Determining how aggresive the trader wishes to be in the market is another very important part of becoming profitable. Does the trader have a long term position that involves holding emini contracts for an lenghthy period of time or does the trader wish to use the swing trading or day trading form of emini futures trading, where the time periods are much shorter than the long term form of trading?</p>
<p>As you can perceive from the brief summary above, there are very many different aspects of emini index futures trading that must be measured before ever entering the market. Taking a self-inventory of your personality and available resources is the first step a new trader should take in system development and trading success.</p>
<p>Learn more about <a rel="nofollow" href='http://emini-chart-trading.blogspot.com/2009/06/nasdaq-emini-trade-nq-futures.html' target='_blank'>NASDAQ emini</a> trading.</p>
<p>
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		<title>Advice About How You Can Succeed At Trading Eminis</title>
		<link>http://www-stocktrades.com/advice-about-how-you-can-succeed-at-trading-eminis/</link>
		<comments>http://www-stocktrades.com/advice-about-how-you-can-succeed-at-trading-eminis/#comments</comments>
		<pubDate>Fri, 12 Jun 2009 00:30:05 +0000</pubDate>
		<dc:creator>Stock Trades</dc:creator>
				<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[Day Trading]]></category>
		<category><![CDATA[Forex]]></category>
		<category><![CDATA[Funds]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[trading]]></category>

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		<description><![CDATA[Index futures contracts have shown a explosion in traders since their introduction mainly because of their smaller margin standards which allows participants that don&#8217;t have limitless funds to participate in the emini markets. Eminis are available to trade on all three major indexes including the S&#38;P 500, NASDAQ and the DOW and commonly utilized by [...]]]></description>
			<content:encoded><![CDATA[<p>Index futures contracts have shown a explosion in traders since their introduction mainly because of their smaller margin standards which allows participants that don&#8217;t have limitless funds to participate in the emini markets. Eminis are available to trade on all three major indexes including the S&amp;P 500, NASDAQ and the DOW and commonly utilized by traders for both day trading and scalp trading.</p>
<p>The ES emini contract is one-fifth the amount of the large contract which makes it appealing to traders with lesser funded brokerage accounts. Since the emini market is fluid, volatility creates opportunities for market players to profit everyday. Stationary and sideways markets that so often are a part of the other financial markets is virtually non-existent in the emini market. The New York lunch break is usually the only slow time during any given trading session since floor traders and other market participants break for lunch, with action rapidly resuming once the lunch hour is over. <a rel="nofollow" href='http://emini-chart-trading.blogspot.com/' target='_blank'>E mini trading</a> is often at it&#8217;s best as the market moves toward the closing bell.</p>
<p>Some traders only trade the 1st hour to hour and half each morning session, taking their profit and doing whatever they wish for the rest of the day, while others will trade only during the first and last hours of the day. The opening and closing hours of the day often see the most volatility and market moves, although many opportunities to profit are available throughout the day.</p>
<p>One of the most exhilarating features of the index futures markets and what attracts traders is that market direction is not a concern. Traders can profit by entering trades both long or short and only care about being on the profitable side of the trade. Unlike stock trading, hours of research and chart scanning for potential stocks to trade is eliminated with emini index trading. Since the same contract will be traded each day, there is no need to look over hundreds of charts each night.</p>
<p>Index futures trading offers an opportunity for traders to profit on market moves within the market on a daily basis. Although the emini futures market is influenced by financial news reports and geo-political events, the futures trader can often sit on the side when financial news reports are due to be released. Almost all financial reports have distribution release times which allow the trader to plan his strategy around these reports. There is no need to be concerned about stock analyst downgrades or unexpected news events that are so common on the stock exchanges, which can adversely affect a trader&#8217;s positions. <a rel="nofollow" href='http://emini-chart-trading.blogspot.com/2009/03/emini-trading-set-ups-and-how-to.html' target='_blank'>Index futures</a> trading removes some elements of market unpredictability.</p>
<p>Emini futures trading is an exciting vocation. If the trader takes the necessary time to learn about the index futures market and it’s internals, he can be successful. Having a trading system with sound money management criteria in place is the most important tool needed to be profitable. Once the trader has a system in place, he should experience success as a emini futures trader.</p>
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		<title>Your Business As An Online Trader</title>
		<link>http://www-stocktrades.com/your-business-as-an-online-trader/</link>
		<comments>http://www-stocktrades.com/your-business-as-an-online-trader/#comments</comments>
		<pubDate>Sun, 10 May 2009 00:15:47 +0000</pubDate>
		<dc:creator>Stock Trades</dc:creator>
				<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[Day Trading]]></category>
		<category><![CDATA[FX]]></category>
		<category><![CDATA[Investment]]></category>
		<category><![CDATA[Stocks]]></category>
