Most people view the futures markets as a dangerous alternative investment that should be avoided altogether. This is due to the amount of leverage available in the futures contracts themselves. For instance, the margin on a Japanese Yen contract is just under $3,000, and this contract controls 12,500,000 yen, which is equivalent to over $100,000. [...]
Read More...Traditional proponents of employing the trend following doctrine in futures markets suggest that a trader needs to trade a diversified portfolio of markets in order to have the best opportunity to exploit trends when they come along. This is most certainly true, but not all markets are created equal in this regard. A review of [...]
Read More...Professional traders approach trading in a different manner compared to the average person. Professional traders approach trading in a similar manner to how a martial artist develops their skills as a fighter. They first determine their trading doctrine, which is their overall approach to trading in the markets. They then develop strategies in accordance to [...]
Read More...Most investors are completely unaware of the opportunities available in the futures markets, or are simply too scared to consider an investment in these markets. Over the years, futures traders have been viewed as the gunslingers in the financial universe, as these markets have been viewed as the most risky. However, investment managers who make [...]
Read More...Most investors are told that all they need for proper diversification in their investment portfolios is a proper mix of stocks and bonds. Unfortunately, in times where market conditions are volatile, neither asset class will provide you with much protection. For instance, in the typical bear market for stocks, about three out of four stocks [...]
Read More...The great recession began in the Fall of 2007 and some would argue that we have not yet begun a recovery. At that time, the S&P 500 peaked with a high close just under 1550. Over the next 18 months or so, it declined to a low under 700, or a drop of over 50%. [...]
Read More...If you are new to futures trading, I highly recommend you consider the currency futures first, and forget about day trading. Why the currencies? Simply because they trend better than any other market. I’ve found that most new futures traders want to jump head first into trading anything that moves, and they are particularly fond [...]
Read More...I participate in a few investing forums, particularly those dealing with alternative investments such as futures trading and forex trading. What I find most prevalent among the participants in these forums is that they are looking for some sort of holy grail methodology that will propel them to riches over night. For instance, I read [...]
Read More...One of the goals of many traders is to find a trading system that completely automates the trading process, and provides the trader with spectacular returns. Indeed, many successful commodity trading advisors (CTAs) employ a completely systematic approach to their trading. One reason CTAs do this is that it is easier to raise money from [...]
Read More...If you’ve paid attention to the currency markets over the last couple of months, I am sure you have noticed the huge move in the Japanese Yen to the downside against the U.S. Dollar. This is the one currency the Dollar has shown consistent strength against, as Japan, with its new more liberal prime minister, [...]
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