Futures commodity trading and what it entails

By Mark Andrews

Many people see pictures of the large crowd of traders standing in a crowd yelling and signaling with their hands, holding pieces of paper, and writing frantically. To the outsider, it looks like chaos. But do you really think that there's chaos going on in the world's futures pits?

Actually, everyone in the crowd knows exactly what's happening. It's almost like another language. Learn that language and you'll also know what is going on.

How does this differ from the way things operated in the 'old days'? Before there were organized grain and commodity markets, farmers would bring their harvested crops to major population centers. There they would search for buyers. There were no storage facilities; and many times the harvest would rot before buyers were found.

Also, because many farmers would bring their crops to market at the same time, the price of the crops or commodities would be driven down. There was tremendous supply in relation to demand. The reverse was true in the spring. Many times there would be a shortage of crops and commodities and the price would rise sharply. There was no organized or central marketplace where competitive bidding could take place.

Up until now, there wasn't a way for people to easily place bids on commodities. Then, the market started using "forward contracts", and these contracts were a forerunner to the commodity futures market we know today.

Futures prices and the bid and asked price are continuously transmitted throughout the world electronically. Regardless of what geographic location the speculator or hedger is located in, he has the same access to price information as everyone else.

Regardless of the speculator's location, the playing field is leveled because everyone has access to the exact same information. It could be one of your competitors who takes your trade, or another speculator. - 23210

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Find out more on commodity options trading today!

Secrets of Online Trading and Stock Market Hours

By Zachary Riff

Some people would consider stock trading as gambling. In reality, this couldn't be farther from the truth, though. In fact, stock trading isn't simply buying and shares as well. Developing a good trading strategy is the key to making it in the stock market. A stock market simulator, is an online game application that duplicates aspects of real-life stock markets, from trading strategies and information, down to the varying stock market hours of the different stock exchanges. Read on and know more about how you can learn and practice stock trading with an online stock game simulator.

There are two types of online stock game applications for you to be able to practice stock trading skills and strategies. Naturally, no real money is involved; play money is used, so you can practice stock trading without the financial risk. The two types of stock market simulators are: Financial and fantasy stock game simulators.

If you want to practice stock trading through a fictional portfolio based on real stock entries, scenarios and stock market hours, then the financial stock market simulator is the best one for you. Because this type of stock market simulator downloads and processes real and actual stock trading numbers and information, most online trading websites that offer these free stock games use a delayed data feed, that sends the information well after the end of the stock market hours. This prevents any abuse of the stock market simulator and the system by unscrupulous traders who want an edge before the start of the stock market hours of the next day.

Of course, the online simulator systems makes sure that any information from their system will not be used to do actual stock trading before, during and after stock market hours using their information. Safe, reliable and enjoyable, a financial stock market online simulator is a great way for you to practice actual stock trading scenarios and gain experience and a working strategy before you move up to the real thing.

The second type of stock market simulator is the fantasy simulator. This type lets you practice stock trading through thoroughly hypothetical yet amusing settings. While it retains many essential features of the stock market like premium stock picks and options, trading tickers, regular stock market hours, other traders, among others. But unlike the financial simulator application, fantasy stock market simulators feature imaginary stocks that, while representing real items, would never be actually traded in a real stock market trading setting.

Traded items in fantasy stock market simulators would include questions on how long books will last on selected bestseller lists, the box-office success of specific movies, antics of infamous celebrities, rankings and statistics of sports teams and events, and more. The value of a fantasy stock market simulator is in its application of stock market principles and how these may work given a stock trading setting.

The simulator uses the analogy to teach anyone with no background in trading understand how the stock market works. Fantasy stock market simulators use these items because they are familiar to a lot of people, thus opening opportunities for learning online stock trading to more and more people. This is one way where you get to practice stock trading techniques and strategies while having fun.

Learning how shares are bought and sold, and how other variables like stock market hours affect your investments are all part of your learning experience. Learning the ropes with a stock market simulator is one of the best ways to get you started with trading stocks. - 23210

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Find out more concerning operating in stock market hours. Practice stock trading online now.

Develop A Forex Trading System To Ensure Success

By Bart Icles

Forex traders who are new to the forex market are most of the time not well-equipped in gauging what to expect and what the realities are when trading in the forex market. A lot end up in a financial suicide since they do not really know what to do. First, they create a forex account, trade in it, lose, then trade in it again and then lose again. Forex trading should not be treated as purely a gamble. Along with the right forex trading system, forex trading can be a money-spinning activity which you can always rely on. Developing a forex trading system that works for you makes the losing streak that you have been experiencing go away and, eventually, gone forever.

While you are developing the forex trading system that you would eventually be employing when you do forex trading, practice with a dummy account first. This way, you will not be risking your hard-earned money. You will be able to develop the system through the use of this dummy account. This way, losses are avoided and your path to forex trading success will become a gem-lined road.

Here are some characteristics of a good forex trading system:

1. The forex trading system should make you be able to trade successfully given all the odds. It should make you trade with proven techniques that presents the fewest risk of incurring losses.

2. The forex trading system should make you track the progress of your trade at all angles. It should enable you to predict the outcome given all the signals.

3. The forex trading system should help you set up the forex trading indicators to your advantage. These indicators will be used to filter the different factors of your forex trading activities.

4. The forex trading system should include cut and dried techniques that you are comfortable with. You should mix in some of your own style to make you more comfortable.