		<category><![CDATA[trading]]></category>

		<guid isPermaLink="false">http://www-stocktrades.com/your-business-as-an-online-trader/</guid>
		<description><![CDATA[Trading online as a business requires a plan, a business plan. Previously I had posted an article, the most important aspect to be a successful day trader was to understand how to manage your trading as business. Most traders focus on executing trades with a high percentage of correct trades. Then calculate the winner ratio [...]]]></description>
			<content:encoded><![CDATA[<p>Trading online as a business requires a plan, a business plan. Previously I had posted an article, the most important aspect to be a successful day trader was to understand how to manage your trading as business. Most traders focus on executing trades with a high percentage of correct trades. Then calculate the winner ratio vs. the losing ratio in gains and losses. A common mistake would be to start you money management from this point. You business plan for trading should include this breakdown and tracking but you should establish a macro view to your investment and your business plan expenditures first. For example when figuring you max daily loss for a day of unsuccessful trading you would want to add the amount of your daily cost to run you trading operation. Data feeds, internet provider, phone, news letter subscriptions, educational material (books cds, seminars) etc. Software cost could be broken down to average out over yearly to daily costs. Any depreciation of equipment you own and use to run daily operations. The amount of items in your trading business is very streamlined in my opinion so adding all the information should not be difficult but it will give you a better understanding how to calculate your profit and/or loss. You will understand how much you need to profit daily just to break even and then how much profit you get to keep. Capital gains tax can be a subject by itself but more on that at a later date. As a matter of fact seek legal advice from firms that deal specifically with traders.</p>
<p>Your daily operation starting with your account balance and you daily cost to operate has an exact figure. Let’s say for example you are like many other traders and don’t have $100,000 to start with. The reason I said $100k was it is a well established amount to deal with drawdown, margin requirements and the learning curve you will under go. With that being said lets deal with the majority and take our example and use $10,000 as our account balance. Daily operation cost not including commissions is $75. I rounded out 20 trading days a month with respect to half days before holidays, holidays and the weekends depending on the market you trade. Expenditures include data service, subscriptions, seminars, internet connection, phone, education material, and trading room fee. Let’s open our eyes and see that we are $8,100 in the hole, but then again our year of trading has not occurred yet. This information allows us to account for our operation which opens a better understanding to our trading day. This is the reason I love this business. It is so streamed lined. Operating cost is very low. There is basically no over head or inventory, equipment costs are minimal and you can operate from virtually anywhere.   </p>
<p>
Risk threshold varies from person to person however there needs to be an outline. Since there are so many vehicle to trade it is difficult to pinpoint a level. You take your $10,000 and trade one contract on the e-mini s&amp;p. Margin requirement at the time is $6,000 therefore $4000 is at risk before you get margin call and need to put more money in your account. I am not trying to be negative. It is a matter of understanding loss potential in real numbers. The e-mini contract would have to move 80 points against you to wreak havoc in your account. The market volatility today can cause this to happen in only a few days. Since this a business and most business owners operate full time we will assume that we monitor our operation consistently. To implement our risk threshold take a percentage of the account size plus cost to operate and decide the amount you are willing to risk each day. Five percent of account size plus expenses in our example trading one contract on the e-mini s&amp;p would allow us to risk 8.5 pts or $425. Add the $75 to operate and you get your 5%.  Reverse the outcome and you have had an excellent trading day. You can apply this to any market you want to trade.</p>
<p>Remove the stress and indecision from <a rel="nofollow" href='http://www.ino.com/info/190/CD3689/&amp;dp=0&amp;l=0&amp;campaignid=8' target='_blank'>Day trading currencies</a>. Click on the link to get the tools and education you need to <a rel="nofollow" href='http://www.avatarconsultant.com/efx' target='_blank'>Day trade stocks</a>. This is the second article I have posted on Trading for a Living so if you are interested check back here. I will continue to post information on the subject.        </p>
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		<title>Trading Commoditites And Futures: Back To The Days Of Trading Peas For Wheat</title>
		<link>http://www-stocktrades.com/trading-commoditites-and-futures-back-to-the-days-of-trading-peas-for-wheat/</link>
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		<pubDate>Mon, 20 Apr 2009 18:45:04 +0000</pubDate>
		<dc:creator>Stock Trades</dc:creator>
				<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[Forex]]></category>
		<category><![CDATA[Forex Trading]]></category>
		<category><![CDATA[investing]]></category>
		<category><![CDATA[Stock Market]]></category>
		<category><![CDATA[Stocks]]></category>
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		<description><![CDATA[The stock market has many confusing terms, with &#8220;commodities&#8221; and &#8220;futures&#8221; being two of the most confusing. In the simplest definition of the term &#8220;commodity,&#8221; means actual, physical, tangible goods. Whether it refers to corn, soybeans, oil, or even gold, the actual physical item is referred to as a &#8220;commodity&#8221;. Of course, a commodity trader [...]]]></description>
			<content:encoded><![CDATA[<p>The stock market has many confusing terms, with &#8220;commodities&#8221; and &#8220;futures&#8221; being two of the most confusing. In the simplest definition of the term &#8220;commodity,&#8221; means actual, physical, tangible goods. Whether it refers to corn, soybeans, oil, or even gold, the actual physical item is referred to as a &#8220;commodity&#8221;. Of course, a commodity trader does not take a bushel barrel full of soybeans to the market looking for the best price for his wares, but the trade does consist of the actual crop. Within commodity trading, there is also &#8220;futures&#8221; trading, which involves the potential crops usually traded by contract for the following year. </p>
<p>Within the commodity trading market there are three types of investors: commercial investors, large speculators and small speculators.  Commercial investors are the large companies that trade in a certain commodity to make a product- say for instance, the dozens of products that can be developed from corn. A large farm operation will produce corn that will be sold fresh, canned, frozen, as corn oil or used as feedlot food for cattle and other livestock. That single commodity has suddenly become several new products, usually traded as separate stock forms for different parent companies. The commodity-trading expert has a good idea about which crop will have a good year, and which ones might falter based on weather, production and other considerations. </p>
<p>Large speculators pool money to enable themselves the opportunity to buy larger blocks of a certain commodity, and to reduce their individual risks. Large speculator groups use a centralized money manager who actually make the trades, and in most cases, make the financial decisions for the investors as well. If the speculator&#8217;s money manager decides to diversity into commodity futures trading, that is what they will do. </p>
<p>The third group is the small speculators. These are individuals who do commodity trading on their own or through a broker. Small speculators or large speculator groups can greatly influence a commodity trading market by buying or selling large blocks of stocks at one time. </p>
<p>Futures trading in Commodities is about having the right season, but it is a lot more about having knowledge. To be a successful futures trader you must know a bit about the crop you deal with, the climate in the area that you are dealing with, and the predicted weather patterns for the growing season. There is no sense in investing a ton of money in corn, for instance, if a low season is expected because of repeated flooding. Know that futures trading is a risky venture, even under the best conditions, and that even if you look carefully at every factor, there are twists of fate that nobody can predict or prepare for. What if there is an infestation of parasites in the crop you just sunk your life savings into? Not only will that farmer not make contract, you will have just lost all of your trade capital to boot. </p>
<p> Futures trading is wisely best left to the bigger traders and the speculators to deal with. Venture capital is becoming harder and harder to come by, and losing once in the futures market can spell the end of a trading career. It is hard to face, but sometimes it is better to stay out of the game then it is to lose your entire financial standings because of a freak storm or other tragedy. </p>
<p> If you insist on commodity futures trading despite all of these pitfalls then you must keep in mind that diversification could be the key to keeping your head above water when everyone else is sinking. Don&#8217;t put all of your eggs in one basket. Don&#8217;t sink all of your money solely in corn for instance, if there is a chance that corn will perform badly this season. Split your trades between corn and soybeans evenly, or at a percentage that will allow you some degree of comfort if one of those should happen to falter on the open market. </p>
<p>See other topics at <a rel="nofollow" href='http://www.getwealthyslowly.com/lose-my-job.html' target='_blank'>lose my job</a> and <a rel="nofollow" href='http://www.go-green-blog.com' target='_blank'>ways to go green</a>.</p>
<p>Access free points of view about <a rel="nofollow" href='http://www.forexmaestro.com/' target='_blank'>online forex trading info</a> &#8211; this is your individual tips store.</p>


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		<title>Commodity Futures Trading</title>
		<link>http://www-stocktrades.com/commodity-futures-trading/</link>
		<comments>http://www-stocktrades.com/commodity-futures-trading/#comments</comments>
		<pubDate>Thu, 26 Feb 2009 02:51:23 +0000</pubDate>
		<dc:creator>Advisor</dc:creator>
				<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[Investment]]></category>
		<category><![CDATA[beginner traders]]></category>
		<category><![CDATA[commodity futures trading]]></category>
		<category><![CDATA[futures contract]]></category>
		<category><![CDATA[futures trading market]]></category>
		<category><![CDATA[investment capital]]></category>
		<category><![CDATA[Stocks]]></category>
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		<description><![CDATA[Commodity futures trading is a type of <a title="Investment" href="http://www-stocktrades.com/category/investment-2" target="_blank"><strong>investment</strong></a> where one can make money by speculating on the price of a certain commodity going up or down in the future. Commodities are usually the essential things that people make use of everyday. Most of the times, these commodities are the basic essentials needed by a modern society.