5. The forex trading system should not make you have a hard time in searching for exit and entry forex trading points. Reading the signals right is a crucial element to this.

6. The forex trading system should give you sound money management skills. This is very much needed since the forex market is a very unpredictable market to trade in. The right approach to money management will enable you to hold on to your precious resources.

People from all walks of life can make good money when forex trading. Putting in place a great forex trading system is the key to it. - 23210

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Succeeding with a forex trading strategy starts with a desire to learn and a drive to become a great trader. Learning forex strategies takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Tail Risk, Options, and The Global Macro Trader

By Bruce Soros

One of the best things about being a global macro trader is that of being able to profit when things go crazy. Put another way global macro traders live for events that are covered in risk. If there is no risk then there is likely no reward. Of course blindly taking risks is a road to guaranteed ruin.

One of the first and most important risk management tools available to the macro trader is the practice of positions sizing. Position sizing is when you determine an optimal amount to risk on a trade. Obviously several factors can go into your position sizing algorithm. You can look at the probability of the trade working out. You can look at the over all risk versus reward ratio. And you can look at how much of your portfolio you want to risk. Obviously there are hundreds of potential variables that you can input into your position sizing model.

Now that you have the right position size you can start to figure out how to best maximize your trade results. Some securities can give you a greater bang for the buck while lowering your over all risk profile. Others of course make your position far riskier then you first thought it was.

One of the easiest ways to cut off tail risk is by building your position using options. When you are a net buyer of volatility, which is to say that you are long options whether they be calls or puts, you are only risking the amount that you have put into the trade. For instance if the option position costs you one thousand dollars then you can not lose more then that.

Options are very useful to cut off tail risk because they totally limit your risk while allowing for plenty of upside. In fact sometimes they provide a lot more bang for the buck then an outright stock position as they can have a lot of inherent leverage.

Of course as with anything there is a potential downside to using option to cut off tail risk. The risk is two fold. One is that you may be overpaying for the options. Depending upon the situation that may or may not matter but it is important to be aware of.

The other major risk is that your time horizon does not fit the trade. If you want to hold the position for years then move on and probably pass on using options. However if you want to hold it for weeks to months then go in and check them out as you can do a lot of risk reduction using options.

Ensure that when you are trading that you look at al the available ways to express your market view. By doing this you will often use options and in so doing improve your global macro trading results. - 23210

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If you need actionable trading ideas then check out The MacroTrader It is a weekly global macro investing advisory publication with frequent intra-week updates for time-critical analysis and actionable trading ideas.

Do Forex Signals Really Pay Off for You?

By James Tynn

While a number of new traders, it is ignorance on the foreign exchange market. They want to join, if they do not, you can start learning here. It is known, the signal to buy some foreign exchange companies and the temptation to please.

The company, these signals are in fact traders in foreign exchange market is a new claim can help to get the feel for what works and what happens. New traders often the signal, we get the tube from the information. In some cases, traders said, sometimes no profit.

Many of the controversy on foreign exchange and signal when the back is worth. Some experts feel that it is not worth what I think as other new traders. The fact that, you need to decide the things themselves and merchants.

If you are new to the Forex, and want to know more about Forex signals, check out this information below. You will be able to notice who you should use if you decide to pay for Forex signals, what precautions to take, and how to go about signing up. You will also learn what you can do instead if you choose not to pay for Forex signals.

Where to get

That a new warning signal for the payment of professional forex traders. Traders also are seen as attractive new ideas can lead to real trouble. First, new traders, you need to trust the people who sell signal.

This can be difficult in itself. Finding someone you trust. Experts agree if it sells a large signal forex traders probably do not have cash. From other foreign exchange market is the life of them. Therefore, it probably will not buy from them. If the signal is likely to be foreign exchange to pay for you.

Free Trial & Audit

If you decide that you really want to go ahead and purchase those Forex signals, there are few things you should think about. First, you should only work with those who give you a free trial. When it comes to legitimate businesses, they will be willing to allow you to test their information before committing to the full cost. If the business is not willing to do this, you should probably take your business elsewhere. You also should think about getting audited results from the provider.

This is working with the company better and how great is the feeling that the actual results from foreign exchange signals. If the company is not willing to give this information, you must go to another location.

With the help if you will spend money on what you going to hurt you are not, in your opinion, is to publish the results of the real thing, you need to work. To believe that A's trust that information, it is easy to hide something.

What Else You Can Do



If you're new to the system, how to actually help you start applying from a foreign exchange Broker for a free account. Are not allowed to trade real money in these accounts, people, it is best to learn a bit about the foreign exchange market. Not only can you use them Demonstrations, trade and research to get a little insight to determine the terms of total foreign exchange. Will learn about the many foreign exchange Broker providing these accounts is traditional open an account for them.

Once to open a traditional account of foreign exchange, to acquire all the progress must be to start small. You lose when you know that most small and not likely to move to the next. The demo trading account and have many different psychological Please remember the transaction through a traditional account. People that "something is better to take the risks of using counterfeit money." Therefore, it is just such a careful and act according to the first transaction. - 23210

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IIn need of a Forex trading signal then look no further, we have the best most sophisticated Forex trading signal right here it is the Forex Confidante. If you want a Forex robot system with enhanced features and an adaptable unique forex algorithm then the Forex Profit Code is the main Forex robot system to purchase.