]]></description>
			<content:encoded><![CDATA[<p><strong>Commodity Futures Trading</strong></p>
<p>Commodity futures trading is a type of <a title="Investment" href="http://www-stocktrades.com/category/investment-2" target="_blank"><strong>investment</strong></a> where one can make money by speculating on the price of a certain commodity going up or down in the future. Commodities are usually the essential things that people make use of everyday. Most of the times, these commodities are the basic essentials needed by a modern society.</p>
<img class="size-full wp-image-123" title="commodity-futures-trading" src="http://www-stocktrades.com/wp-content/uploads/2009/02/commodity-futures-trading.jpg" alt="Commodity Futures Trading" width="240" height="240" />
<p>When talking about certain commodities being traded in the futures market, it must meet certain conditions to make it allowable for trading. One of the conditions is that the commodity should be standardized. In trading agricultural and industrial commodities, the traded commodity should be in its basic raw and unprocessed state. In this case, Wheat may be traded in the futures market but not flour. <span id="more-117"></span></p>
<p>Another condition that a certain commodity has to meet is that the perishable kind should have adequate shelf life. The reason for this is that these commodities are traded with their delivery scheduled deferred at a future time. Therefore, there may require a long shelf life so that the commodities may be delivered with its quality still good and intact. Another condition that a certain commodity should meet is that it should have a price that changes often, creating some uncertainty as well as opportunity to profit. </p>
<p>The history behind<a title="Futures Trading" href="http://www-stocktrades.com/category/futures-trading " target="_blank"><strong> futures trading</strong></a> in commodities evolved from the farmer&#8217;s need to earn more from every harvest. Before commodity futures trading started, the farmers were always at the mercy of the dealer when it comes to pricing and selling their harvests. Dealers usually set the prices and the farmers cannot to anything but accept the terms. In a way the farmers were being exploited by some dealers and so another form of selling their harvest.</p>
<p>In the search for having a more fair system of doing business, farmers began offering future harvest to interested buyers. The farmers started giving their own terms for the future harvests to dealers. The transaction consists of commodities offered as a certain price and to be delivered as a specified date. Contracts were then drawn up between the farmer and the interested buyer that specified the certain amount of commodity to be delivered at a particular time in the future. From this system, what is now known as futures trading has begun.</p>
<p>It was sometime in 1878 that a central dealing facility for such commodities contracts was established in Chicago. In this facility, farmers and dealers began initially in spot dealing of their grains that was immediately delivered upon a reached settlement in price. It eventually evolved into futures trading when farmers started committing future harvests to interested dealers willing to buy to ensure that their grains supply are maintained in the future.</p>
<p>In the beginning, futures trading initially consists only of a few farm commodities such as grains. But later on, a huge number of other commodities joined in. Now there are <strong>futures trading markets</strong> that deal in precious metals such as gold, silver and platinum. There is also a futures trading market for livestock and cattle as well as for energy products such as crude oil and natural gas. It has gone on to include futures trading in coffee, orange juice ad industrials such as lumber, cotton and even on interest rate bearing instruments such as currencies and stocks.</p>
<p><strong> Futures Investment</strong></p>
<p>Futures trading can be an attractive investment option for some people. It is a type of investment where investors try to take advantage of trading futures contracts. These are contracts that are made by producers of a certain commodity with a dealer which involves the obligation of delivering a certain amount of a certain commodity for a specified period of time in the future. The commodities that such futures contracts trade can include grains such as wheat, corn to other produce such as lumber, livestock, cattle, coffee and even orange juice. There are also futures contracts for precious metals such as gold, silver and platinum.</p>
<p>What makes futures trading quite attractive is the high level of investment leverage that it offers. Investors can invest just as little as ten percent of a futures contract&#8217;s value in order to have the opportunity to trade it. This allows investors to trade futures contracts using lesser investment capital for trading larger valued contracts.</p>
<p><strong>Futures contracts </strong>usually have standardized amounts of the commodity that they involve. For example, if an investor holds a future contract for wheat, he usually holds a value worth 5,000 bushels. Trading the contract would be dealing based on the value of the 5,000 bushels of wheat.</p>
<p>Although futures contracts only require a fairly small investment (usually ten percent of the contract value, known as the margin), investors should still think before taking or buying a futures contract. Beginner traders should first try to establish that they can afford to trade such a contract. Traders should consider if they have enough margins to cover the contract as well as if they have what it takes to trade and deal a sizable move in prices that can go against their position.</p>
<p>It is also important that beginner traders try to establish a system of risk and reward when trading for a particular commodity. There are many factors that may affect the position of the trader in different futures contracts since they can involve a variety of commodities. Traders should have a good idea on how to handle their position in order to make money in futures trading. A good way to do this is to establish a stop loss feature on traded futures. This simply means that the investors establish a certain price range wherein the contracts may stop trading in order to preserve profits from the trade or to minimize the possible losses.</p>
<p><strong>Beginner traders</strong> should also consider spreading their trading from a variety of commodities instead of only dealing on one. If one has the capital to afford in trading five futures contracts, it would be wise to have the contracts involve a variety of commodities. This way the risk may be spread over a varied number of commodities, thereby providing a more or less stable position when one of the commodities suffers a decrease in price value. Dealing with only a single commodity in this case can considerably increase the possible losses.</p>
<p>Beginner traders should only try to risk about five percent of their trading capital on futures contracts. The reason for this is because, one can also easily lose considerable capital in futures trading. It is wise for traders to only invest the amount that they are prepared to lose.</p>


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		<title>Futures Trading Education</title>
		<link>http://www-stocktrades.com/futures-trading-education/</link>
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		<pubDate>Tue, 24 Feb 2009 21:57:32 +0000</pubDate>
		<dc:creator>Advisor</dc:creator>
				<category><![CDATA[Futures Trading]]></category>
		<category><![CDATA[futures exchange trading]]></category>
		<category><![CDATA[Futures Trading Basics]]></category>
		<category><![CDATA[futures trading education]]></category>
		<category><![CDATA[futures trading market]]></category>
		<category><![CDATA[Investment]]></category>
		<category><![CDATA[share trading]]></category>
		<category><![CDATA[Stock Trading]]></category>
		<category><![CDATA[Stocks]]></category>
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			<content:encoded><![CDATA[<p><strong>Futures Trading Basics</strong></p>
<p>Futures trading is another method of investment available for people to invest in. and just like any other form of investment, success requires that the investor get to know the market and the process of trading. Without the necessary knowledge in <a title="Futures Trading" href="http://www-stocktrades.com/category/futures-trading" target="_blank"><strong>futures trading</strong></a>, it would be difficult for any investor to make money out of their investment capital effectively. They would even be risking their money from possible investment loss.</p>
<img class="size-full wp-image-118" title="futures-trading" src="http://www-stocktrades.com/wp-content/uploads/2009/02/futures-trading.jpg" alt="Futures Trading" width="300" height="223" />
<p>For starters, investors should know what futures trading is all about. The simplest definition to understand about futures trading is that it is a type of trade wherein a type of commodity is being traded on a market with transactions noting a particular type of commodity sold and bought at a specified price and deliverable from a specified time in the future.<br />
<span id="more-116"></span></p>
<p>What futures trading is all about can be summed up in a typical transaction between two parties. One party is a producer of a certain commodity while the other is the buyer. The producer offers the buyer a certain commodity deliverable in the future, let&#8217;s say, six months from now. The buyer, who may be looking to ensure that he has ample supply of the said commodity in the future, would surely be interested.  Both parties then make up a contract wherein a specified amount of the commodity may be deliverable for a particular time in the future is agreed upon. That, in a nutshell, is what futures trading is about.</p>
<p>For others, it might still be a little bit complicated to understand. But the essence of <strong> trading in futures </strong> lies in the understanding between the commodity supplier and the buyer of the commodity. Sometimes during the course of time between the agreement and the time of delivery, the contract may change hands as the buyer may wish to trade the contract for other lucrative opportunities.</p>
<p>Futures trading started with grains such as wheat as the main commodity traded. Trading eventually comes to include other commodities such as lumber, crude oil, coffee and even orange juice. Precious metals such as silver, platinum and gold also have their own<strong> futures trading market</strong>.</p>
<p>Futures trading transactions usually happen in places called future exchanges. They may operate much like the stock exchange. Only this time, it is the commodities that are being traded instead of<a title="Stocks " href="http://www-stocktrades.com/category/stock-market" target="_blank"> stocks</a>.  The futures exchange tries to standardize all of the futures contracts being traded in order to facilitate faster and more convenient liquidity upon the contract&#8217;s expiry date.</p>
<p>The futures exchange trading floors are usually divided into certain pits or rings where traders stand facing each other. Each ring has their designated type of traded futures contract. The exchange can house different futures trading for a variety of commodities. It can be quite common to see a pit trading wheat alongside a pit trading in crude oil and soybean. The <strong>futures exchange trading</strong> floor usually only allow members to trade and speculate. Non-members have to go through brokers or partners who hold memberships in order to trade.<br />
Just like any other type of investment, futures trading also has its own advantages and disadvantages.  It takes a wise investor to first learn about the ins and outs of futures trading before venturing out into the opportunities that it may provide.</p>
<p>Advantages Of Futures Trading</p>
<p>Futures trading offers a good opportunity for other people to invest in. trading in futures contracts offers people the unique opportunity to invest in something other than stocks. Although sometimes they also operate in the same manner, futures trading presents a different method of earning revenues for the amount invested on it.</p>
<p>There are certain advantages that futures trading offers to interested investors. One of them is that such instruments are considered highly leveraged investments. In order for an investor to own a futures contract, he only needs to invest a small fraction of the value of the contract. Most investors only invest about ten percent of the contract&#8217;s value in exchange for trading them. This way, investors may be able to trade larger amounts of commodities than if he ever bought the commodities outright.</p>
<p>If he predicted the movement of the prices of the commodities traded correctly, the investor has a great chance of profiting ten-fold for an initial investment of ten percent of the actual futures contract&#8217;s value. That is how leverage works to the advantage of the investor in futures trading.</p>
<p>Another advantage of futures trading is that it is basically a paper investment. Although futures trading involves certain commodities, the investor doesn&#8217;t have to worry about how to take care of the produce himself. Trading is done with the futures contract changing hands instead of the <a title="Commodity Futures Trading" href="http://www-stocktrades.com/commodity-futures-trading" target="_blank">commodity</a> itself. This makes it quite convenient since the investor doesn&#8217;t have to worry about where to store and keep the commodities being traded for the meantime.</p>
<p>Another advantage of futures trading is that futures trading is that the futures contracts being traded are considered very liquid. This means that there are huge amounts of contracts being traded in the market on a daily basis. Orders can be placed quickly and they can be bought or sold in a similar fashion. There are always quite a number of available buyers and sellers for the futures contracts, whatever commodity it might be.</p>
<p>One good thing about the futures trading market is that it enjoys fairer trading as compared with stock and <strong>share trading</strong>. Trading in the futures exchange can be very vocal as trading is done in the midst of shouting of &#8220;Buy!&#8221; or &#8220;Sell!&#8221;. Another thing is that it is more difficult to get insider information in futures trading that seems to be a big problem in the price manipulation in <a title="Stock Trading" href="http://www-stocktrades.com/category/stock-trading" target="_blank">stock trading</a>.</p>
<p>Commissions on futures markets tend to be smaller as compared to other trading markets. The commissions are usually paid after the position has ended. Depending on the level of service, the commissions for brokers can be as low as five dollars to as high as two hundred per transaction.</p>
<p>For an investor, it may be quicker to make money on futures trading. Aside from the leverage provided by futures, the markets tend to move more quickly as compared to cash markets. But this can also work against the investor since the quick pace of the market can also lead to quick losses for the investor for incorrect predictions on their positions.</p>


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